The phase III expansion, which is expected to be in service between late 2016 and mid 2017, will support ten-year transportation services agreements for volumes that average about 230,000bpd or approximately 75% of the initial capacity.

To fulfill capacity needs for Pembina’s customers, the 540km pipeline will be expanded upon certain segments of the company’s existing pipeline systems from Taylor, British Columbia southeast to Edmonton, Alberta.

The company intends to build a new 270km 24in diameter pipeline from Fox Creek, Alberta, to the Edmonton area, which is expected to carry around 320,000bpd, initially and a capacity of over 500,000bpd with the addition of midpoint pump stations.

Pembina will have three distinct pipelines in the Fox Creek to Edmonton, Alberta corridor, once complete, which are expected to hold the designed capacity to transport about 885,000bpd.

The expansion is also expected to increase pipeline interconnectivity between Edmonton and Fort Saskatchewan including Pembina’s Redwater and Heartland Hub sites as well as third-party delivery points in these areas.

Pembina Pipeline president and COO Mick Dilger said the company has announced open season in March to identify producers’ pipeline capacity requirements beyond expansions, which are already underway.

"The project provides customers an inclusive solution, as it will increase crude oil, condensate and NGL take-away capacity from northwestern Alberta and northeastern British Columbia to markets in the Edmonton and Fort Saskatchewan areas," Dilger added.

Image: Pembina to expand pipeline system in Canada. Photo: Courtesy of puttsk/FreeDigitalPhotos.net.