An expansion of a pipeline in the Peace country is moving ahead. Pembina Pipeline Corporation says it has approved adding on to its Peace Pipeline system.
It’s considered the eighth phase of the project and is estimated to cost around $500 million. It will include new 10 and 16-inch pipelines in the corridor between Gordondale and La Glace and six new pump stations or terminal upgrades between Gordondale and Fox Creek.
“Our customers continue to recognize the favourable economics in the Deep Basin and Montney areas and like us are pursuing development with a long-term outlook,” says Pembina’s President and Chief Executive Officer Mick Dilger.
Pembina explains that the work will give it separate pipelines for ethane-plus and propane-plus natural gas liquids mix to be moved from the central Montney area to market in the Edmonton area. It’s expected most of the spending will happen in 2020 and 2021.
“The Phase VIII expansion is an exciting development as we are nearing our ultimate goal of achieving full product segregation along the entire Peace Pipeline system,” adds Pembina’s Senior Vice President and Chief Operating Officer of Pipelines Jason Wiun.
It’s anticipated the phase will come into service in stages from 2020 through the first half of 2022, as long as it’s given regulatory and environmental approvals. Pembina says the expansion is supported by 10-year contracts.