Pembina Places $650 Million Of New Assets Into Service

In late August, Pembina commissioned its Saturn II facility, a 200-MMcfd twin of the company’s existing Saturn I, ahead of schedule and under budget. Pembina’s Saskatchewan ethane extraction plant (SEEP) was also commissioned in late August. SEEP was acquired as part of a 2014 Vantage Pipeline acquisition. The facility has a deep-cut processing capacity of 60 MMcfd and ethane-plus fractionation capabilities that support up to 4500 bbld of ethane extraction. Ethane volumes produced at SEEP will be transported under a long-term, fee-for-service agreement on the Vantage Pipeline.

In addition, Pembina has placed into service the gathering pipeline associated with the 100-MMcfd Resthaven expansion project. The project includes a 12-in.-dia., 28-kilometer pipeline with capacity to deliver 100 MMcfd that will connect to a condensate recovery plant to Resthaven. In advance of the expected in-service date for the expansion, the pipeline will be able to provide additional gas volumes to Pembina’s existing Resthaven facility. Construction of the expansion is under way and is expected to be operational by mid-2016. Once the Resthaven expansion is complete, the facility’s gross gas processing capacity will increase to 300 MMcfd.

In the beginning of September, Pembina commissioned the high-vapor-pressure, or NGL, portion of the Peace and Northern Phase II pipeline expansion, and expects to have the pipeline fully commissioned by the end of the year. The move is in conjunction with the low-vapor-pressure, or crude oil and condensate, portion of the expansion that was placed into service in April. In aggregate, the Phase II expansion and all associated laterals represent an approximate $670 million investment, of which about $340 million is attributable to the Phase II low-vapor-pressure project.

In the coming months, Pembina will be commissioning a number of projects in its NGL midstream business. Early in 2016, the company plans to commission the twin of its existing 73,000-bbld ethane-plus fractionator. Completion will further strengthen Pembina’s position as western Canada’s largest owner of fractionation capacity. Additionally, a small-scale initiative to modestly increase propane-plus throughput capacity at Pembina’s Redwater fractionator is expected to be commissioned soon. Finally, at the Corunna site, construction and commissioning of new brine pond, storage, rail, and truck infrastructure is well under way. The new assets are expected to be phased into service through the remainder of 2015 and 2016.