Projects

Pembina has a strong record of community engagement, environmental stewardship and safe, reliable pipeline performance. We believe in staged, carefully managed growth that respects the interests and concerns of our stakeholders while providing the pipelines and energy services our growing economy demands.

Phase III Pipeline System Expansions

Overview

On December 16, 2013, Pembina announced we obtained commercial support in the form of binding, long-term agreements with our customers to proceed with expanding our pipeline systems. The expansion program, which we refer to as the Phase III Expansion, entails constructing new pipeline following and expanding upon certain segments of our existing pipeline systems from Taylor, British Columbia southeast to Edmonton, Alberta to fulfill capacity needs for our customers.

Since the original project announcement, Pembina has continued working with its customers. On September 10, 2014, we announced that due to strong customer demand, we plan to expand the Phase III Expansion by constructing a new 16" diameter pipeline from Fox Creek, Alberta into Namao, Alberta and a new 12" diameter pipeline from Wapiti, Alberta into Kakwa, Alberta.

On June 30, 2017, Pembina announced that it placed the entire Phase III Expansion program into service on time and under budget. With the Phase III Expansion now complete, Pembina has four distinct pipelines between Fox Creek and Namao, allowing us to transport four distinct hydrocarbons (ethane-plus, propane-plus, condensate and crude oil) each in its own segregated pipeline, plus upstream capacity to handle higher volumes driven by the development of the Montney, Duvernay and Deep Basin resource plays. 

Pembina is committed achieving excellence in every aspect of our business, from how we design, construct and operate our pipelines and facilities to how we interact with community neighbours, customers and employees. For the Phase III Expansion, we have consulted with applicable regulatory authorities, First Nations, landowners and other stakeholders on the project plans. Please refer back to this page for future updates on consultation activities. If you have any questions or concerns, please email FCNamao@pembina.com.
 
Contact Information
Pembina values your input. If you have questions, comments, or want additional information, please contact us at:

Pembina's toll-free project line:
1-888-920-1979

Phase III Expansion project e-mail:
FCNamao@pembina.com

Pembina Pipeline Corporation
4000, 585 – 8 Avenue SW
Calgary, Alberta T2P 1G1

Pembina's 24 hour toll-free
Emergency response number:
1-800-360-4706

For questions regarding procurement and/or qualifying as a vendor, we encourage you to contact us through the Phase III Expansion project e-mail address listed above.
Pembina has completed an expansion between Simonette and Fox Creek. The pipeline was placed into service in early August 2014.

Fox Creek to Namao

The core of the Phase III Expansion is a new 270 km 24" diameter pipeline from Fox Creek, Alberta, to the Edmonton area. On September 10, 2014, we announced plans to expand the original Phase III pipeline expansions by constructing a new 16" diameter pipeline that will be built in the same right-of-way as the proposed 24" diameter pipeline from Fox Creek to Namao. Once the 24" diameter and 16" diameter pipelines are complete (subject to regulatory approval), Pembina will have four pipelines in the Fox Creek to Edmonton corridor with an ultimate capacity of over 1,000,000 barrels per day ("bpd"). This will allow us to transport four distinct hydrocarbons -- propane-plus, ethane-plus, condensate and crude oil - each in its own segregated pipeline. This is great for Pembina and for our customers as we will be able to realize operational efficiencies, such as minimizing or eliminating batch interface between the products and streamlining storage requirements. In addition, we will be able to provide a ratable flow of propane-plus and ethane-plus into industry fractionators, including our Redwater fractionator, which will help to optimize operations at these facilities.

Wapiti to Kakwa

The Wapiti to Kakwa Pipeline was completed in Q3 2016 and is intended to debottleneck a portion of Pembina's existing pipeline system. The pipeline will traverse from Wapiti, Alberta to Kakwa, Alberta. It will be approximately 70 km in length and is expected to have an initial capacity of approximately 95,000 bpd. This debottleneck will ultimately allow product to be delivered into the Company's core segment of the Phase III Expansion between Fox Creek and Namao. As part of this project, Pembina also plans to build two new pump stations. 
Additional Information
Project Fact Sheet

Phase IV & V Expansions

Phase IV:

Phase IV is comprised of adding two pump stations on the recently installed 24" pipeline from Fox Creek to Namao, Alberta. Phase IV is expected to increase capacity in this corridor by approximately 180,000 bpd. Subject to regulatory and environmental approvals, we expect to place this expansion in service in late 2018. Pembina has the ability to further expand capacity between Fox Creek and Namao by adding additional pump stations.

