Pembina Pipeline has deferred work on the next expansions of its Peace Pipeline due to the COVID-19 pandemic and decline in global oil prices. It says spending on Phase VII, VII, and IX will be put off, as it’s uncertain how long the downturn will last.
“In these challenging times, Pembina’s priorities include protecting the health and safety of our staff and communities, ensuring critical infrastructure continues to operate safely and reliably, and maintaining our strong financial position,” says President and Chief Executive Officer Mick Dilger. “We are confident we are taking the necessary steps to allow us to successfully achieve these objectives.”
Pembina had only just approved the eighth phase of the Peace Pipeline in February, at a cost of around $500 million. In total, deferring the three phases represents $1.55 billion of total capital spending.
MyGrandePrairieNow.com has reached out to Pembina to find out if there are any changes to Peace Pipeline Phase VI. As of last update, the upgrades at Gordondale, Alberta, a 16-inch pipeline from La Glace to the Wapiti area, pump station and terminal upgrades, and a 20-inch pipeline from Kakwa to Lator were expected to be in service in stages starting late 2019 through mid-2020.
Phase VII is a new 20-inch, roughly 220-kilometre pipeline in the La Glace-Valleyview-Fox Creek corridor, as well as six new pump stations or terminal upgrades, between La Glace and Edmonton. It had been anticipated to be in service in the first half of 2021.
Phase VIII includes new 10 and 16-inch pipelines in the Gordondale to La Glace corridor, as well as six new pump stations or terminal upgrades located between Gordondale and Fox Creek, Alberta. It would enable segregated pipeline service for ethane-plus and propane-plus NGL mix from the central Montney area at Gordondale, into the Edmonton area for market delivery. It was anticipated to be placed into service in stages starting in 2020 through the first half of 2022, subject to regulatory and environmental approvals.
Phase IX would include new 6-inch and 16-inch pipelines to debottlenecking the corridor north of Gordondaleas well as upgrades at one pump station. It would see existing pipelines, which are currently batching, converted to single product lines. It was hoped to be placed into service in the fourth quarter of 2021, subject to regulatory and environmental approvals.