Pembina enters into agreement with the Port of Portland, Oregon to
enable the development of Pembina's planned West Coast propane export
terminal project
CALGARY, Sept. 2, 2014 /CNW/ - Pembina Pipeline Corporation ("Pembina"
or "the Company") (TSX: PPL; NYSE: PBA) is pleased to announce that it
has selected the site for the Company's planned West Coast propane
export terminal project (the "West Coast Terminal" or the "Project").
On August 28, 2014, Pembina entered into an agreement (the "Terminal
Agreement") with the Port of Portland, Oregon (the "Port") that sets
forth the terminal site, which includes an existing marine berth,
located within the city of Portland for the development of the Project.
The Terminal Agreement also outlines the material commercial lease
terms for the West Coast Terminal.
Most importantly, the Terminal Agreement now enables Pembina to begin
the process of engaging and consulting with the neighbours of the
Project and other stakeholders within the city of Portland, municipal,
state and federal governments, and all applicable environmental and
regulatory authorities.
Under the Terminal Agreement, Pembina will continue to progress detailed
engineering work, undertake extensive environmental and regulatory
reviews and assessments and, together with the Port, begin the process
to obtain all the required permits and approvals for the development of
the West Coast Terminal.
"Signing the Terminal Agreement is a tremendous milestone for the
Project," said Mick Dilger, Pembina's President and Chief Executive
Officer. "It marks the beginning of consulting and engaging with
stakeholders, governments and the environmental and regulatory
authorities. Building trust with the communities where we operate is a
top priority for Pembina and over the last 60 years, we have developed
a reputation for honesty, transparency and treating our stakeholders
with respect. Ongoing dialogue with our stakeholders is an integral
part of what we do and is the most important step in any development
process. We are looking forward to our conversations with the
neighbours of the Project."
Pembina intends to initially develop a 37,000 barrel per day propane
export facility for an expected capital investment of approximately
US$500 million and with an anticipated in-service date of early-2018.
The Company expects that the West Coast Terminal will provide growing
Canadian propane supply (that is derived from natural gas produced in
Western Canada) with access to large, international markets while
complementing Pembina's expanding integrated service offering for
products that are derived from natural gas.
"Working with the Port toward development of Pembina's West Coast
Terminal has been very positive," said Andrew Gruszecki, Pembina's Vice
President of Business Development. "We are pleased by the Port's
sophistication, work ethic and excellent facilities and operations.
Pembina is eager to progress the Project under the terms of the
Terminal Agreement to bring our plans for a significant investment in
the Portland area to fruition, allowing us to provide an exciting
opportunity for our shareholders and a market solution for our
customers. We are excited to work with the people of Portland on
investment and employment opportunities for the near and long-term."
The Port is located in the city of Portland along the Columbia and
Willamette rivers. The Columbia River provides deep water access to the
Pacific Ocean, which is approximately 180 kilometers downstream. The
Port has lands available for the installation of storage, piping and
rail facilities and marine infrastructure associated with Pembina's
Project.
"Our Port is already a proven gateway for Canadian exports and imports,
and I am impressed by the level of experience, expertise and commitment
to safety that Pembina brings to the table," says Bill Wyatt, Executive
Director of the Port of Portland. "This will be an excellent fit, and
we are fully committed to make the Project a reality in Portland."
Pembina believes being a responsible operator means being committed to
protecting the health and safety of people and the environment. The
Company's Safety, Environment and Security ("SES") management system is
a cornerstone of Pembina's success and is deeply embedded in its
corporate culture. Pembina reinforces its dedication to excellence in
SES in its daily operations through regular safety meetings, extensive
contractor screening, rigorous project inspection, review of potential
hazards, and ensuring the Company's assets and practices meet or exceed
industry best practices. Pembina will work with the Port of Portland
and all other stakeholders to ensure the Project is constructed and
operated safely and in accordance with all municipal, state and federal
regulations.
Under the terms of the Terminal Agreement, the Project is subject to
Pembina and the Port entering into definitive agreements, and the
receipt of all environmental and regulatory permits and approvals
necessary for the development of the Project.
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 60 years. Pembina owns and operates infrastructure
that transport various products derived from natural gas and
hydrocarbon liquids produced in western Canada. The Company also owns
and operates 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 the
hydrocarbon value chain.
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 "enables", "begin",
"will", "intends", "anticipates", progress" and similar expressions
suggesting future events or future performance.
In particular, this document contains forward-looking statements,
pertaining to, without limitation, the following: the Project; the
expected commencement and timing of stakeholder engagement; Pembina's
intentions to continue to progress detailed engineering work, undertake
regulatory and environmental reviews and assessments, proceed with
permitting and seek approvals for the Project; the planned capacity of
the proposed West Coast Terminal; the anticipated capital expenditures
related to the Project; the expected in-service date of the West Coast
Terminal; Pembina's expectations around access to international markets
and supply sources; expected integration of the Project with Pembina's
existing and future infrastructure and Company strategy; the
anticipated conclusion of commercial agreements; the ongoing
utilization and expansions of and additions to Pembina's business and
asset base, growth and growth potential. 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: the ability
of the parties to effectively engage with stakeholders; that the
Project will continue to be economically and strategically beneficial
to the Company; that Pembina's due diligence will not reveal anything
that renders the Project not feasible; that the Port will obtain all
required third-party approvals and agreements for the Project; that
Pembina will obtain all required regulatory, environmental,
governmental and other third-party approvals; that third-parties will
provide any required support; that counterparties will comply with
contracts in a timely manner; the ability of the parties to satisfy the
conditions of the Terminal Agreement and conclude definitive agreements
within the time required under the Terminal Agreement; cost of
engineering, environmental, regulatory, construction and other
Project-related expenses; that there are no unforeseen events
preventing the completion of the Project or the performance of
obligations under the Terminal Agreement or commercial agreements; that
Pembina and the Port will obtain Project sanctioning on a timely basis;
the competitive landscape and timing of potential similar projects;
ongoing utilization and future expansion, development, growth and
performance of Pembina's business and asset base; future demand for
fractionation and transportation services; future international supply
of and demand for propane; future levels of oil and natural gas
development; and potential revenue and cash flow enhancement; 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. Risks and uncertainties inherent in the nature of the
Project include the failure of the parties to satisfy the conditions to
the Terminal Agreement, the failure of the parties to negotiate and
conclude definitive agreements, the inability of Pembina or the Port to
obtain Project sanctioning, Pembina's due diligence revealing the
Project to be not economically or commercially feasible, the inability
to secure third-party, regulatory, environmental or governmental
approvals in a timely manner, or at all, changes to the market for
propane or supply sources. Failure to so obtain such approvals, or the
failure to otherwise satisfy the conditions to the Project, may result
in the Project not being completed on the proposed terms, or at all.
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 failure to
realize the anticipated benefits of the Project following completion
due to integration issues or otherwise; 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.
Pembina Pipeline® is a registered trademark of Pembina Pipeline
Corporation.
SOURCE Pembina Pipeline Corporation
