CALGARY, Sept. 16, 2013 /CNW/ - Pembina Pipeline Corporation ("Pembina"
or the "Company") (TSX: PPL; NYSE: PBA) announced today that it plans
to proceed with a $115 million expansion of its Peace Pipeline System between Simonette and Fox Creek, Alberta (the "Simonette Pipeline
Expansion"). In response to requests from area producers for firm
service, the Simonette Pipeline Expansion is expected to initially
deliver approximately 40,000 barrels per day of additional liquids to
Pembina's Fox Creek Terminal. At Fox Creek, this incremental production
will access Pembina's previously announced Phase I and II Peace
Pipeline mainline expansions from Fox Creek to the Edmonton area
markets. In addition, once the project is complete, Pembina expects to
have sufficient capacity and operational flexibility within the
Simonette to Fox Creek corridor to transport substantially all future
volumes nominated through the Open Season process (Phase III Peace
Pipeline mainline potential expansion plans) announced March 7, 2013.
The Simonette Pipeline Expansion will require the installation of
approximately 60 kilometres of 16-inch pipeline along Pembina's
existing right-of-way, and will provide service to producers developing
the regional Montney and Duvernay formation resource plays. Once
complete, Pembina will have three pipelines in the corridor capable of
segregating and shipping various grades of crude oil, condensate and
natural gas liquids. Subject to receiving required environmental and
regulatory approvals, Pembina expects to commence construction on the
pipeline project this winter, with an estimated in-service date in the
third quarter of 2014.
In conjunction with the Simonette Pipeline Expansion, Pembina is also
installing eight clean crude oil and condensate truck unloading risers
at the Fox Creek Terminal which it anticipates will be in service in
the fourth quarter of 2013. The addition of high capacity truck
unloading facilities will allow producers to access Edmonton area
markets through previously announced Phase I and II Peace Pipeline
mainline expansions.
"The additional capacity provided by these expansions will help ensure
our customers have timely access to markets as they continue to pursue
their drilling and production plans," said Mick Dilger, Pembina's
President and Chief Operating Officer. "The Simonette Pipeline
Expansion Project ties in directly with our Open Season process by
installing sufficient capacity for all anticipated future production
growth coming from that particular area. With our existing asset
footprint and rights-of-way, we are happy to have the flexibility to
phase-in solutions such as this to alleviate capacity constraints while
we solidify the remainder of our development plans. We expect to have
additional information to share with our shareholders, stakeholders and
customers regarding the Open Season in the coming weeks and months."
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
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 document 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",
"forecasts", "plans", "anticipates", "indicates", "potential", "will",
"estimate", "expand", "would", "possible" and similar expressions
suggesting future events or future performance.
In particular, this document contains forward-looking statements,
including certain financial outlook, pertaining to, without limitation,
the following: Pembina's business objectives; the planned capacity of
the Simonette Pipeline Expansion Project, Fox Creek Terminal truck
risers and the Open Season; the anticipated capital cost of the
Simonette Expansion; the expected in-service date of the Simonette
Pipeline Expansion and the Fox Creek Terminal truck risers; the ongoing
utilization and expansions of and additions to Pembina's business and
asset base, growth and growth potential; and expectations regarding
supply and demand factors and pricing for oil, natural gas liquids and
natural gas. 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; future demand for fractionation
and storage services; future levels of oil and natural gas development;
potential revenue and cash flow enhancement; and future cash flows.
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
