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Pembina goes ahead with Nipisi, Mitsue lines Add to ...

- Pembina Pipeline Income Fund says it will go ahead with construction of the Nipisi and Mitsue pipeline systems and a related truck terminal in northern Alberta, to be built at a total cost of $400-million..

The Nipisi system will consist of a combination of existing and new pipelines, that will move have capacity to move 100,000 barrels per day of heavy oil from Utikuma, Alta., to Edmonton.

The Mitsue system will also consist of combination of new and existing pipelines that will transport condensate, used in the extraction of heavy oil, from Whitecourt, Alta., to Utikuma. It will have capacity of 22,000 barrels per day of condensate.

Pembina also plans to build a truck terminal and trim blending facility, the Utikuma Terminal.

All the facilities are expected to be in service by mid-2011, the company said.

Pembina has contracted the use of 80 per cent of available capacity on the Nipisi pipeline and 50 per cent on the Mitsue pipeline. Capacity on each line is expandable by 50 per cent, primarily by the addition of pumping stations.

Canadian Natural Resources Ltd. and EnCana Corp. have committed for initial 10-year shipping agreements, with extension rights.



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