Phase V:

Phase V includes buidling a new 95 km, 20" pipeline from Lator to Fox Creek, Alberta as well as other infrastructure including: 40,000 barrels of operational and condensate storage, new tie-ins and site modifications, a new pump station near Dawson Creek, BC and upgrading an existing pump station in Gordondale, AB. Phase V is aimed at addressing capacity constrainsts between Lator and Fox Creek by adding 260,000 bpd of capacity in that corridor which will support growth in the prolific Monteny and Deep Basin resource plays. Pembina expects to bring Phase V into service in late-2018.  

Prince Rupert Terminal

On November 29, 2017, Pembina announced that its Board of Directors approved the development of the Company's previously proposed liquefied petroleum gas ("LPG") export terminal (the "Prince Rupert Terminal" or the "Project").

The Prince Rupert Terminal will be located on Watson Island, British Columbia on lands leased from a wholly-owned subsidiary of the City of Prince Rupert (the "City"). Through site assessments and engagement with key stakeholders, the Company has confirmed Watson Island as the ideal location for the Project to be developed and has executed definitive commercial agreements with the City.

The project is best viewed as a small-scale rail terminal, moving LPG from rail cars to 'handysize' ships destined for international markets. There is no on-site processing or refrigeration, and smaller volumes for storage and movement require a smaller footprint relative to other energy facilities proposed on the west coast. The Prince Rupert Terminal is expected to have a permitted capacity of approximately 25,000 barrels per day of LPG and is expected to be in service mid-2020, subject to receiving necessary regulatory and environmental approvals.

 
Additional information
Contact information
Pembina values our connection with the community. If you have questions, comments, or want additional information, please contact the project team at:

Pembina's toll-free project line:
1-855-718-1575
Watson Island terminal project email:
propaneterminal@pembina.com

PDH/PP Facility

Overview

The proposed integrated propylene and polypropylene production facility ("PDH/PP Facility") is a project being developed by Canada Kuwait Petrochemical Corporation ("CKPC"), a joint venture between Pembina and Petrochemical Industries Company K.S.C. ("PIC").

The Project would be located on land owned by Pembina in Sturgeon County, Alberta. The facility would use propane as its feedstock, converting it to propylene, and then further process it into polypropylene. Once operational, the PDH/PP Facility could consume approximately 22,000 barrels per day of propane sourced from Pembina's Redwater complex as well as other regional fractionation facilities and produce over 1.2 billion pounds per year of polypropylene. For Pembina, this investment represents a material extension of our natural gas liquids value chain strategy and creates a significant incremental local market for western Canadian hydrocarbons. The preliminary capital cost estimate of the PDH/PP Facility is $3.8 to $4.2 billion (gross).
About our CKPC Partner
Petrochemical Industries Company K.S.C ("PIC"), founded in 1963, is a subsidiary of Kuwait Petroleum Corporation ("KPC"). With world-scale manufacturing facilities around the world, PIC manufactures and markets chemicals that are the essential building blocks for countless products that people use every day and that serve diversified markets worldwide. In addition to manufacturing and marketing fertilizers, olefins and aromatics in Kuwait, PIC participates in multiple joint ventures that also produce and market petrochemical products both locally and internationally. PIC has been operating in Alberta since 2004 through various investments including those in the petrochemical industry.

View PIC's Website

Project Background

This Project is an opportunity to develop crucial new market demand for propane in the Province of Alberta. Over the past decade, approximately 85 percent of Alberta's propane production has been exported across North America. Developing Alberta-based, value-add infrastructure will increase local propane demand benefitting Alberta's oil and gas producers, as well as the Province, by increasing regional economic activity and tax base.

The polypropylene would be transported in a pellet form to markets across North America and internationally. Polypropylene is one of the world's most commonly used polymers. Traditional uses include automobile plastics, medical supplies, home appliances, transparent containers as well as numerous other applications.

