ALBERTA

Pembina Pipeline moving ahead with $115-million expansion in Alberta

09/16/2013 11:06 EDT | Updated 11/16/2013 05:12 EST
CALGARY - Pembina Pipeline Corp. (TSX:PPL) says it's going ahead with a $115-million expansion to its Peace Pipeline System northwest of Edmonton, which will initially deliver an additional 40,000 barrels per day to its Fox Creek Terminal.

The project, called the Simonette Pipeline Expansion, will involve installing about 60 kilometres of new 16-inch pipeline, serving producers in the Montney and Duvernay shale formations. From Fox Creek, the resource will be able to access the Edmonton market on other planned Pembina pipelines.

Once complete, Pembina will have three pipelines along the corridor that can segregate and ship various grades of crude oil, condensate and natural gas liquids.

Provided it receives the regulatory go-ahead, Pembina said it expects to begin construction this winter and start up the new pipeline during the third quarter of 2014.

Pembina also plans to install eight truck unloading risers at the Fox Creek Terminal in conjunction with the Simonette project. Those are expected to be up and running in the fourth quarter of this year.

"The additional capacity provided by these expansions will help ensure our customers have timely access to markets as they continue to pursue their drilling and production plans," said company chief operating officer Mick Dilger.

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