Pembina Pipeline Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA) announced today that it has entered into binding agreements to proceed with a $210 million expansion to Pembina's pipeline infrastructure in northeast British Columbia ("B.C.") (the "NEBC Expansion" or "the Project"). The NEBC Expansion will transport condensate and natural gas liquids for various producers in the liquids-rich Montney resource play.
"Pembina has been actively engaging with producers regarding the development of the Montney play," said Jason Wiun , Pembina's Vice President, Conventional Pipelines. "With significant exploration in the area, our customers are looking for a solution for their liquids production. The NEBC Expansion will allow us to provide customers with a cost-effective transportation solution for this production and access to Pembina's existing infrastructure at Taylor, B.C. which feeds into the Edmonton, Alberta area market hub."
The Project entails the construction of approximately 160 kilometres of up to 12-inch diametre pipeline with a base capacity of up to 75,000 barrels per day that will parallel the Company's Blueberry pipeline system northwest of Taylor, B.C. to the Highway/Blair Creek area of B.C. Subject to regulatory and environmental approval, Pembina anticipates bringing the NEBC Expansion on-stream in the second quarter to fourth quarter of 2017 timeframe.
The Project is underpinned by a long-term, cost-of-service agreement with an anchor tenant. Volumes aggregated by the NEBC Expansion will feed into Pembina's Phase III pipeline expansion downstream of Taylor, B.C. (the "Phase III Expansion").
"The NEBC Expansion is a great opportunity for us as it further supports the economics of our Phase III Expansion," said Mr. Wiun. "We have been expanding our infrastructure across the Alberta portion of the Western Canadian Sedimentary Basin and are very excited to have the opportunity to extend our service to our customers in B.C. The Project not only benefits our customers, it also benefits our investors as we are able to add additional value through our integrated service offering."