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Pembina Pipeline places pipeline expansion into service

Pembina Pipeline Corp. placed its Phase II low vapor pressure, crude oil and condensate pipeline expansion into service.
Pembina Pipeline places pipeline expansion into service

Pembina Pipeline Corp. placed its Phase II low vapor pressure (LVP), crude oil and condensate pipeline expansion (Phase II LVP Expansion) into service.

The Phase II LVP Expansion, which is underpinned by long-term contracts with Pembina's customers, was commissioned on 8 April 2015 and was placed into service on 24 April, adding an incremental 55,000 b/d on the company's Peace Pipeline System and bringing total capacity on this line to over 250,000 b/d.

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

"We are very pleased to be placing this expansion into service as it will help alleviate volume constraints on our systems for our customers," Jason Wiun, Pembina vice president, conventional pipelines said. "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."

Pembina said employees worked over 350,000 man-hours on this project and drove over 1.8 million km with no lost time injuries.

"Our Pembina pipeline expansion programs are also progressing. So far in 2015, Pembina has brought into service 70km of new pipeline associated with its Phase III crude oil, condensate and natural gas liquids expansion and the company is on track to bring the 53,000 b/d natural gas liquids component of the Phase II expansion into service in 3Q 2015.

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