October 28, 2011 / 11:04 AM / 6 years ago

UPDATE 1-Pembina to build new C$200 mln natgas liquids facility

* Follows alerts

Oct 28 (Reuters) - Canada’s Pembina Pipeline Corp said it will build a natural gas liquid extraction, transportation and storage facility for about C$200 million in west central Alberta.

The company, which operates several conduits that transport crude oil and gas liquids to major pipeline hubs, storage facilities and refineries, said the 200 million cubic feet per day (mmcf/d) facility will be connected to Talisman Energy Inc’s Wild River and Bigstone gas plants.

The agreement follows a similar deal with Encana , where Pembina will invest C$230 million to expand its Resthaven plant’s processing and extraction capacity of natural gas liquids, as it bolsters it presence in the premium natural gas liquids market.

Natural gas liquids, which can be stripped off components such as ethane, sell at a premium to dry gas.

The Saturn Facility, combined with Pembina’s Musreau Deep Cut Facility and Resthaven Facility, are expected to bring Pembina’s total enhanced natural liquid extraction capacity to about 600 mmcf/d.

It expects all the three facilities to add up 40,000 barrels per day (bpd) of NGL and contribute C$75-C$90 million of EBITDA annually once the Saturn Facility is operational in the fourth quarter of 2013 and is extracting up to 13,500 bpd.

Pembina plans to construct an 83 kilometre, 8 inch pipeline to transport the extracted liquid from the facility to Pembina’s Peace Pipeline, which delivers product to Edmonton, Alberta.

The facility will contribute about C$30 million to company’s annual EBITDA, Pembina said in a statement.

Reporting by Aftab Ahmed in Bangalore; Editing by Saumyadeb Chakrabarty

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below