Pembina will proceed with construction on a 55,000 bbl/day propane-plus fractionator at its existing Redwater fractionation and storage complex, said the company.
The project updates were included in the company’s Q4 earnings press release. The new fractionator will be RFS IV.
“The Redwater Complex is underpinned by long-term take-or-pay contracts and in recent quarters, Pembina has successfully extended existing contracts and signed incremental new contracts,” the company said. The existing facility is highly utilised and RFS IV is needed to meet customer demand, Pembina executives said.
Existing infrastructure at the Redwater Complex, including storage caverns and extensive unit train capable rail facilities, provide Pembina an ability to offer incremental fractionation capacity at a competitive cost.
RFS IV is expected to cost about USD460m and will leverage the design, engineering and operating best practices of its existing facilities, Pembina said. The project includes additional rail loading capacity at the Redwater Complex.
As per MRC, Pembina Pipeline and Inter Pipeline (IPL) are mulling the prospects of dehydrogenation/polypropylene (PDH/PP) production in Alberta province. On May 31, 2021, Pembina and Inter Pipeline entered into an agreement (the "Strategic Combination") to create one of the largest and best positioned energy infrastructure companies in Canada. Together the companies' diversified and integrated asset base can support and grow an extensive value chain for natural gas, natural gas liquids and crude oil, from wellhead to end user, that far exceeds anything either company can do separately.
Pembina Pipeline has been a gas supplier to the North American power system for over 60 years. Pembina owns and operates pipelines that transport a variety of hydrocarbon fluids, including conventional and synthetic crude oil and others, produced in Western Canada and North Dakota.
mrchub.com