With access to the largest supply of propane in the Western Canadian Sedimentary Basin, CKPC is ideally suited to facilitate the development of this Project. Pembina’s completion of its third fractionator at the Redwater site, brings its total fractionation capacity over 200,000 barrels per day and approximately 60,000 barrels per day of propane supply in the Fort Saskatchewan, Alberta area.
  • April 11, 2016: Pembina and PIC announce that they had entered into agreement to undertake a joint detailed feasibility study of a world scale integrated PDH/PP Facility in Alberta 
  • June 30, 2016: Pembina acquires over 2,200 acres of developable land adjacent to its Redwater complex to serve as home of PDH/PP Facility
  • December 5, 2016: Pembina announces that the PDH/PP Facility was selected as the recipient of $300 million in royalty credits under the Government of Alberta's Petrochemicals Diversification Program.
  • May 15, 2017: Pembina and PIC announce the execution of 50/50 joint venture agreements that include binding commercial terms in support of the Project and the formation of Canada Kuwait Petrochemical Corporation ("CKPC"). Additionally, CKPC announces that approval has been received to proceed with activities for front end engineering design ("FEED") for the Project. FEED activities are expected to be completed by late 2018, followed by a final investment decision from each partner.
  • July 11, 2017: CKPC executes formal agreements with Honeywell UOP to license its Oleflex process technology.
  • July 27, 2017: CKPC executed formal agreements with W.R. Grace to license its UNIPOL PP process technology. 
  • October 25, 2017: Sturgeon County announces support for PDH/PP project, enters into Municipal Improvement Agreement with CKPC.
  • November 14, 2017: CKPC becomes a member of the Chemistry Industry Association of Canada (CIAC).
  • December 5, 2017: CKPC selects front-end engineering design for Greenfield Petrochemical Facility

Duvernay I

On November 5, 2015, Pembina announced that it plans to construct, own and operate a new 100 MMcf/d shallow cut gas plant, the Duvernay I Facility, that is in close proximity to Pembina's Fox Creek Terminal. The expected capital cost for the project, including supporting infrastructure, is expected to be approximately $125 million.

Duvernay I, which is underpinned by a long-term, substantial take-or-pay agreement with a large and diversified investment-grade oil and gas producer, has NGL extraction capacity of approximately 5,500 bpd, subject to gas compositions. Pembina placed Duvernay I into service on November 1, 2017 ahead of schedule and under budget.

Duvernay I Facility News Release

On May 31, 2016, Pembina announced that it entered into agreements with a multinational, investment grade customer to construct associated infrastructure relating to Duvernay I. The supporting infrastructure includes condensate, gas and water field handling (the Field Hub), a gas gathering trunk line and a fuel line for a total expected capital cost of approximately $145 million. 

The Field Hub is committed under a long-term, fixed-return agreement. Aligning with Duvernay I, Pembina placed the Field Hub and associated infrastructure into service on November 1, 2017 ahead of schedule and under budget.  

 

Duvernay II + additional infrastructure

On November 6, 2017, Pembina announced that it has executed further agreements to construct and operate the first tranche of infrastructure development under its previously announced 20-year infrastructure development and service agreement with Chevron. The Agreement includes over 230,000 acres of land dedication by Chevron in the liquids-rich Kaybob region of the Duvernay.

Pembina has been requested to develop and construct:
  • raw product separation and water removal infrastructure;
  • a condensate stabilization facility with approximately 30,000 barrels bpd of raw inlet condensate handling capacity;
  • a 100 million cubic feet per day gas processing facility with approximately 5,000 bpd of propane-plus liquids capacity (Duvernay II a replica of Pembina's Duvernay I facility); and
  • a 10-inch condensate pipeline lateral that will connect to the Company's Peace Pipeline system.
Duvernay II and the related infrastructure will be located at the Company's existing Duvernay complex. Pembina expects the total capital cost to be approximately $290 million with an anticipated in service date of mid to late 2019, subject to regulatory and environmental approvals. The facilities will have a 20-year contractual life and would be back-stopped by a combination of fee-for-service and fixed-return arrangements. Additionally, Peace pipeline and Redwater NGL fractionation agreements were also executed.

