CALGARY, ALTA. — Calgary-based Pembina Pipeline Corporation’s board of directors has approved a capital program of $1.3 billion for 2018, including $400 million for new capital projects.
New projects include the Prince Rupert LPB Export Terminal, a liquified petroleum gas (LPG) facility located on Watson Island, B.C. The terminal is expected to have a permitted capacity of approximately 25,000 barrels of LPG per day and is scheduled to go into service in mid-2020, with an estimated capital cost of $270 million, explains a release.
“Since our initial announcement of potentially developing the Prince Rupert Terminal, we’ve worked diligently with municipal and other stakeholders and are now able to move forward with our final investment decision,” said Stuart Taylor, Pembina senior vice-president, NGL and natural gas facilities, in a statement.
The board of directors have also sanctioned development of the North Central Liquids Hub, a $320-million capital project that provides separation and stabilization of increased condensate volumes from the Cutbank Ridge Partnership to support the Sunrise and Saturn gas plants located on the Montney formation, a 130,000-square-kilometre region spanning northeast B.C. to northwest Alberta.
Pembina also plans to spend approximately $540 million on conventional pipelines in the next year, comprising 40 per cent of its overall 2018 capital spending plan. It will also spend $260 million on its Midstream business, the largest component of which will be $80 million towards initial development and construction of the Prince Rupert terminal and $30 million for the completion of the Burstall Storage Cavern, an ethane storage facility in Saskatchewan.
The corporation also plans to spend $175 million on development and construction of a 100-million-cubic-feet per day Duvernay II gas plant at the Duvernay Complex in west central Alberta as well as $20 million on its oilsands and heavy oil business.
“2017 has been a transitional year in Pembina’s history. Since the beginning of 2015, we have placed approximately $8 billion of predominately contracted assets into service, marking the culmination of an unprecedented growth strategy implemented in 2013,” said Pembina president and CEO Milk Dilger.
“In addition, we also completed the largest corporate acquisition of our company’s history during the year. We expect to continue this positive momentum into 2018, as we remain focused on completing the remaining growth portfolio and advancing our strategy of creating new market access for our customers.”