CALGARY, Alberta, Dec 16 (Reuters) - Pembina Pipeline Corp plans a C$2 billion expansion of its regional pipeline network in Western Canada to take crude oil and natural-gas liquids from northwest Alberta and northeastern British Columbia to the Edmonton, Alberta, processing hub, the company said on Monday.
Pembina’s Phase III expansion will include building a 270-kilometer (167-mile) pipeline from Fox Creek in northern Alberta to Edmonton with a capacity of 320,000 barrels per day, which could eventually be expanded to 500,000 bpd.
Other new lines will boost Pembina’s capacity to handle crude oil and natural-gas liquids from the burgeoning Montney shale field in northeastern British Columbia and the Duvernay shale field in western Alberta.
Now in the early stages of development, production from Western Canada’s shale fields is expected to grow as oil and gas producers such as Exxon Mobil Corp, Chevron Corp , Encana Corp and others increase drilling in the liquids-rich fields.
Pembina said its customers have signed binding 10-year contracts for 75 percent of the new capacity, which will be built in 2015 and 2016.
Pembina shares were up 29 Canadian cents to C$34.35 by late morning on the Toronto Stock Exchange.