Pembina Pipeline has announced its plans to make an investment of C$1.6bn ($1.19bn) in 2019 across various midstream projects and operations, with a major part of it to be allocated for its pipelines division.
The pipeline business of Pembina Pipeline, which has more than 18,000km of pipelines will see an investment of C$900m ($670.9m), representing 53% of the company’s 2019 capital budget. With a total capacity of nearly three million barrels of oil equivalent per day, the pipeline business serves various markets and basins in North America.
The Canadian energy transportation and midstream service provider will spend some part of the investment for the phase VI and VII expansions of the Peace Pipeline System.
The phase VI and VII expansion projects are in progress and are slated to enter into operations in the second half of 2019 and the first half of 2021, respectively.
Phase VII, which was announced in November, will see addition of a new 20inch, 220km or so long pipeline in the LaGlace-Valleyview-Fox Creek corridor along with six new pump stations.
Prior to that, in May, Pembina Pipeline announced Phase VI expansion of the Peace Pipeline System with an investment of around C$280m ($217.52m) to enable additional volume commitments from the Montney and Deep Basin resource plays.
The company will also invest on the NEBC Montney Infrastructure and the Wapiti Condensate Lateral, which are both anticipated to enter into operations in the second half of 2019.
Pembina Pipeline is expected to invest C$425m ($316.8m) on its Facilities Division, which includes processing and fractionation facilities and associated infrastructure that provide natural gas and natural gas liquids (NGL) services.
The midstream company plans to invest C$210m ($156.5m) on development of the Duvernay II and III projects, which includes gas processing, condensate stabilization and associated infrastructure. Duvernay II and III are slated to be commissioned in mid- to late 2019 and mid- to late 2020, respectively.
The company is also looking to invest C$100m ($74.55m) for advancing its proposed Jordan Cove liquified natural gas (LNG) project in Coos Bay in the US state Oregon.
Pembina Pipeline president and CEO Mick Dilger said: “Pembina’s 2019 capital program will advance a significant portfolio of secured growth projects while executing the Company’s strategy to secure global markets for Western Canadian produced hydrocarbons.
“Throughout 2017 and 2018, a total of $5.5 billion of new projects will have been placed into service.”