Pembina adds more pipelines to Phase III system expansion

Pembina Pipeline Corp. plans to enlarge its previously announced Phase III pipeline expansions by building a new 16-in. OD pipeline from Fox Creek, Alta., to Namao, Alta., and a new 12-in. OD pipeline from Wapiti, Alta., to Kakwa, Alta. The 16-in, pipeline will run 270 km in the same right-of-way as the previously proposed 24-in. OD pipeline from Fox Creek to Namao (OGJ Online, Sept. 5, 2014).

Pembina expects the two pipelines to have a combined initial capacity of 420,000 b/d, reaching more than 680,000 b/d with the addition of midpoint pump stations. Pembina has 289,000 b/d, or 69% of initial combined capacity, under contract and expects the lines to enter service late-2016 to mid-2017.

Completion of the lines will bring total capacity between Fox Creek and Namao to more the 1-million b/d, transporting propane-plus, ethane-plus, condensate, and crude oil in four separate pipelines. The expansions will also provide ratable delivery of propane-plus and ethane-plus to regional fractionators, including Pembina’s own Redwater fractionator. Pembina earlier this year reaching binding commercial agreements to add a third fractionator—55,000 b/d propane-plus—at Redwater, boosting the site’s eventual capacity to 210,000 b/d (OGJ Online, May 13, 2014).

The company intends the 70-km Wapiti-to-Kakwa Pipeline to debottleneck a portion of Pembina's existing pipeline system, adding an initial 95,000-b/d capacity and ultimately allowing deliveries into the core segment of the Phase III Expansion between Fox Creek and Namao. Pembina also plans to build two new pump stations as part of this project. Subject to regulatory approval, Pembina expects the Wapiti-to-Kakwa Pipeline enter service between late-2016 and mid-2017 as well.

Pembina expects the two new expansions to cost a total of $435 million, bringing overall estimated cost of the Phase III Expansion to $2.44 billion.

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