CALGARY, Sept. 3, 2013 /CNW/ - Pembina Pipeline Corporation ("Pembina"
or the "Company") (TSX: PPL; NYSE: PBA) announced today that it has
acquired a site in the Alberta Industrial Heartland for approximately
$20 million featuring a well-designed existing rail system and utility
infrastructure to support the future development of rail, terminalling
and storage facilities (the "Heartland Hub"). The Heartland Hub is a
further build-out of Pembina's larger Nexus terminal ("PNT"), servicing
crude oil and diluent customers for terminalling, storage and rail.
The Heartland Hub will be a receipt and delivery terminal designed to
capture opportunities to expand services for Pembina's customers. The
site is in close proximity to major oil sands pipeline rights-of-way,
existing crude oil and petrochemical infrastructure and Pembina's
Redwater site. It is expected to provide interconnectivity via pipeline
and rail to downstream refining markets and enable Pembina to offer
upstream and downstream customers access to merchant storage and other
complementary midstream services.
Key features of the acquisition include:
-
232 acres of well-developed industrial land;
-
in excess of 5,000 linear feet of rail track, currently serviced by CN
Rail;
-
160 acres of adjacent, existing Pembina lands, which can be developed
for future merchant storage and rail expansions;
-
1,280 acres of Pembina salt rights in close proximity to support future
cavern development; and
-
the ability to access over four million barrels per day of existing and
future oil sands and conventional crude oil supply through various
current and potential pipeline interconnection(s).
The Heartland Hub is an integral part of the broader PNT which
interconnects Pembina's terminalling infrastructure located in the
Edmonton, Redwater and Fort Saskatchewan areas. PNT provides
unparalleled access to the diverse crude oil grades produced in western
Canada. In addition, it is connected to condensate (diluent)
transported on third-party as well as Pembina pipeline systems,
including imported pipeline and rail supplies. The access and
connectivity of PNT provides the broadest array of crude oil and
diluent services available to Pembina's customer base.
At the same time, Pembina has entered into a multi-year agreement with a
major North American refiner for the provision of services to load
crude oil railcars within the existing infrastructure at PNT. This
service will commence immediately. The agreement provides up to 40,000
barrels per day of various crude grades, and capitalizes on the full
service offering of pipeline, storage and rail infrastructure at PNT.
"Pembina's purchase of this property in the Heartland area and our
agreement with a major North American refiner demonstrates the growing
demand for terminalling services and the business model being built-out
by Pembina's Midstream business. PNT's location and connections to
take-away pipeline infrastructure and its ability to offer enhanced
crude oil and diluent services allow us continue to provide customers
an attractive and expanding suite of services and midstream
capabilities" said Bob Jones, Pembina's Vice President, Midstream.
"We're also excited about the benefits to our other businesses: true to
our vertical integration strategy, we see synergies between the
midstream services which will be available at PNT and our Conventional
Pipelines, Gas Services, and Oil Sands & Heavy Oil businesses."
The acquisition of the Heartland Hub was funded by Pembina's existing
credit facilities.
To view a map of the Heartland Hub and surrounding area, including
Pembina's Redwater site, please visit the following link and select
Heartland Hub: http://www.pembina.com/pembina/webcms.nsf/AllDoc/CE0654AEEEF402A08725778800593A7D?OpenDocument
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,
condensate and natural gas liquids produced in western Canada; oil
sands and heavy oil and diluent 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 span across its operations. Pembina's integrated assets
and commercial operations enable it to offer services needed by the
energy sector along 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.
Forward-Looking Statements & Information
This news release contains certain forward-looking statements and
information (collectively, "forward-looking statements") within the
meaning of the "safe harbor" provisions of applicable securities
legislation that are based on Pembina's current expectations,
estimates, projections and assumptions in light of its experience and
its perception of historical trends. In some cases, forward-looking
statements can be identified by terminology such as "expects", "will",
"estimate", "expand", "would", "develop" and similar expressions
suggesting future events or future performance.
In particular, this news release contains forward-looking statements,
including certain financial outlook, pertaining to, without limitation,
the following: Pembina's business objectives; the ongoing utilization
and expansions of and additions to Pembina's business and asset base,
growth and growth potential; expectations regarding future demand for
midstream services; and expectations regarding supply and demand
factors and pricing for oil and natural gas and hydrocarbon services.
These forward-looking statements and information are being made by
Pembina based on certain assumptions that Pembina has made in respect
thereof as at the date of this document including those discussed
below.
With respect to forward-looking statements contained in this document,
Pembina has made assumptions regarding, among other things: ongoing
utilization and future expansion, development, growth and performance
of Pembina's business and asset base; that favourable growth parameters
continue to exist in respect of current and future growth projects; and
that Pembina's businesses will continue to achieve sustainable
financial results.
Although Pembina believes the expectations and material factors and
assumptions reflected in these forward-looking statements are
reasonable as of the date hereof, there can be no assurance that these
expectations, factors and assumptions will prove to be correct. Readers
are cautioned that events or circumstances could cause results to
differ materially from those predicted, forecasted or projected. By
their nature, forward-looking statements involve numerous assumptions,
known and unknown risks and uncertainties that contribute to the
possibility that the predictions, forecasts, projections and other
forward-looking statements will not occur, which may cause actual
performance and financial results in future periods to differ
materially from any projections of future performance or results
expressed or implied by such forward-looking statements and
information.
None of the forward-looking statements described above are guarantees of
future performance and are subject to a number of known and unknown
risks and uncertainties, including, but not limited to: 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; lower than
anticipated results of operations and accretion from Pembina's
business initiatives; reduced amounts of cash available for dividends
to shareholders; the ability of Pembina to raise sufficient capital (or
to raise capital on favourable terms) to complete future projects and
satisfy future commitments.
The forward-looking statements contained in this document speak only as
of the date of this document. 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.
The forward-looking statements contained in this document are expressly
qualified by this cautionary statement.
All financial figures are in Canadian dollars, unless otherwise noted.
Pembina Pipeline® is a registered trademark of Pembina Pipeline
Corporation.
SOURCE: Pembina Pipeline Corporation
