The Calgary-based company said the project, called Musreau 2, will produce 100 million cubic feet of gas per day.
"Musreau 2 will provide much-needed processing capacity for our customers located in an attractive area with strong liquids-rich natural gas supply growth," said chief executive Bob Michaleski in a release.
Capacity for the project will go towards long-term contracts the company holds, and Pembina said it expects the facility to begin operating in the first quarter of 2015.
On Friday, the company also reported higher profits and boosted its monthly dividend by 3.7 per cent to 14 cents per share.
Pembina reported earnings of $93.8 million, or 30 cents per share, in the second quarter compared to $80.4 million, or 28 cents a share, in the year-earlier period.
Revenue increased to $1.18 billion from $870.9 million in the same three-month period ended June 30, 2012.
Pembina transports crude oil and natural gas liquids produced in western Canada, owns and operates oilsands pipelines and has a growing presence in midstream and gas services.
Shares of the company fell 44 cents to close at $31.59 on the Toronto Stock Exchange.
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