SHARE
Image courtesy of Pembina Pipeline.

Calgary-based Pembina Pipeline expanded its planned Phase III expansion Thursday to add two new pipelines that will boost the project’s total capacity by 680,000 barrels a day.

Pembina will construct a 16 inch diameter pipeline from Fox Creek, Alberta into Namao, Alberta and a 12 inch diameter pipeline from Wapiti, Alberta into Kakwa, Alberta.

The two new pipelines will tack on about $435 million to the expansion’s price tag. The total estimated cost of the Phase III expansion is now $2.44 billion.

The Fox Creek pipeline will span approximately 167 miles and will be built in the same right-of-way as the proposed 24 inch diameter pipeline from Fox Creek to Namao.

The Wapiti pipeline will relieve bottlenecking at a portion of Pembina’s existing pipeline system.

Relieving the bottleneck will allow products to be delivered into the core segment of the Phase III expansion between Fox Creek and Nama, the company said.

The Wapiti pipeline will be approximately 44 miles long and is expected to have an initial capacity of about 95,000 bpd.

Pembina expects the two pipelines to initially have a combined capacity of 420,000 barrels per day and an ultimate capacity of over 680,000 bpd with the addition of midpoint pump stations.

Since December 2013, Pembina has secured an additional 59,000 bpd under contract.

Total volumes under contract are approximately 289,000 bpd, or 69 percent of the initial combined capacity.

As part of the project, Pembina also plans to build two new pump stations.

Pembina expects the Wapiti pipeline to be online by either late 2016 or the middle of 2017, consistent with the timing of the initial expansion.

The expansion is still subject to regulatory approval.