Pembina Pipeline Corp., Calgary, will build a shallow-cut gas processing plant and expand existing capacity at Musreau, northwest of Edmonton, by 100 MMcfd. The company estimates the Musreau III plant will cost $105 million (Can.).
The plant will be supported by long-term agreements with several area producers, the company said, and involves construction of the plant adjacent Pembina’s existing Musreau processing and the nearly complete Musreau II plant.
Pembina expects Musreau III to have liquids extraction capacity of about 3,000 b/d, subject to gas compositions. Similar to the company’s other gas processing, the take-or-pay agreements for Musreau III provide flow through of operating expenses.
Subject to regulatory and environmental approval, Pembina anticipates bringing Musreau III on stream in mid-2016.
In total, once Musreau III is complete, the Cutbank complex will have about 570 MMcfd of shallow-cut processing capacity and 205 MMcfd of deep-cut processing capacity and will produce roughly 25,000 b/d of liquids for transportation on Pembina’s conventional pipelines, said Stuart Taylor, Pembina senior vice-president for NGL and natural gas.