Gas processing: Pembina Pipeline announces Resthaven plant expansion Gas processing: Pembina Pipeline announces Resthaven plant expansion

Pembina Pipeline announces Resthaven plant expansion

Source:Pembina Pipeline Corporation

A long-term agreement with Mosaic Energy Ltd. underpins the $170 million gas processing plant expansion and associated new gathering pipeline.

Pembina Pipeline Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA) announced today that it has entered into commercial agreements to proceed with a $170 million expansion of the Company's recently completed Resthaven Facility (a 200 million cubic feet per day ("MMcf/d") (134 MMcf/d net to Pembina) gas processing facility) and to build, own and operate a new gas gathering pipeline that will deliver gas into the Resthaven Facility (collectively, the "Resthaven Expansion" or "the Project").

The Resthaven Expansion is underpinned by a long-term, fee-for-service contract with Mosaic Energy Ltd. ("Mosaic"). The gas processing expansion component of the Project is expected to cost approximately $105 million (gross) and increase capacity of the existing Resthaven Facility by an additional 100 MMcf/d (gross), bringing total capacity to 300 MMcf/d (gross). To support this expansion, Pembina plans to build a $65 million, 28 kilometer 12" gas gathering pipeline that will connect the customer's condensate recovery plant into the Resthaven Facility. Should all the partners in the existing Resthaven Facility participate in the Project, Pembina's capital for the plant will decrease to $75 million and its incremental expansion capacity will be 69 MMcf/d (net). The additional natural gas liquids that will be extracted from the processed gas will be transported on the recently constructed Resthaven lateral.

Subject to regulatory and environmental approvals, the pipeline is expected to be in-service by the second quarter of 2015, followed by the gas processing expansion in mid 2016.

With the additional new volumes at the Resthaven Facility, Pembina has also signed a long-term contract with Mosaic for Phase III pipeline capacity and fractionation capacity at the Company's Redwater fractionation and storage facility.

"This is an exciting opportunity given the attractive regional geology, including the Montney, Wilrich and other cretaceous reserve potential," said Stuart Taylor, Pembina's Senior Vice President, NGL and Natural Gas Facilities. "We are pleased to have secured long-term binding agreements to expand our Resthaven facility, build a new pipeline lateral and provide fractionation services to support our customers' development. Being able to provide bundled services allows us to be the "one-stop-shop" solution for our customers. This project again demonstrates the value of our vertically integrated approach."

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs