Pembina Pipeline Corp. (TSX: PPL) plans to construct, own and operate the Saturn Facility, a 200 million cubic feet per day (MMcf/d) enhanced natural gas liquids extraction plant and associated NGL and gas gathering pipelines in the Berland area of west central Alberta.
The Saturn Facility will be connected to Talisman Energy Inc.'s Wild River and Bigstone gas plants through existing and newly constructed gas gathering lines. Once operational, Pembina expects the Saturn Facility will be able to extract up to 13,500 barrels per day (b/d) of liquids. Pembina plans to construct an 83 kilometer, eight-inch NGL pipeline to transport the extracted NGL from the Saturn Facility to Pembina's Peace Pipeline, which delivers product into Edmonton, Alberta.
Pembina expects the Saturn Facility, associated NGL and gas gathering pipelines and storage to cost approximately $200 million and contribute annual EBITDA of approximately $30 million (including pipeline tolls). Subject to regulatory and environmental approval, Pembina expects the Saturn Facility 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.
"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. "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 Facility, combined with Pembina's Musreau Deep Cut Facility and its recently announced Resthaven Facility, are expected to bring Pembina's total enhanced NGL extraction capacity to approximately 600 MMcf/d, which could add up to approximately 40,000 b/d of NGL for transportation on Pembina's conventional pipelines by the end of 2013, and contribute $75 million to $90 million of EBITDA annually. To accommodate this expected volume increase, Pembina is currently assessing its mainline capacity to determine potential expansion requirements.
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