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.

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

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. Subject to regulatory and environmental approval, Pembina anticipates bringing the NEBC Expansion on-stream in late 2017.

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.

 

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. Pembina expects RFS III to cost approximately $400 million and, subject to regulatory and environmental approval, to be in-service in the third quarter of 2017.

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, is expected to have NGL extraction capacity of approximately 5,500 bpd, subject to gas compositions. Pembina anticipates bringing Duvernay I in service in the second half of 2017.

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. To align with Duvernay I, Pembina anticipates bringing the Field Hub and associated infrastructure into service in the second half of 2017.  

Additionally, Pembina executed a long-term, fee-for-service gas processing agreement at the Duvernay I facility. With this agreement, Duvernay I is now fully contracted and Pembina has begun preliminary engineering for a 'twin' Duvernay II facility.

Duvernay I Infrastructure and Agreements News Release
Construction at our Musreau II Facility
Construction at our Resthaven Facility
Resthaven - Drone Aerial Footage
Video of Resthaven Stack Lift

Vantage Expansion

On February 10, 2015, Pembina announced that we plan to expand the Vantage pipeline system, which we acquired in September 2014, for an estimated capital cost of $85 million.

The Vantage Expansion entails increasing Vantage's mainline capacity from 40,000 barrels per day to approximately 68,000 barrels per day through the addition of mainline pump stations and the construction of a new 80 kilometre, 8-inch gathering lateral.

The Vantage mainline expansion is supported by a long-term, fee-for-service agreement, with a substantial take-or-pay component, and the gathering lateral is underpinned by a fixed return on invested capital agreement. The Vantage Expansion was placed into service in the third quarter of 2016.

Horizon Pipeline Expansion

Pembina announced on June 4, 2015 that it will expand its existing Horizon Pipeline System ("Horizon") (the "Horizon Expansion") for an estimated capital cost of approximately $125 million.
The Horizon Expansion will increase the pipeline's capacity up to 250,000 barrels per day, which will be achieved predominantly through the upgrading of mainline pump stations and other facility modifications, as required. The Horizon Expansion was placed into service in July 2016.

Horizon, a 513 kilometre pipeline, was originally commissioned in 2008 and built to connect Canadian Natural Resources Limited's Horizon Oil Sands facility to refineries, export pipelines and other delivery locations in the Edmonton area. Horizon is operated under the terms of a 25-year fixed return contract, which expires in 2034. 

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. Pembina anticipates full connectivity and service offerings through CDH in mid-2017.