The company will invest about $250m to expand the throughput capacity of the Peace Pipeline by 55,000 barrels per day (bpd).
Pembina is increasing the capacity of Peace Pipeline expecting to accommodate the growing production of crude oil and condensate in the Dawson Creek, Grande Prairie and Kaybob/Fox Creek areas of Alberta.
Pembina Pipeline president and chief operating officer Mick Dilger said the second phase of the pipeline expansion is a part of the company’s strategy to strengthen its existing asset base and integrated service offering.
"The Phase 2 LVP Expansion will allow us to enhance the services we provide customers by easing potential capacity constraints in the near future," Dilger added.
"Further, this project will increase our fee-for-service, secured cash flow stream, thereby adding value to our shareholders."
The firm is currently working on the phase 1 expansion of the pipeline to increase the capacity by 40,000 bpd and take the total capacity of Peace Pipeline to 195,000 bpd by October of 2013.
Upon completion of the Phase 2 expansion project, the total capacity of the crude oil and condensate pipeline will reach 250,000 bpd.
Subject to securing regulatory and environmental approvals, Pembina is anticipating to bring the expansion into service by late-2014.
Together, the Phase 1 and 2 expansions of the pipeline will increase the capacity by 61% from the current levels.
