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Pembina to build new gas liquids plant in Alberta

Pembina's operations include more than 8,500 km of pipeline.

Pembina Pipeline Corporation

Pembina Pipeline Corp. plans to build and operate a 200 million cubic feet per day natural gas processing gas liquids plan in the Berland area of west central Alberta.

The project is expected to cost about $200-million, the Calgary-based pipeline and gas processing company said Friday.

The so-called Saturn plant will be connected to Talisman Energy Inc.'s Wild River and Bigstone gas plants through existing and new pipelines.

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Once it is operating, the plant will be able to extract up to 13,500 barrels a day of liquids. Pembina plans to build an 83 kilometre pipeline to ship the liquids to the company's Peace Pipeline for eventual delivery to Edmonton.

Natural gas liquids – like propane, butane and ethane – are fetching robust prices and tend to track oil prices more closely than natural gas prices.

Pembina said it expects the Saturn plant and associated pipelines to be in-service in the fourth quarter of 2013.

Pembina has entered into a long-term, firm service agreement with Talisman, a big natural gas producer.

"The Saturn facility is an exciting gas services and infrastructure project located in an area of strong liquids rich natural gas supply growth," said Bob Michaleski, Pembina's president and chief executive officer.

"This project is consistent with our strategy to optimize our existing asset base and, as is the goal with all of our projects, we will generate additional value through integration with our conventional pipelines and midstream and marketing services."

The Saturn plant, combined with Pembina's Musreau Deep Cut plant and its new Resthaven plant, are expected to expand capacity to 600 million cubic feet of gas a day, adding up to 40,000 daily barrels of gas liquids.

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The new production is expected to add $75-million to $90-million of earnings before interest, taxes, depreciation and amortization a year to the company's books.

Pembina transports crude oil and natural gas liquids produced in western Canada, owns and operates oil sands pipelines and has a growing presence in midstream and gas services.

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