Pembina Pipeline has announced a phase VI expansion of its Peace pipeline system in the Canadian province of Alberta with an investment of nearly C$280m ($217.52m).

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Image: Pipeline system. Photo: courtesy of supakitmod/Freedigitalphotos.net.

The latest expansion will facilitate additional volume commitments from the Montney and Deep Basin resource plays, said the Canadian midstream company.

Pembina Pipeline said that the phase VI expansion will see upgrades carried out at Gordondale in Alberta province and a new 16inch pipeline to be laid out between LaGlace and Wapiti along with associated upgrades of pump stations. Also part of this project will be a 20inch pipeline running from Kakwa and Lator.

The phase VI expansion is expected to begin operations in early 2020, should it get the necessary environmental and regulatory approval.

Pembina president and CEO Mick Dilger said: “It is exciting to announce another expansion of our Peace Pipeline.

“As producers continue to develop the Western Canada Sedimentary Basin, our assets are strategically located and readily expandable to provide a fully integrated service offering to support our customers’ future needs.”

Pembina Pipeline is simultaneously working on the phase IV and phase V expansions of the Peace pipeline system, which it expects to commission in late 2018.

In the phase IV expansion, it is carrying out construction work which will facilitate additional capacity between Fox Creek and Namao in Alberta. The stretch has already seen an expanded capacity through the phase III expansion, which was commissioned in July 2017.

In the phase V expansion, Pembina Pipeline is working on debottlenecking upstream of Fox Creek.

Pembina Pipeline said that it is continuing to pursue long-term contracts on its Peace and Northern pipeline systems. Currently, the midstream company is expecting peak firm volume commitments to be around 830,000 barrels per day in 2019.

Last November, the midstream company said that it will spend nearly C$540m ($419.5m) in its conventional pipelines business in 2018. A majority of this amount was planned to be allocated for completing the phase IV and phase V expansions of the Peace and Northern pipeline systems.