Regulatory application marks project milestone
CALGARY, Sept. 4, 2014 /CNW/ - Pembina Pipeline Corporation ("Pembina"
or "the Company") (TSX: PPL; NYSE: PBA) announced that it has filed the
necessary regulatory applications to the Alberta Energy Regulator
("AER") for its Fox Creek, Alberta to Namao Junction, Alberta segment
of its previously announced $2 billion Phase III pipeline expansion
(the "Phase III Expansion").
The Fox Creek to Namao Junction project (the "Project") consists of a
new, 24" diameter pipeline that will span approximately 270 kilometres
in length. The pipeline will originate from a tie-in point located at
Pembina's existing pump station at Fox Creek and terminate at a tie-in
point located at Pembina's existing facility at Namao Junction. Pembina
expects this segment to have an initial capacity of 320,000 barrels per
day ("bpd") and an ultimate capacity of over 500,000 bpd with the
addition of midpoint pump stations. As part of the Project, Pembina has
also completed consultation related to, and applied to the AER for, an
additional 16" diameter pipeline from Fox Creek to Namao (this filing
was submitted at the same time as the 24" pipeline). The Company's
decision to construct this second 16" pipeline is pending commercial
support as of the date of this release. Pembina expects to make a
decision on the second pipeline later this year.
"We are very excited to reach this milestone for the core component of
our Phase III Expansion," said Jason Wiun, Pembina's Vice President,
Conventional Pipelines. "The proposed pipeline from Fox Creek into
Namao will be constructed using existing rights-of-way where possible
to minimize impact on the land and environment. At the outset of the
Project, we committed to filing our regulatory applications at the
beginning of September, and we've delivered on that promise. We look
forward to continuing to work with the AER, local communities,
stakeholders and Aboriginal communities as we advance this Project."
Subject to regulatory approval, Pembina expects the Project to be
in-service between late-2016 and mid-2017.
Pembina will provide information updates during the development of the
Project and, if approved, during implementation so that stakeholders,
communities, First Nations and other groups or individuals with
interests in the area are informed of the Company's activities. Pembina
has a strong reputation for constructing and operating facilities which
meet or exceed AER safety and environmental protection regulations and
guidelines, and the Company is committed to responsible development
throughout the life of this and all its projects.
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 pipelines that
transport various hydrocarbon liquids including conventional and
synthetic crude oil, heavy oil and oil sands products, condensate
(diluent) and natural gas 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 "expects", "will",
"expand", "would", "plans" and similar expressions suggesting future
events or future performance.
In particular, this document contains forward-looking statements,
pertaining to, without limitation, the following: Pembina's corporate
strategy; planning, construction, capital expenditure estimates,
schedules, expected capacity, incremental volumes, in-service dates,
and operations with respect to the Phase III Expansion; expectations
regarding future demand for transportation services; and expectations
regarding supply and demand factors. 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: that
counterparties will comply with contracts in a timely manner; that
there are no unforeseen events preventing the performance of contracts
or the completion of the Phase III Expansion; that Pembina will obtain
required regulatory approvals on a timely basis; maintenance of
operating margins; ongoing utilization and future expansion,
development, growth and performance of Pembina's business and asset
base; future demand for transportation services; future levels of oil
and natural gas development in proximity to Pembina's pipelines and
other assets (which could be affected by, among other things, possible
changes to applicable royalty and tax regimes); future acquisitions,
growth and growth potential in Pembina's operations; additional
throughput potential on additional connections and other initiatives on
the Conventional Pipelines systems; expected Phase III Expansion
start-up and construction dates; and future financing capability and
sources.
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.
The actual results of Pembina could differ materially from those
anticipated in these forward-looking statements as a result of material
risk factors including, but not limited to: the regulatory environment
and decisions, and the inability to obtain required regulatory
approvals; the impact of competitive entities and pricing; reliance on
key relationships 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;
non-performance or default by counterparties to agreements which
Pembina or one or more of its affiliates has entered into in respect of
its business; actions by governmental or regulatory authorities
including increased environmental regulation; unexpected increases in
capital costs for the Phase III expansion; adverse general economic and
market conditions in Canada, North America and elsewhere; lower than
anticipated results of operations and accretion from Pembina's business
initiatives; and the ability of Pembina to raise sufficient capital (or
to raise capital on favourable terms) to complete future projects and
satisfy future commitments.
These factors should not be construed as exhaustive. Unless required by
law, Pembina does not undertake any obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise. Any forward-looking statements
contained herein are expressly qualified by this cautionary statement.
Pembina Pipeline® is a registered trademark of Pembina Pipeline
Corporation.
SOURCE Pembina Pipeline Corporation
