Pembina’s capital projects – Phase III, RFS III & CDH

14 July 2017

Pembina Pipeline Corporation has announced that it has placed approximately USD 2.8 B of integrated capital projects into service, including its Phase III pipeline expansion and two connected major delivery points: the Company's third fractionator at Redwater ("RFS III") and its Canadian Diluent Hub ("CDH").

Source: Wikimedia Commons

The Phase III Expansion, which is underpinned by long-term contracts was initiated in 2013, included installing over 900 kilometres ("km") of new pipeline primarily along the Company's existing Peace and Northern system rights-of-way, as well as upgrading and adding new mainline pump stations.

In conjunction with the Phase III Expansion, RFS III was also backstopped by long-term, take-or-pay contracts. RFS III added 55,000 bpd of additional propane-plus fractionation capacity and leveraged the designs of Pembina's first and second fractionators.

CDH, which operates commercially as a fee-based hub, provides direct connectivity for growing condensate volumes transported on Pembina's pipeline systems and offers diluent services for oil sands customers.