Pembina Pipeline has announced it will provide terminalling services for the planned Sturgeon Refinery in Alberta, Canada.
The refinery will be the first to be built in Canada in 30 years and the terminalling services provided by Pembina Pipeline for the North West Redwater Partnership will be under a 30-year fixed return agreement and a 10-year natural gas liquids mix purchase and sale agreement related to the third fractionator Pembina is constructing at its Redwater site.
Mick Dilger, Pembina’s president and CEO says: ‘The Sturgeon Refinery will add significant value to Alberta’s bitumen resources in a responsible and sustainable manner.’
The facilities, which require a capital investment of $180 million (€160 million), will include truck and rail loading facilities, storage, as well as handling and processing equipment for a variety of products delivered from the northwest. It is expected to be in service by mid-2017.
Robert Lock, Pembina’s vice president adds: ‘We are developing the facilities associated with the terminalling services at our existing Redwater site, once again demonstrating the value we are able to provide customers by leveraging our integrated suite of assets.
‘Further, the long-term, contracted nature of the terminalling services to be provided by Pembina in support of the refinery will be beneficial to our shareholders as they will add to our growing fee-for-service-based, low-risk cash flow stream.’
In addition, Pembina has also announced it has agreed to build a new pipeline lateral in the Karr area of Alberta to service growing production from the Montney resource play.