Pembina moves forward with $250M pipeline expansion

Energy producer has secured required contracts to underpin 55,000 barrel per day capacity expansion to its Peace Pipeline.

February 14, 2013   by PLANT STAFF

CALGARY—Pembina Pipeline Corporation will proceed with its previously announced plans to significantly expand its crude oil and condensate throughput capacity on its Peace Pipeline by 55,000 barrels per day.

The company expects the total cost of the expansion to cost approximately $250 million, including mainline expansion and tie-ins. The expansion is expected to go into service by late 2014.

The crude oil and condensate (low vapor pressure, or “LVP”) portion of the Peace Pipeline is currently operating at capacity. Pembina is working to complete its previously announced Phase 1 LVP Expansion, which will expand crude oil and condensate capacity on this system by an additional 40,000 bpd to reach 195,000 bpd by October of 2013.

The combination of Phase 1 and Phase 2 LVP Expansions will increase capacity by 61% from current levels.

Pembina will install five new pump stations, upgrade six existing pump stations, and add additional operational storage at the Phase 2 expansion. It will also reconfigure existing pipeline, building more than 10km of new pipeline between Gordondale and Spirit River.

Pembina Pipeline Corp. is an energy company based in Calgary. It’s assets include pipelines that transport conventional and synthetic crude oil and natural gas liquids produced in western Canada; oil sands and heavy oil pipelines; gas gathering and processing facilities; and, an oil and natural gas liquids infrastructure and logistics business.

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