Energy transporter and service provider,
Pembina Pipeline Corp.
) plans to invest $110 million on a shallow cut gas plant,
Musreau II, near its existing Musreau facility in central
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The company's plans include not only construction but also owning
and operating the 100 million cubic feet per day (Mmcf/d) gas
plant and associated natural gas liquids (NGL) and gas gathering
The facility, which is designed to extract propane plus (C3+), is
in sync with Pembina Pipeline's previously announced Conventional
Pipeline expansion. It is expected to add 4,200 barrels per day
of NGL for transportation through the company's Conventional
Musreau II is expected to be in service in the first quarter of
2015 subject to regulatory and environmental approvals. By the
end of 2015, Pembina's daily processing capacity is expected to
reach approximately 1.2 billion cubic feet (including
contributions from the Musreau II gas plant).
This $110 million facility is backed by long-term contracts with
area producers for 100% of the facility's capacity.
Calgary-based Pembina Pipeline Corporation operates in four
segments; the Conventional Pipelines segment that transports
crude oil, condensate, and natural gas liquids to the Alberta and
British Columbia areas, the Oil Sands & Heavy Oil segment
which transports synthetic crude oil produced from oil sands, the
Midstream & Marketing segment that provides storage and
terminal services, and the Gas Services which comprises of
natural gas gathering and processing facilities.
The 60-year old North American energy firm, Pembina Pipelines
currently holds a Zacks Rank #1 (Strong Buy), implying that it is
expected to outperform in the broader U.S. equity market over the
next one to three months.
Meanwhile one can also look at other stocks also that hold a
Zacks Rank #1(Strong Buy) such as
Magellan Midstream Partners LP
Cabot Oil & Gas Corp.
Range Resources Corp.
) as good investment opportunities