Calgary-based Pembina Pipeline Corp. has received regulatory approval for a $235 million expansion of its pipeline infrastructure in northeast British Columbia. The company has since initiated construction on the project and anticipates bring the NEBC Expansion onstream by the end of 2017.
“With regulatory sanctioning of the NEBC Expansion, we have secured approvals for the majority of the projects within our conventional pipelines business,” said Paul Murphy, Pembina senior vice president, pipelines and crude oil facilities. “The NEBC Expansion strengthens Pembina’s presence within the prolific geology of northeast B.C. and is located in close proximity to a variety of area producers who may have future transportation needs.”
The project entails the construction of approximately 145 km of 12-in. diameter pipeline, with a base design capacity of up to 75,000 barrels per day (bpd) that will parallel much of the existing Blueberry Pipeline system northwest of Taylor, British Columbia, to the Highway/Blair Creek area of the province, according to a Jan. 5 company statement.
The NEBC Expansion will provide a conduit for natural gas liquids and condensate produced in the liquids-rich Montney resource play to access the company’s downstream pipeline systems that feed into markets in the Edmonton and Fort Saskatchewan, Alberta, area.
Additionally, the Pembina announced an update to a customer relationship. As disclosed earlier this year, one of the company’s customers at its Resthaven gas processing facility filed for receivership. Through the receivership process, Pembina continued to provide gas processing services, while a trustee was engaged as receiver to sell the customer’s assets. The receiver has finalized a purchase and sale agreement with a privately held corporation. As part of this purchase and sale agreement, Pembina expects that all previously executed agreements with Pembina will be assigned and fully assumed without any modifications. The receiver expects to close the transaction in the first quarter of 2017.
“The approval of our NEBC Expansion and impending resolution to this receivership are a great start to 2017,” said Mick Dilger, Pembina’s president and CEO. “We are looking forward to the year ahead and the transformation it will bring for our company and our shareholders as we bring the bulk of our assets under construction into service and start generating associated cash flows.”
Pembina is a leading transportation and midstream service provider that has been serving the North American energy industry for more than 60 years. The company owns and operates an integrated system of pipelines that transport various products derived from natural gas and hydrocarbon liquids produced primarily in western Canada. The company also owns and operates gas gathering and processing facilities and an oil and natural gas liquids infrastructure and logistics business. Pembina’s integrated assets and commercial operations along the entire hydrocarbon value chain allow it to offer a full spectrum of midstream and marketing services to the energy sector.