Musreau II, along with associated NGLs and gas gathering pipelines, is expected to cost $110m. It will extract propane-plus (C3+) and yield 4,200 barrels per day of NGLs for transportation on Pembina’s conventional pipelines.

The facility is expected to be operational in the first quarter of 2015, pending approvals from regulatory and environmental authorities.

Pembina CEO Bob Michaleski said, "We are excited to have secured long-term contracts for another field gas processing and gathering infrastructure development and services.

"Musreau II will provide much-needed processing capacity for our customers located in an attractive area with strong liquids-rich natural gas supply growth."

"Our ability to continue to attract such projects again demonstrates the value of our vertically integrated service offering – volumes from Musreau II will find their way to the Redwater area via our expanded Conventional Pipelines," Michaleski added.

After completion of the facility, the company’s gas processing capacity will increase to 1.2 billion cubic feet per day in two years.