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Released December 09, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Pembina Pipeline Corporation (NYSE:PBA) (Calgary, Alberta) on Wednesday pegged its 2022 capital investment program at C$655 million (US$517.8 million), while providing clarification on spending related to its multi-phase, years-long Peace Pipeline Expansion program in Alberta. Pembina expects to see solid production growth in the Montney and Alberta Duvernay shale areas, as well as stronger feedstock demand from "a resurgent Alberta petrochemical industry." Industrial Info is tracking more than US$2.4 billion worth of active projects from Pembina.
Click on the image at right for a map of Pembina's active projects in the U.S. and Canada.
Pembina expects its 2022 earnings will enjoy full-year contributions from assets placed into service in 2021, including its Prince Rupert Terminal on the coast of British Columbia, which began operations in April. Pembina also is proposing an expansion at Prince Rupert that would increase its propane-exporting capacity from 25,000 to about 40,000 barrels per day (BBL/d). A final investment decision is expected in early 2022. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can learn more from a detailed project report.
Pembina's 2022 capital investment program is down from the C$785 million (US$620.3 million) budgeted for 2021.
Pembina also clarified some of the challenges facing its Peace Pipeline Expansion project, a long-term project to extend the system that delivers crude oil, condensate and natural gas from northwestern Alberta to Edmonton and Fort Saskatchewan, Alberta. Pembina lowered the estimated cost for Phase VII of the expansion, which is expected to begin service in mid-2022, by C$110 million (US$87 million) to C$665 million (US$525.7 million). While Phase VII is ahead of schedule, compared with its previous in-service date in the first half of 2023, Phase VIII remains deferred.
Phase VIII was deferred in second-quarter 2020 amid the COVID-19 pandemic and a decline in commodity prices. On Wednesday, executives at Pembina cited ongoing negotiations between provincial governments and First Nations communities as a major reason for continuing to delay a final reactivation decision on Phase VIII, previously expected in fourth-quarter 2021 and now expected in first-half 2022. However, they also said initial contracts supporting Phase VIII "remain intact, and customers continue to signal plans that will necessitate the incremental capacity."
Phase VIII includes construction of an 85-mile line from Gordendale to Fox Creek, Alberta, along with a series of new pump stations or terminal upgrades in the same area. The new line is expected to transport up to 160,000 BBL/d of crude oil, as well as enable segregated pipeline service for ethane-plus and propane-plus natural gas liquid (NGL) mixes. Subscribers can read detailed project reports on the Phase VIII line and pump-station additions in Gordondale, Beaverlodge, Grande Prairie, Grande Cache and Fox Creek.
Phase IX remains on-time and on-budget, with an expected in-service date in second-half 2022, according to Pembina. Phase IX includes a 55-miles line from Gordondale to LaGlace, Alberta, to transport up to 195,000 BBL/d of crude oil, to be accompanied by a new pump station in Gordondale. Pembina says Phase IX will convert existing pipelines, which currently use single lines to ship different products, to single-product lines. Subscribers can read detailed project reports on the Phase IX line and pump station.
The Alliance Pipeline, which Pembina owns in a 50:50 partnership with Enbridge Incorporated (NYSE:ENB) (Calgary), now has 76% of its full-path capacity under contract, according to Wednesday's announcement. The pipeline transports 1.6 billion standard cubic feet per day of liquids-rich natural gas from northeastern British Columbia, northwestern Alberta and North Dakota through south-central Canada and the north-central U.S. to Chicago, Illinois.
Pembina and Enbridge are constructing a series of compressor stations to expand capacity on the Alliance Pipeline from 1.6 billion to 2 billion standard cubic feet per day. Subscribers can read detailed project reports on the additions near Bethune, Saskatchewan; Estevan, Saskatchewan; Valley City, North Dakota; Faribault, Minnesota; and Durant, Iowa.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects from Pembina.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Click on the image at right for a map of Pembina's active projects in the U.S. and Canada.Pembina expects its 2022 earnings will enjoy full-year contributions from assets placed into service in 2021, including its Prince Rupert Terminal on the coast of British Columbia, which began operations in April. Pembina also is proposing an expansion at Prince Rupert that would increase its propane-exporting capacity from 25,000 to about 40,000 barrels per day (BBL/d). A final investment decision is expected in early 2022. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can learn more from a detailed project report.
Pembina's 2022 capital investment program is down from the C$785 million (US$620.3 million) budgeted for 2021.
Pembina also clarified some of the challenges facing its Peace Pipeline Expansion project, a long-term project to extend the system that delivers crude oil, condensate and natural gas from northwestern Alberta to Edmonton and Fort Saskatchewan, Alberta. Pembina lowered the estimated cost for Phase VII of the expansion, which is expected to begin service in mid-2022, by C$110 million (US$87 million) to C$665 million (US$525.7 million). While Phase VII is ahead of schedule, compared with its previous in-service date in the first half of 2023, Phase VIII remains deferred.
Phase VIII was deferred in second-quarter 2020 amid the COVID-19 pandemic and a decline in commodity prices. On Wednesday, executives at Pembina cited ongoing negotiations between provincial governments and First Nations communities as a major reason for continuing to delay a final reactivation decision on Phase VIII, previously expected in fourth-quarter 2021 and now expected in first-half 2022. However, they also said initial contracts supporting Phase VIII "remain intact, and customers continue to signal plans that will necessitate the incremental capacity."
Phase VIII includes construction of an 85-mile line from Gordendale to Fox Creek, Alberta, along with a series of new pump stations or terminal upgrades in the same area. The new line is expected to transport up to 160,000 BBL/d of crude oil, as well as enable segregated pipeline service for ethane-plus and propane-plus natural gas liquid (NGL) mixes. Subscribers can read detailed project reports on the Phase VIII line and pump-station additions in Gordondale, Beaverlodge, Grande Prairie, Grande Cache and Fox Creek.
Phase IX remains on-time and on-budget, with an expected in-service date in second-half 2022, according to Pembina. Phase IX includes a 55-miles line from Gordondale to LaGlace, Alberta, to transport up to 195,000 BBL/d of crude oil, to be accompanied by a new pump station in Gordondale. Pembina says Phase IX will convert existing pipelines, which currently use single lines to ship different products, to single-product lines. Subscribers can read detailed project reports on the Phase IX line and pump station.
The Alliance Pipeline, which Pembina owns in a 50:50 partnership with Enbridge Incorporated (NYSE:ENB) (Calgary), now has 76% of its full-path capacity under contract, according to Wednesday's announcement. The pipeline transports 1.6 billion standard cubic feet per day of liquids-rich natural gas from northeastern British Columbia, northwestern Alberta and North Dakota through south-central Canada and the north-central U.S. to Chicago, Illinois.
Pembina and Enbridge are constructing a series of compressor stations to expand capacity on the Alliance Pipeline from 1.6 billion to 2 billion standard cubic feet per day. Subscribers can read detailed project reports on the additions near Bethune, Saskatchewan; Estevan, Saskatchewan; Valley City, North Dakota; Faribault, Minnesota; and Durant, Iowa.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects from Pembina.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
