By July 5, 2017 Read More →

Pembina Pipeline puts $2.8 billion of Alberta assets into service



Redwater complex has fractionation capacity of 210,000 bpd, largest in Canada

Pembina Pipeline Corporation announced it has placed $2.8 billion of integrated capital projects into service, including its Phase III pipeline expansion and two connected major delivery points, according to a press release.

“At the outset of these projects, we committed to constructing large-scale, multiyear-build assets on time and on budget, and I’m proud to say that we’ve successfully delivered on that promise, with the overall portfolio coming in under budget by approximately 8 per cent and either on time or ahead of schedule,” said Mick Dilger, Pembina’s CEO.


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Phase III Expansion

The Phase III Expansion was placed into service on June 30 on time and under budget from the $2.44 billion expected capital.

It included installing over 900 kilometres of new pipeline primarily along the company’s existing Peace and Northern system rights-of-way, as well as upgrading and adding new mainline pump stations.

In support of handling increased product, 420,000 b/d of incremental capacity was added in the Fox Creek to Namao corridor of Alberta through the construction of two pipelines: a 16 inch and a 24 inch diameter pipeline, each spanning approximately 290 km.


RFS III was also placed into service on June 30 ahead of schedule and under budget.

Backstopped by long-term, take-or-pay contracts, RFS III added 55,000 bpd of additional propane-plus fractionation capacity and leveraged the designs of Pembina’s first and second fractionators.

Pembina’s Redwater complex has fractionation capacity of 210,000 bpd, the largest in the Canadian energy infrastructure sector.

“Based on our customers’ volume projections supporting the Phase III Expansion, we secured contracts to build RFS III so that pipeline and fractionation capacity would be better aligned within the Fort Saskatchewan area,” said Stuart Taylor, Pembina’s Senior Vice President, NGL and Natural Gas Facilities.


Also aligned with the in-service of the Phase III Expansion and RFS III, on June 30, 2017, Pembina placed additional condensate connections at CDH into service on time and under budget.

CDH, which operates commercially as a fee-based hub, provides direct connectivity for growing condensate volumes transported on Pembina’s pipeline systems and offers diluent services for oil sands customers.

Currently, the facility’s pipelines are capable of delivering approximately 400,000 bpd of condensate to regional third-party diluent pipelines, with connections to the Access, Cold LakeFort Saskatchewan (FSPL) and Polaris pipelines.

pembinaBy the end of 2017, CDH is also expected to have additional third-party connections as well as 500,000 barrels of above ground storage in operation.

“The Canadian Diluent Hub was driven by the development of the Montney and Duvernay resource plays in our service areas,” said Murphy.

Several additional factors supported the development of CDH, including its Alberta Industrial Heartland location, which is proximal to oil sands and diluent pipelines, as well as associated terminals.

“Increasing production from these plays fueled infrastructure development, such as our Phase III Expansion and RFS III. With our access to growing condensate supply through our existing and new infrastructure, customers were supportive of us expanding diluent market access and service offerings,” concluded Murphy.

Development in this location enabled Pembina to avoid costly and congested construction in the greater Edmonton area.

Pembina reached its maximum capacity into the existing Edmonton-area condensate infrastructure, so the company foresaw that additional infrastructure would be required to accommodate higher volumes.

Posted in: Canada

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