Midstream service provider Pembina Pipeline (NYSE:PBA) announced it was conducting an open season to gauge the interest in the expansion of its crude oil, condensate, and natural gas liquids pipelines in northwest Alberta. Oil and gas producers can submit non-binding nominations for all, one, or a combination of the commodities currently transported by Pembina. Its Peace, Northern, and Swan Hills pipeline systems transport high sulphur crude, sweet crude, condensate, propane plus and ethane plus.
Pipeline operators hold open seasons to ensure all interested parties are made aware of the proposed terms for a new pipeline project,and determine if there is sufficient customer interest to pursue it.
Pembina's president and COO Mick Dilger said: "Increased production from the Duvernay, Cretaceous, Montney, Deep Basin, and Swan Hills areas has resulted in significant demand for additional transportation services in Alberta. The additional pipeline capacity would allow industry to access the markets on a competitive and cost-effective basis."
Although the pipeline operator has expanded capacity at several of its facilities, as production continues to rise near its infrastructure, demand is expected to outpace these capacity increases, creating the need for additional transportation services.
In order to participate in the open season, parties must have executed and delivered a confidentiality agreement and non-binding nominations to Pembina by April 30.