Pembina has secured required contracts to underpin 55,000 barrel per day
capacity expansion to its Peace Pipeline
CALGARY, Feb. 13, 2013 /CNW/ - Pembina Pipeline Corporation ("Pembina"
or the "Company") (TSX: PPL; NYSE: PBA) announced that it has reached
its contractual threshold to proceed with its previously announced
plans to significantly expand its crude oil and condensate throughput
capacity on its Peace Pipeline by 55,000 barrels per day ("bpd") (the
"Phase 2 LVP Expansion").
The crude oil and condensate (low vapor pressure, or "LVP") portion of
the Peace Pipeline is currently operating at capacity. Pembina is
working to complete its previously announced Phase 1 LVP Expansion,
which will expand crude oil and condensate capacity on this system by
an additional 40,000 bpd to reach 195,000 bpd by October of 2013.
The Phase 2 LVP Expansion is expected to accommodate increased producer
crude oil and condensate volumes arising from strong drilling results
in the Dawson Creek, Grande Prairie and Kaybob/Fox Creek areas of
Alberta. Pembina expects the total cost of Phase 2 LVP Expansion to be
approximately $250 million (including the mainline expansion and
tie-ins). Subject to obtaining regulatory and environmental approvals,
Pembina anticipates being able to bring the expansion into service by
late-2014. Once complete, this expansion will increase capacity on the
Peace Pipeline to 250,000 bpd. The Phase 2 LVP Expansion is underpinned
by long-term fee-for-service agreements with area producers. The
combination of Phase 1 and Phase 2 LVP Expansions will increase
capacity by 61 percent from current levels.
"This next phase of our growth strategy evidences the strength of our
existing asset base and integrated service offering" said Mick Dilger,
Pembina's President and Chief Operating Officer. "The Phase 2 LVP
Expansion will allow us to enhance the services we provide customers by
easing potential capacity constraints in the near future. Further, this
project will increase our fee-for-service, secured cash flow stream,
thereby adding value to our shareholders."
The Phase 2 LVP Expansion will require Pembina to install five new pump
stations, upgrade six existing pump stations, and add additional
operational storage. As well, Pembina will reconfigure existing
pipelines and build a total of 10 km of new pipeline from Gordondale to
Spirit River.
The Company's crude oil, condensate and natural gas liquids ("NGL")
expansions are being undertaken to help provide adequate transportation
capacity to support western Canada's growing energy industry. Pembina
is committed to providing all customers with safe, reliable and
efficient transportation and related energy services. With customer
support having been obtained for the expansions discussed herein,
Pembina is progressing front end engineering on a Phase 3 crude oil,
condensate and NGL pipeline expansion from Taylor, British Columbia to
the Edmonton/Fort Saskatchewan areas of Alberta.
About Pembina
Calgary-based Pembina Pipeline Corporation is a leading transportation
and midstream service provider that has been serving North America's
energy industry for nearly 60 years. Pembina owns and operates:
pipelines that transport conventional and synthetic crude oil and
natural gas liquids produced in western Canada; oil sands and heavy oil
pipelines; gas gathering and processing facilities; and, an oil and
natural gas liquids infrastructure and logistics business. With
facilities strategically located in western Canada and in natural gas
liquids markets in eastern Canada and the U.S., Pembina also offers a
full spectrum of midstream and marketing services that spans across its
operations. Pembina's integrated assets and commercial operations
enable it to offer services needed by the energy sector along multiple
steps of the hydrocarbon value chain.
Pembina is a trusted member of the communities in which it operates and
is committed to generating value for its investors by running its
businesses in a safe, environmentally responsible manner that is
respectful of community stakeholders.
Pembina provides monthly cash dividends to its shareholders. Pembina's
common shares and convertible debentures are traded on the Toronto
Stock Exchange under the symbols PPL, PPL.DB.C, PPL.DB.E and PPL.DB.F
respectively. Pembina's common shares are traded on the New York Stock
Exchange under the symbol PBA.
Forward-Looking Information and Statements
This news release contains certain forward-looking information and
statements that are based on Pembina's current expectations, estimates,
projections and assumptions in light of its experience and its
perception of historical trends. In this news release, such
forward-looking information and statements can be identified by
terminology such as "expects", "will", "plans", "anticipates" and
similar expressions.
In particular, this news release contains forward-looking information
and statements relating to: (i) the expected in-service dates of the
Phase 1 and 2 LVP Expansions (collectively, the "Expansions"); (ii) the
designed capacity of the Expansions; (iii) the estimated cost to
construct the Expansions; and (iv) industry exploration and development
activity levels. These forward-looking statements are based on certain
assumptions including: that the in-service date of the Phase 1 LVP
Expansion will be October 2013 and the Phase 2 LVP Expansion will be
late 2014; that the designed capacity of the Phase 1 LVP Expansion will
be 195,000 bpd and the Phase 2 LVP Expansion will be 250,000 bpd; that
favourable growth parameters continue to exist in respect of current
and future growth projects (including the ability to finance such
projects on favourable terms); that Pembina is able to reach commercial
arrangements with its customers at a satisfying level; and that
Pembina's businesses will continue to achieve sustainable financial
results.
These forward-looking statements are not guarantees of future
performance and are subject to a number of known and unknown risks and
uncertainties, including, but not limited to: non-performance of
agreements in accordance with their terms; the impact of competitive
entities and pricing; reliance on key industry partners, alliances and
agreements; the strength and operations of the oil and natural gas
production industry and related commodity prices; the continuation or
completion of third-party projects; regulatory environment and
inability to obtain required regulatory approvals; tax laws and
treatment; fluctuations in operating results; the ability of Pembina to
raise sufficient capital to complete future projects and satisfy future
commitments; construction delays; labour and material shortages; and
certain other risks detailed from time to time in Pembina's public
disclosure documents including, among other things, those detailed
under the heading "Risk Factors" in Pembina's management's discussion
and analysis for the year ended December 31, 2011 and its Annual
Information Form for the year ended December 31, 2011, which can be
found at www.sedar.com.
Accordingly, readers are cautioned that events or circumstances could
cause results to differ materially from those predicted, forecasted or
projected. Such forward-looking statements are expressly qualified by
the above statements. Pembina does not undertake any obligation to
publicly update or revise any forward-looking statements or information
contained herein, except as required by applicable laws.
All dollar values are in Canadian dollars unless otherwise stated.
SOURCE: Pembina Pipeline Corporation
