Pembina Pipeline Corporation announced that it will expand its existing Horizon Pipeline System for an estimated capital cost of approximately CAN$125 million.
The Horizon Expansion will increase the pipeline's capacity up to 250 000 bpd, which will be achieved predominantly through the upgrading of mainline pump stations and other facility modifications, as required. Subject to regulatory and environmental approvals, the Horizon Expansion is expected to be in service mid-2016.
Andrew Gruszecki, Pembina's Vice President, Oil Sands & Heavy Oil, commented: "The Horizon Expansion reinforces the strategic nature of Pembina's existing Oil Sands & Heavy Oil asset base. Furthermore, the Horizon Expansion, which is underpinned by a long-term agreement, will be beneficial to our shareholders by adding to our growing cost-of-service, low-risk cash flow streams."
Horizon, a 513 km pipeline, was originally commissioned in 2008 and built to connect Canadian Natural Resources Limited's Horison Oil Sands facility to refineries, export pipelines and other delivery location in the Edmonton area. Horizon is operated under the terms of a 25 year fixed return contract, which expires in 2034.
Adapted from press release by Hannah Priestley-Eaton