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Pembina Places Pipeline Expansion into Service

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Pembina Pipeline Corp. placed into service an expansion to its Peace Pipeline System in northern Alberta.

The expansion was part of the company’s Phase II initiative, comprised of a low vapor pressure (LVP), crude oil and condensate pipeline, called the Phase II LVP Expansion.

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Pembina construction at Judy Creek, Alberta. The Phase II LVP Expansion added 55,000 bpd capacity on the Peace system in northern Alberta.

Pembina construction at Judy Creek, Alberta. The Phase II LVP Expansion added 55,000 bpd capacity on the Peace system in northern Alberta.

The Phase II LVP Expansion, which is underpinned by long-term contracts with Pembina’s customers, was commissioned on April 8 and was placed into service on April 24, adding an incremental 55,000 barrels per day (bpd) on the company’s Peace Pipeline System and bringing total capacity on this line to more than 250,000 bpd.

“We are very pleased to be placing this expansion into service as it will help alleviate volume constraints on our systems for our customers,” said Jason Wiun, Pembina’s vice president of conventional pipelines. “With the additional capacity this expansion will provide, we’re better able to get our customers’ product to market. Further, the completion of this project is good news for our shareholders as it adds to our growing fee-for-service-based cash flow stream.”

Including capital to be spent on post-construction cleanup, Pembina expects the cost of the Phase II LVP Expansion to be $350 million.

“I am happy to report that the Phase II LVP Expansion was completed on budget with an impressive safety record,” said Pembina president and CEO Mick Dilger. “Employees worked over 350,000 man hours on this project and drove over 1.8 million km with no lost time injuries, yet another demonstration of Pembina’s commitment to executing our growth projects safely and responsibly.

“Our other pipeline expansion programs are also progressing well,” Dilger added. “So far in 2015, we’ve brought into service 70 km of new pipeline associated with our Phase III crude oil, condensate and natural gas liquids expansion and we’re on track to bring the 53,000 bpd natural gas liquids component of the Phase II expansion into service in the third quarter of this year. These projects are directly aligned with our goal of meeting our customers’ needs through a truly integrated approach across the value chain.”

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