• 6 minutes Can the World Survive without Saudi Oil?
  • 10 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 15 minutes Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 4 mins U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 3 hours Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 10 hours Judge Approves SEC Settlement With Tesla, Musk
  • 3 hours WTI @ $75.75, headed for $64 - 67
  • 5 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 5 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 7 hours Iranian Sanctions - What Are The Facts?
  • 8 hours EU to Splash Billions on Battery Factories
  • 5 hours China Thirsty for Canadian Crude
  • 10 hours Gold price on a rise...
  • 10 hours Porsche Says That it ‘Enters the Electric Era With The New Taycan’
  • 11 hours Saudi Crown Prince to Trump: We've Replaced All Iran's Lost Oil
  • 6 hours Shell, partners approve huge $31 billion LNG Canada project. How long till Canadian Federal government Environmentalates it into the ground?
U.S. Shale’s Glory Days Are Numbered

U.S. Shale’s Glory Days Are Numbered

That decline rates in U.S.…

Why Is This Little-Known Element Up Over 300%

Why Is This Little-Known Element Up Over 300%

Element ‘’V’’, better known as…

Canada’s Prolific Montney Shale Drives Pipeline Expansion

Pipeline

With oil and gas output still on the upward swing in Canada’s most prolific shale play, despite depressed oil prices, one of the biggest benefactors is a Calgary-based pipeline company with enough demand to fund a 45,000-bpd expansion.

Pembina Pipeline Corp. announced today that it’s planning to boost capacity in response to an uptick in demand from customers in the Montney shale and Deep Basin oilfields, according to a company press release.

An additional 45,000 barrels per day of capacity will be tacked onto Pembina’s Phase V expansion project. The additional capacity will allow it to carry a total of 305,000 bpd of crude oil and condensate through its pipeline.

Storage tanks and a new pumping station will also be added into the extra capacity.

In total, the Pembina’s Phase V expansion project now carries a price tag of over US$310 million (C$385 million), with the approximately US$108 million in additions.  

The Montney is Canada’s prized shale region, and it has survived the oil price downturn—much more so than heavy Canadian oil sands, which have seen better days.

The Montney runs from British Columbia into Alberta, in western Canada, and the National Energy Board of Canada estimates gas in place from 80 to 700 trillion cubic feet, with prospective for oil.

The shale has a super liquids-rich window that some analysts believe will make it one of the top plays in Canada—or all of North America. 

Related: The Driving Forces Behind Today’s Oil Markets

Pembina’s pipeline expansion plans announced in April—and now further additions—speak volumes as to how the Montney is beating the oil market odds.

In total, Pembina says its customers have already committed to 30,000 bpd in additional capacity, the press release said.  

The pipeline runs between Lator and Fox Creek, in central Alberta, and Phase V expansion plans were given the green light for environmental and regulatory requirements in April. The Phase V expansion is expected to begin operating late next year. 

By Damir Kaletovic for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News