NEW YORK Pembina Pipeline Corp., Calgary, Alberta, has reached binding commercial agreements to proceed with pipeline expansions valued at about Canadian $2 billion ($1.9 billion).
"We are about to embark on the largest expansion the company has ever undertaken, a project which will form the foundation for our companys growth for years to come," chief executive officer Bob Michaleski said.
The core of the expansion is a new 24-inch-diameter pipeline in Alberta running 168 miles from Fox Creek to the Edmonton area. The pipeline, which is expected to be operational between late 2016 and early 2017, will have an initial capacity of around 320,000 barrels per day and an ultimate capacity of more than 500,000 barrels per day.
The expansion also will extend segments of the companys existing pipeline systems from Taylor, British Columbia, to Edmonton.