The company will upgrade the mainline pump stations and make other facility modifications, to increase pipeline’s capacity up to 250,000 barrels per day.
Subject to regulatory and environmental approvals, the project is expected to be completed in mid-2016.
Commissioned in 2008, the Horizon pipeline was built to connect Horizon oil sands facility, which is operated by Canadian Natural Resources, to refineries, export pipelines and other delivery locations in Edmonton.
The pipeline is being operated under a 25-year fixed return contract, which expires in 2034.
Pembina oil sands and heavy oil vice president Andrew Gruszecki said: "The Horizon expansion reinforces the strategic nature of Pembina’s existing oil sands and heavy oil asset base.
"Furthermore, the Horizon Expansion, which is underpinned by a long-term agreement, will be beneficial to our shareholders by adding to our growing cost-of-service, low-risk cash flow streams."
Pembina owns and operates an integrated system of pipelines that transport various hydrocarbon liquids in western Canada and in North Dakota as well as gas gathering and processing facilities and an oil and NGL infrastructure and logistics business.
