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Pembina Pipelines building regional headquarters in Alberta

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Pembina Pipelines Corp. has started construction of a new building in Sherwood Park, Alberta which will consolidate regional operations on a single campus and facilitate the company's growth plans.

Pembina Pipelines Corp. has started construction of a new building in Sherwood Park, Alberta which will consolidate regional operations on a single campus and facilitate the company's growth plans.

“Pembina has significant growth plans and the hub of our operations is in the Sherwood Park community,” said Mick Dilger, president and CEO of Pembina in a press release.

“This new facility will accommodate our current operations and facilitate collaboration and efficiency within our business as we continue to grow.”

The $35 million building will be located in the Buckingham Business Park and will serve about 150 employees.

It will have 5,000 square feet of office space, as well as 40,000 square feet of warehouse space.

Construction of the facility officially began earlier this month.

The building is scheduled to be open in the second quarter of 2015.

Calgary-based Pembina owns and operates pipelines that transport conventional and synthetic crude oil, heavy oil and oilsands products and natural gas liquids produced in western Canada.

The conventional pipelines are feeder pipelines that move products from batteries, processing facilities and storage tanks in the field to markets and export pipelines in Edmonton and Fort Saskatchewan, Alberta.

The company also owns and operates gas gathering and processing facilities, as well as oil and natural gas liquids infrastructure and logistics businesses.

According to Pembina’s 2013 annual report, last year was the most growth-oriented year in the company’s 60 year history.

The growth plan initiated by Pembina last year involves an estimated capital expenditure of $3.5 billion, with a portion of these projects subject to regulatory approval, over the next several years.

Pembina announced it had reached agreements with 30 customers on Dec. 16, 2013, to proceed with the construction of about $2 billion in pipeline expansions.

For example, the Phase III Expansion is a 540 kilometre project that will follow and expand certain segments of an existing pipeline system from Taylor, B.C. to Edmonton.

The core of the Phase III Expansion involves the construction of a new 270 km, 24 inch diameter pipeline from Fox Creek, Alberta to the Edmonton area.

This pipeline is expected to have an initial capacity of 320 million barrels per day (MMbd) and an ultimate capacity of more than 500 MMbd with the addition of midpoint pump stations.

As a result of this expansion, Pembina revised its 2014 capital budget to about $1.7 billion from $1.5 billion.

The project is expected to be in-service between late-2016 and mid-2017, subject to environmental and regulatory approvals.

After the Phase III expansion is completed, Pembina will have three pipelines in the Fox Creek to Edmonton corridor.

These pipelines will be part of the Peace and Northern systems and are expected to have the capacity to transport up to about 1,000 MMbd, with the company’s existing pipelines and current expansions.

Pembina announced on March 5, 2013 that the company will proceed with a $1 billion expansion of its Natural Gas Liquids (NGL) infrastructure, which consists of three components.

First, the twinning of the Saturn II Facility to extract valuable NGL from raw gas streams in the Berland area of Alberta. The facility will produce 200 million cubic feet per day and cost of about $170 million.

The facility will leverage the engineering work completed for the Saturn I Facility and is expected to be in-service by late-2015.

Pembina has received the required regulatory and environmental approvals and is progressing construction of the facility with more than 65 per cent of the major equipment ordered. Next, Pembina is twinning of its 73,000 barrel per day ethane-plus fractionator at its Redwater site, near Fort Saskatchewan, Alberta

Subject to regulatory and environmental approvals, Pembina expects this project to be in-service late in the fourth quarter of 2015 at an estimated cost of $415 million.

Finally, the Pembina is undertaking the Phase II NGL pipeline capacity expansion of its Peace/Northern NGL System to accommodate increased NGL volumes.

The $415 million Phase II NGL Expansion will increase capacity to 220,000 bpd from 167,000 bpd.

by Richard Gilbert

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