Pembina Pipeline Corp. will provide terminaling services for the North West Redwater partnership for North West’s Sturgeon refinery, Pembina said May 21.

Pembina will provide the terminaling under a 30-year fixed return agreement and a 10-year NGL mix purchase and sale agreement related to the third fractionator it's constructing at its Redwater site.

"Pembina is very excited to be involved in this world class-project," said Mick Dilger, president and CEO. "The Sturgeon Refinery will be the first refinery to be built in Canada in 30 years and will add significant value to Alberta's bitumen resources in a responsible and sustainable manner."

The terminaling facilities’ construction will cost about CA$180 million, Pembina said. These include truck and rail loading, storage and handling and processing equipment for North West’s products.

The facilities are scheduled to be in service in mid-2017, pending regulatory and environmental approvals.

Previously, North West had entered into agreements with Provident Energy Ltd., which Pembina acquired on April 2, 2012. Since that time, Sturgeon’s development has progressed with changes, the company said.

Pembina noted that the CA$180 million construction cost is part of its suite of projects totaling CA$5.9 billion.

Pembina also said that it entered into agreements to construct a new pipeline lateral in the Karr area of Alberta to support Montney production.

The Karr Lateral will flow from legal land description 01-28-65-03 west of the 6th meridian to Pembina's terminal in northwest Alberta’s Lator area. Several companies are developing significant Montney acreage here, the company added.

The project is expected to cost CA$55 million. Karr will handle about 30,000 barrels per day. It is underpinned by long-term fee-for-service agreements that include take-or-pay commitments from several Pembina customers.

A portion of the volume under contract on the lateral will bolster Pembina's committed volumes. The lateral is scheduled to be in service in early 2016 pending regulatory and environmental approvals.

Jason Wiun, vice president of conventional pipelines, said the Karr Lateral will allow Montney operators to access Pembina’s Phase III pipeline expansion.

Pembina Pipeline Corp. is based in Calgary, Alberta.