Pembina Pipeline approves C$1.3B capital program for 2018
Pembina Pipeline has approved approximately C$400M of new capital projects, as well as a capital program of approximately $1.3B for 2018. Pembina has approved the development of the company's previously proposed liquefied petroleum gas export terminal, the Prince Rupert Terminal, to be located on Watson Island, British Columbia. The Prince Rupert Terminal is expected to have a permitted capacity of approximately 25,000 barrels per day of LPG and is expected to be in service mid-2020, subject to Pembina receiving necessary regulatory and environmental approvals. The expected capital cost has been adjusted to C$250-C$270M. LPG supply for the Prince Rupert Terminal will primarily be sourced from Pembina's Redwater fractionation complex. In addition to the Prince Rupert Terminal, the board have sanctioned the development of the North Central Liquids Hub within the world class Montney formation. The estimated capital cost for this project is C$320M and is expected to be placed into service in late 2018. The company expects to fund the approximately $1.3B 2018 capital program through internally generated cash flow and debt financing.