Pembina Pipeline Corp. plans to add two more oil pipelines to its $2 billion Phase III expansion. The company said it would build a new 16-inch-diameter pipeline from Fox Creek, Alberta, to Namao, Alberta, and a new 12-inch-diameter pipeline from Wapiti, Alberta, to Kakwa, Alberta.
The 16-inch pipeline will be built in the same right-of-way as Pembina’s previously announced 24-inch pipeline from Fox Creek to Namao. The two Fox Creek-to-Namao pipelines will have a combined initial capacity of 420,000 barrels per day, expandable to over 680,000 barrels per day.
The Wapiti-to-Kakwa pipeline is intended to debottleneck a portion of Pembina’s existing system and allow product to flow to the Fox Creek-to-Namao system. It will have an initial capacity of 95,000 barrels per day. The Wapiti-to-Kakwa pipeline is expected to be in service by mid-2017.
The expansions will add $435 million in capital spending to the project. Last week, Pembina applied to provincial regulators for permission to build the 24-inch Fox Creek-to-Namao pipeline.
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