Long-term agreements underpin new facility near Pembina's Musreau facility
CALGARY, Aug. 9, 2013 /PRNewswire/ - Pembina Pipeline Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA), announced that it plans to construct, own, and operate a new 100 million cubic feet per day ("MMcf/d") shallow cut gas plant ("Musreau II") and associated natural gas liquids ("NGL") and gas gathering pipelines near its existing Musreau facility (part of the Company's Cutbank Complex) in west central Alberta.
Musreau II, which is expected to cost approximately $110 million, is underpinned by long-term contracts with area producers for 100 percent of the facility's capacity. The facility will be designed to extract propane-plus (C 3+) and is expected to yield approximately 4,200 barrels per day of NGL for transportation on Pembina's Conventional Pipelines. The Company expects that volumes from the Musreau II facility will further support its previously announced Conventional Pipeline expansions. Subject to regulatory and environmental approval, Pembina expects Musreau II to be in-service in the first quarter of 2015.
"We are excited to have secured long-term contracts for another field gas processing and gathering infrastructure development and services," said Bob Michaleski, Pembina's Chief Executive Officer. "Musreau II will provide much-needed processing capacity for our customers located in an attractive area with strong liquids-rich natural gas supply growth. Our ability to continue to attract such projects again demonstrates the value of our vertically integrated service offering - volumes from Musreau II will find their way to the Redwater area via our expanded Conventional Pipelines."Pembina's Gas Services business has 368 MMcf/d net shallow cut processing capacity, as well as, 205 MMcf/d of deep cut processing capacity currently in operation, with an additional 200 MMcf/d expected to be on stream in the third quarter of this year (Saturn I), another 200 MMcf/d to be on stream in the third quarter of 2014 (Resthaven) and a further 200 MMcf/d on stream in late 2015 (Saturn II). With the addition of Musreau II, Pembina's gas processing capacity is expected to reach approximately 1.2 billion cubic feet per day by the end of 2015.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV