Pembina corners chunk of Horizon project

Pembina Pipeline Corp. is the latest to seize an opportunity in northern Alberta’s oil sands, budgeting C$290 million in 2006 on pipeline additions to corner a chunk of the giant C$10.8 billion Horizon project by Canadian Natural Resources.

Through its wholly owned Pembina Pipeline Income Fund, the company will complete the expansion by mid-2008 to coincide with Horizon’s scheduled start-up at 110,000 barrels per day, growing to 232,000 bpd in 2012.

Pembina’s existing 22-inch line will be combined with a new 20-inch system covering 30 miles.

The twinning completion will also entail new construction of about 85 miles of 24-inch and 30-inch pipeline loops which will ship only Syncrude Canada synthetic crude.

Pembina already owns 5,000 miles of pipelines and carries about 657,000 bpd of various crudes and gas liquids.

Once the expansion is completed, Pembina will be able to transport 640,000 bpd of synthetic crude from the oil sands.

Canadian Natural Senior Vice President Real Cusson said the deal gives Horizon access to major sales pipelines out of Edmonton and is economically attractive because it “leverages existing infrastructure.”

—Gary Park