Pembina Announces $115 Million Simonette Pipeline Expansion Project

abarrelfullabarrelfull wrote on 18 Sep 2013 06:48
Tags: canada n-america pembina pipeline


Pembina Pipeline Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA) announced today that it plans to proceed with a $115 million expansion of its Peace Pipeline System between Simonette and Fox Creek, Alberta (the "Simonette Pipeline Expansion"). In response to requests from area producers for firm service, the Simonette Pipeline Expansion is expected to initially deliver approximately 40,000 barrels per day of additional liquids to Pembina's Fox Creek Terminal. At Fox Creek, this incremental production will access Pembina's previously announced Phase I and II Peace Pipeline mainline expansions from Fox Creek to the Edmonton area markets. In addition, once the project is complete, Pembina expects to have sufficient capacity and operational flexibility within the Simonette to Fox Creek corridor to transport substantially all future volumes nominated through the Open Season process (Phase III Peace Pipeline mainline potential expansion plans) announced March 7, 2013.

The Simonette Pipeline Expansion will require the installation of approximately 60 kilometres of 16-inch pipeline along Pembina's existing right-of-way, and will provide service to producers developing the regional Montney and Duvernay formation resource plays. Once complete, Pembina will have three pipelines in the corridor capable of segregating and shipping various grades of crude oil, condensate and natural gas liquids. Subject to receiving required environmental and regulatory approvals, Pembina expects to commence construction on the pipeline project this winter, with an estimated in-service date in the third quarter of 2014.

In conjunction with the Simonette Pipeline Expansion, Pembina is also installing eight clean crude oil and condensate truck unloading risers at the Fox Creek Terminal which it anticipates will be in service in the fourth quarter of 2013. The addition of high capacity truck unloading facilities will allow producers to access Edmonton area markets through previously announced Phase I and II Peace Pipeline mainline expansions.

"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 Mick Dilger, Pembina's President and Chief Operating Officer. "The Simonette Pipeline Expansion Project ties in directly with our Open Season process by installing sufficient capacity for all anticipated future production growth coming from that particular area. With our existing asset footprint and rights-of-way, we are happy to have the flexibility to phase-in solutions such as this to alleviate capacity constraints while we solidify the remainder of our development plans. We expect to have additional information to share with our shareholders, stakeholders and customers regarding the Open Season in the coming weeks and months."


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