Encana and Pembina Pipeline have entered an agreement to expand the processing and liquids extraction capacity of the Resthaven natural gas processing plant in west-central Alberta, Canada, for C$230m ($227m).

The expansion will increase Resthaven facility’s extraction capability from 1,000 barrels per day to 8,000 barrels per day.

Pembina will construct a 44km, 6in-diameter natural gas liquids pipeline to transport the extracted liquids from the Resthaven facility to Pembina’s Peace Pipeline, which delivers production to Edmonton, Alberta.

On completion, Pembina will own about 65% of the Resthaven facility and 100% of the pipeline.

The expansion is the first of a two-phase expansion, which is scheduled to come onstream in late 2013.

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