Pembina Pipeline to invest $240M this year
CALGARY: Pembina Pipeline Corp. will invest $240 million to expand its oil sands and heavy oil business in 2010.
Pembina, a wholly owned Calgary-based subsidiary of Pembina Pipeline Income Fund, said $152 million of the capital budget is allocated for the construction of the Nipisi and Mitsue Pipeline projects.
The two projects were initiated in response to industry demand for diluted heavy oil take-away from and diluent supply to, the region north of the Town of Slave Lake, Alberta.
Regulatory decisions are anticipated by September.
Approximately 80% of the project engineering is complete and Pembina is on schedule to finish the projects in mid-2011. The two pipelines are estimated to cost $440 million. As of December, Pembina had spent $76 million on the projects.
The company said spending plans also include investing $46 million in revenue-generating projects within Pembina’s conventional pipeline business, primarily to increase capacity at certain sites and improve the operational performance and integrity of its Peace, Drayton Valley and Western systems.
The midstream and marketing business plans to invest $35 million on projects designed to expand terminals, storage facilities and gas processing facilities. The remainder of the budget will support various projects across the company.