Pembina Pipeline Ratchets Up Work at Natural Gas, NGL Projects, Eyes Export Terminal at Prince Rupert

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Researched by Industrial Info Resources (Sugar Land, Texas)--Pembina Pipeline Corporation (NYSE:PBA) (Calgary, Alberta) is moving aggressively on plans to develop its natural gas and natural gas liquids (NGL) capacity in Western Canada, in addition to plans to construct another export terminal in the rapidly developing Prince Rupert area and a world-class polypropylene facility. Industrial Info is tracking $5.58 billion in active projects involving Pembina.

Pembina announced that it making strides on its engineering work at its properties in Western Canada's Duvernay Formation. The company has begun preliminary engineering for substantial liquids handling and stabilization at its $130 million Duvernay I Shallow Cut Gas-Processing Plant near Fox Creek, Alberta, which is expected to have a capacity of 100 million standard cubic feet per day of natural gas and 5,500 BBL/d of NGL, to be produced from the Duvernay Shale. Pembina says the Duvernay I facility, along with the associated field hub, is expected to begin service on time and on budget in the fourth quarter of 2017. For more information, see Industrial Info's project report.

Pembina also said it is nearing the engineering work at its $130 million Duvernay II Shallow Cut Gas-Processing Plant, which it calls a "replica" of Duvernay I; it also is expected to have a capacity of 100 million standard cubic feet per day of natural gas and 5,500 BBL/d of NGL, to be produced from the Duvernay Shale. For more information, see Industrial Info's project report.

The company also is constructing a 35-kilometer, $45 million pipeline from Duvernay I to Fox Creek, Alberta, with an initial capacity of 15,000 BBL/d of butane and other NGLs. It is expected to be completed later this year. For more information, see Industrial Info's project report.

"Our strategic position in the prolific, liquids-rich areas of the Alberta Montney and Duvernay continues to provide opportunities for us to expand our service offering for our customers," said Jaret Sprott, the vice president of Pembina's Gas Services, in a press release. "We are very encouraged by the increasing level of activity in the areas of our existing and planned facilities."

Pembina also announced that it has signed a non-binding letter of intent with Prince Rupert Legacy Incorporated, a subsidiary of the City of Prince Rupert, to develop the West Coast Terminal on Watson Island, on lands owned by Prince Rupert Legacy. The company believes the island is ideal for 20,000-BBL/d LPG export terminal, at a cost of roughly $125 million to $175 million.

Farther south, Pembina has proposed a $500 million Propane Export Terminal in Kennewick, Washington. The proposed facility, which would be built on the Columbia River, would have a capacity of 37,500 BBL/d of liquid propane, transported via rail from Pembina's Redwater Facility northeast of Edmonton. The propane would be unloaded, chilled and stored for 15 days in aboveground refrigerated holding tanks, before being loaded onto ships for export to global markets. For more information, see Industrial Info's project report.

"Watson Island has promising potential as an LPG export terminal location," said Stuart Taylor, Pembina's senior vice president for NGL & Natural Gas Facilities, in the press release. "In light of our plans to develop a world-scale polypropylene production facility, the smaller export facility we are contemplating for Watson Island -- utilizing smaller ships and ensuring very competitive per-unit export facility costs -- makes good sense for Pembina."

Taylor was referring to Pembina' proposed, $2.5 billion Alberta Propane Dehydrogenation (PDH) and Polypropylene Plant in Fort Saskatchewan, Alberta. As currently envisioned, the facility would consume roughly 35,000 BBL/d of propane to produce 800,000 metric tons per year of polypropylene. For more information, see Industrial Info's project report.

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