Pembina, the company building a liquefied petroleum gas (LPG) export terminal on Watson Island, has approved the next phase in its pipeline expansion.
Phase VIII of the Peace Pipeline system was announced on Jan. 31. The $500-million pipeline expansion will address growing customer demands, and production growth in the Montney area. The project is supported by 10-year contracts with take-or-pay provisions, according to the press release from Pembina Pipeline Corporation.
“Our strategic footprint continues to provide opportunities to complete staged expansions, enabling us to deliver timely and reliable transportation service solutions for our customers,” said Mick Dilger, Pembina’s president and CEO, in the press release.
The next phase in Pembina’s pipeline expansion is already being engineered.
Pembina states that it’s ‘ultimate vision’ is to have transportation for segregated liquids — ethane-plus, propane-plus, crude and condensate — across four pipelines between Edmonton and Gordondale, Alberta, and for delivering 1.3 million barrels per day across the Peace Region and northern pipelines.
“Our customers continue to recognize the favorable economics in the Deep Basin and Montney areas and like us are pursuing development with a long-term outlook. Further, they appreciate the new markets we are developing such as the Prince Rupert Export Terminal and the proposed PDH/PP (propane dehydrogenation and polypropylene) facility,” added Mr. Dilger.
The pipeline corporation is a Calgary-based transportation and midstream provider.
In November 2017, Pembina announced that it will pursue developing the $250-million LPG export terminal on Watson Island on land being being leased from the City of Prince Rupert. The terminal will have the capacity of 25,000 barrels a day with LPG being moved from rail cars to smaller bulk carriers to ship to international markets.
“Watson Island where the Prince Rupert Terminal is located is serviced by CN Rail and propane will be shipped primarily from our Redwater facility in Alberta by CN. Pembina’s Redwater facility has one of the largest rail terminals in Canada,” said Sonja Kohlman, analyst, external communications for Pembina Pipeline Corporation.
Pembina broke ground on its Watson Island propane export terminal in July 2018. Since then, the company has done some early construction work and detailed engineering. The company reported in its third quarter financial statement that the project is on track and on schedule, and is expected to be in service by mid-to-late 2019.
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Shannon Lough | Editor
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