Pembina announces $115M Simonette pipeline expansion project

Pembina Pipeline Corporation has announced plans to proceed with a $115-million expansion of its Peace Pipeline System between Simonette and Fox Creek, Alberta (the “Simonette Pipeline Expansion”). In response to requests from area producers for firm service, the Simonette Pipeline Expansion is expected to initially deliver approximately 40,000 barrels per day of additional liquids to Pembina’s Fox Creek Terminal. At Fox Creek, this incremental production will access Pembina’s previously announced Phase I and II Peace Pipeline mainline expansions from Fox Creek to the Edmonton area markets. In addition, once the project is complete, Pembina expects to have sufficient capacity and operational flexibility within the Simonette to Fox Creek corridor to transport substantially all future volumes nominated through the Open Season process (Phase III Peace Pipeline mainline potential expansion plans) announced March 7, 2013.

The Simonette Pipeline Expansion will require the installation of approximately 60 kilometres of 16-inch pipeline along Pembina’s existing right-of-way, and will provide service to producers developing the regional Montney and Duvernay formation resource plays. Once complete, Pembina will have three pipelines in the corridor capable of segregating and shipping various grades of crude oil, condensate and natural gas liquids. Subject to receiving required environmental and regulatory approvals, Pembina expects to commence construction on the pipeline project this winter, with an estimated in-service date in the third quarter of 2014.