Pembina Pipeline Corp. has reached an agreement with Chevron Canada Ltd. to build natural gas pipelines and processing facilities for a potential production operation northwest of Edmonton. The Calgary-based pipeline company said its 20-year deal with Chevron involves the construction and operation of potential gas and liquids infrastructure in the Duvernay resource play near Fox Creek, Alberta.
Chevron has been conducting an appraisal of its Duvernay holdings in the Fox Creek area since the middle of 2014, using two drilling rigs to evaluate well production rates and reservoir performance. The company holds a 70 per cent interest in 330,000 acres in the Alberta shale gas play. The deal with Pembina requires the pipeline company to build and run gas gathering pipelines and processing facilities, liquids facilities and other infrastructure.