The new 100 million cubic feet per day (MMcf/d) Duvernay I shallow cut gas plant is planned to enter service in the second half of 2017 and is subject to regulatory and environmental approval.
Besides having natural gas liquids (NGL) extraction capacity of about 5,500 barrels per day (bpd), the project is expected to provide 420,000 bpd of incremental liquids transportation capacity from Fox Creek to Namao.
Additionally, Pembina expects the incremental volumes to serve to further improve its Peace phase III expansion project.
NGL production from the Duvernay I facility will be transported on the company’s Peace Pipeline system under a long-term agreement.
Pembina estimates the Duvernay I project to increase its gas services business to 1.6 billion cubic feet per day of gas processing capacity and produce over 75,000 bpd of NGLs for transportation.
Pembina Pipeline NGL and natural gas facilities senior vice-president Stuart Taylor said: "Pembina is very excited to be able to support the growth of the world class Duvernay resource play through the construction of the facility, which represents the first large-scale gas processing plant to be developed specifically for the Duvernay.
"In-spite of uncertainty in commodity markets, Pembina’s customers continue to remain committed to the development of the Western Canadian Sedimentary Basin."
Additionally, the company executed an agreement for NGL fractionation at its Redwater Fractionation complex.