Duvernay Infrastructure and Service Agreement
Duvernay II + additional infrastructure

Redwater Fractionation and Storage Facility Projects

Construction underway at Pembina's RFS II site. RFS II was placed into service April 2016.

RFS II:

RFS II, which is fully contracted by take-or-pay agreements, essentially was a twin the Company's existing 73,000 bpd ethane-plus fractionator at Redwater and was built to address a portion of the anticipated shortfall in fractionation capacity within the Fort Saskatchewan, Alberta area. On April 1, 2016, Pembina placed RFS II into service on budget and one quarter later than expected.

RFS III:

RFS III is a new 55,000 bpd propane-plus fractionator at Pembina's existing Redwater fractionation and storage complex and is underpinned by long-term take-or-pay contracts with multiple producers. On June 30, 2017, Pembina placed RFS III into service under budget and ahead of schedule.

NEBC Expansion

Pembina has received regulatory approval for and initiated construction on a $235 million expansion to its pipeline infrastructure in northeast British Columbia (the "NEBC Expansion"). The NEBC Expansion will transport condensate and natural gas liquids for various producers in the liquids-rich Montney resource play and entails the construction of approximately 160 kilometres,12-inch diametre pipeline with a base capacity of up to 75,000 bpd that will parallel the Company's Blueberry pipeline system northwest of Taylor, B.C. to the Highway/Blair Creek area of B.C. In late October 2017, Pembina placed the NEBC Expansion into service on time and on budget.

The Project is underpinned by a long-term, cost-of-service agreement with an anchor tenant and volumes aggregated by the NEBC Expansion will feed into Pembina's Phase III Expansion. 

To view the project fact sheet, please click here.

For more information on this project, please click here. You will be redirected to the Project Information Centre at the Government of British Columbia's website.

 

Terminalling Services - Sturgeon Refinery

Pembina announced on May 21, 2015, that it will provide terminalling services for the North West Redwater Partnership ("North West") with respect to North West's planned refinery (the "Sturgeon Refinery").

The terminalling services will be provided by Pembina to North West under a long term, fixed return agreement and a 10-year fractionation agreement related to the third fractionator Pembina is constructing at its Redwater site.

Pembina expects a capital investment of $180 million will be required to construct the terminalling facilities. The facilities include truck and rail loading, storage, as well as handling and processing equipment for a variety of products delivered from North West. The storage facilities are expected to be in service in early 2017, with the remaining facilities to be phased in with completion expected by late 2017. 
049-Terminalling-Infographic-R3.jpg

Canadian Diluent Hub

Pembina is constructing the Canadian Diluent Hub ("CDH"), a large-scale condensate and diluent terminal at its Heartland Terminal site near Fort Saskatchewan, Alberta.

CDH is expected to be a primary access point for Oilsands producers to source a significant and growing supply of domestically produced condensate from the Montney, Deep Basin and Duvernay developments delivered from Pembina's Peace pipeline and Redwater fractionators.

The CDH development will include 500,000 barrels of above ground storage, multiple inbound and outbound pipeline connections, and associated pumping and metering facilities. Take-away capacity will be in excess of 400,000 barrels per day via delivery to third-party diluent pipelines: IPL Polaris pipeline, Access pipeline, IPL Cold Lake pipeline and Keyera FSPL.
The new facilities augment Pembina's existing diluent handling facilities at RFS, which includes rail import capacity, 500,000 barrels of underground storage and approximately 180,000 bpd of existing delivery capacity to third-party diluent delivery pipelines. The Company expects CDH to become a new market hub for condensate and other diluents by offering customers:
 
  • direct access to a growing and diverse diluent supply through Pembina and third-party pipeline connections;
  • direct connectivity to third-party market terminals and pipelines that supply and serve oil sands producers;
  • marketing services to facilitate supply aggregation; and
  • above ground and cavern storage services.
Construction commenced in May 2016. On June 30, 2017, Pembina placed condensate connections at CDH into service on time and under budget and on September 1, 2017, Pembina placed 500,000 barrels of above ground storage into operation. CDH is also expected to have an additional third-party connection by the end of 2017.