The staged expansion of Pembina Pipeline’s system connecting the Montney play to the Edmonton region is getting bigger.
The company says that in response to increased customer demand, it will spend $120 million to build additional pipeline and terminalling infrastructure on its Peace Pipeline network.
Pembina recently increased capacity to transport crude oil, condensate and natural gas liquids into the Edmonton market with the completion of its Phase III expansion.
Construction is currently underway on the Phase IV and V expansions. These projects are nearing completion and expected to be placed into service in late 2018, Pembina said on Monday.
Since announcing the pipeline’s Phase VI expansion earlier this year, customers have booked an additional 50,000 bbls/d on the Peace and Northern Pipeline systems, the company said.
This increases peak firm volume commitments to approximately 885,000 bbls/d in 2019.
“Ultimately, Pembina expects to have at least four segregated product pipelines in the corridors between Gordondale, Alberta and the Edmonton area, which will significantly improve operating efficiencies and capital requirements,” senior vice-president Jason Wiun said in a statement.
