The company will expand the existing capacity of the Northern Pipeline Systems by 108,000 barrels per day (bpd) at a cost of about $545m and will invest an additional amount of $125m to tie producers to both the increased systems.
Under the expansion project, the company intends to increase the capacity of its Peace Pipeline System by 55,000 bpd by mid or late 2014 and enhance the capacity of Northern NGL System by 53,000 bpd by early to mid-2015.
Pembina president and chief operating officer Mick Dilger said the company is undertaking the pipeline systems expansion project because of the increased drilling activity by the producers in the Western Canadian Sedimentary Basin.
"Our pipeline expansions will allow us to enhance the services we provide customers while adding value to our shareholders," Dilger added.
As part of the phase 2 expansion project of the Northern NGL System, the company will refurbish three pump stations, build four new pump stations, set up an additional operational storage, and construct 94km of new pipeline for cost of about $330m.
Upon completion, the project will increase the capacity of the Northern NGL System to 220,000 bpd.
Pembina, under the Peace Pipeline System expansion project, will upgrade six and construct five new pump stations, add another operational storage, build 10km of new pipeline and reconfigure existing lines for $215m, and increase the overall capacity of the system to 250,000 bpd.
