July 2014, Vol. 241, No. 7

Projects

Pembina Pipeline Announces $460 Million In Capital Projects

Pembina Pipeline Corp. has reached binding commercial agreements to proceed with a new 55,000 bpd propane-plus fractionator (RFS III) at its existing Redwater fractionation and storage complex and a high vapor pressure (HVP) pipeline lateral that will extend the gathering potential of its Brazeau Pipeline in the Willesden Green area of south-central Alberta.

RFS III is expected to cost $400 million (including associated caverns and capital previously announced for the RFS III pre-build). The facility will be the third fractionator at Pembina’s Redwater complex and will leverage the design and engineering work completed for Pembina’s first and second fractionators (RFS I and RFS II). RFS I has an operating capacity of 73,000 bpd. RFS I is being debottlenecked to bring capacity to 82,000 bpd by late 2015. When combined with RFS II, which is expected to come into service in late 2015, the company’s fractionation capacity is anticipated to nearly double to 155,000 bpd. With the addition of RFS III, Pembina’s fractionation capacity will total 210,000 bpd in Q3 2017, making the Redwater complex the largest fractionation facility in Canada.

In conjunction with building RFS III, Pembina plans to construct a HVP pipeline lateral, at an estimated cost of $60 million. The project entails installing 56 km of HVP pipeline along with other associated infrastructure. The HVP pipeline will be connected to Pembina’s Brazeau Pipeline.