CALGARY, Sept. 25, 2014 /CNW/ - Pembina Pipeline Corporation ("Pembina" or "the Company") (TSX: PPL;
NYSE: PBA) provided an update on projects in several of the Company's
business units.
Gas Services
Pembina is pleased to announce that it has commenced commissioning and
extracted its first natural gas liquids ("NGL") barrels through its
recently constructed 200 million cubic feet per day ("mmcf/d") (134
mmcf/d net) Resthaven gas processing facility ("Resthaven").
Commissioning will continue over the next two to three weeks at which
point Resthaven will deliver NGLs into Pembina's Peace Pipeline.
Pembina continues to make excellent progress on the construction of
Musreau II, a 100 mmcf/d shallow cut gas plant and now expects Musreau
II to be in service in December 2014, ahead of its previously
anticipated in service date of first quarter 2015.
"We are excited with the progress we have made on these two projects and
believe they demonstrate Pembina's ability to execute on its capital
program," said Stu Taylor, Senior Vice President NGL & Natural Gas
Facilities. "When Musreau II comes onstream Pembina will reach an
important milestone of having 1.0 bcf/d of field gas processing, making
Pembina one of the largest gas processing companies in the Western
Canadian Sedimentary Basin."
Conventional Pipeline
In connection with the Company's Phase III pipeline expansion, Pembina
was also successful in its recontracting efforts to secure the majority
of existing crude and condensate volumes under long-term, firm service
contracts. Since our last press release dated September 10, 2014
Pembina has contracted an additional 18,000 bpd as part of its Phase
III pipeline expansion and now has 307,000 bpd under contract. In
aggregate Pembina has now contracted approximately 650,000 bpd of crude
oil, condensate and NGLs through its recontracting efforts, and its Phase I, II and III
conventional pipeline expansions.
Oil Sands and Heavy Oil
Pembina was informed by Statoil that Statoil's Cornerstone oil sands
project has been deferred. The engineering support agreement between
Pembina and Statoil for the related Cornerstone oil sands pipeline
expires at the end of September and no additional capital will be spent
on the pipeline project. Pembina will retain the right to use the
engineering for other commercial discussions.
"While we are disappointed about the Cornerstone pipeline not proceeding
at this time we have approximately $6.0 billion of committed projects
underway and another $1.7 billion of projects we are looking to
commercially secure," said Mick Dilger, President and Chief Executive
Officer. "We believe this suite of projects will continue to drive
shareholder value in the years to come."
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 "continues",
"expects", "will", "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, schedules, expected capacity,
incremental volumes, in-service dates, and operations with respect to
Company projects. 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 Company projects; that Pembina will obtain
required regulatory approvals on a timely basis; 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);
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; 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
