CALGARY, Nov. 6, 2017 /PRNewswire/ - Pembina Pipeline
Corporation ("Pembina" or "the Company") (TSX: PPL; NYSE: PBA) announced that it has executed further agreements ("Service
Agreements") whereby the Company will construct and operate the first tranche of infrastructure development under its previously
announced 20-year infrastructure development and service agreement (the "Agreement") with Chevron Canada Limited ("Chevron"). The
Agreement includes over 230,000 acres of land dedication by Chevron in the liquids-rich Kaybob region of the Duvernay.
Under the Service Agreements, Pembina has been requested to develop and construct:
- raw product separation and water removal infrastructure;
- a condensate stabilization facility with approximately 30,000 barrels per day ("bpd") of raw inlet condensate handling
capacity;
- a 100 million cubic feet per day gas processing facility with approximately 5,000 bpd of propane-plus liquids capacity
("Duvernay II" a replica of Pembina's Duvernay I facility); and
- a 10-inch condensate pipeline lateral that will connect to the Company's Peace Pipeline system.
Duvernay II and the related infrastructure will be located at the Company's existing Duvernay
complex. Pembina expects the total capital cost to be approximately $290 million with an
anticipated in service date of mid to late 2019, subject to regulatory and environmental approvals. As per the terms of the
Service Agreements, the facilities will have a 20-year contractual life and would be back-stopped by a combination of
fee-for-service and fixed-return arrangements. Additionally, the Service Agreements include natural gas liquids ("NGL") and
condensate transportation on Pembina's Peace Pipeline system and NGL fractionation at the Company's Redwater Fractionation
complex.
"We are excited to further support the growth of the world-class Duvernay resource play and
begin building out our first tranche of infrastructure requested under the previously announced Agreement with Chevron," said
Jaret Sprott, Pembina's Vice President, Gas Services. "Pembina will leverage its template designs
in order to safely and cost-effectively construct the facilities for our partner. We look forward to continuing to develop future
Duvernay infrastructure needs over the long-term."
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 over 60 years.
Pembina owns and operates an integrated system of pipelines that transport natural gas and various products derived from natural
gas and hydrocarbon liquids produced primarily 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.
Pembina's integrated assets and commercial operations along the majority of the hydrocarbon value chain allow it to offer a full
spectrum of midstream and marketing services to the energy sector. Pembina is committed to working with its community and
aboriginal neighbours, while providing value for investors in a safe, environmentally responsible manner. This balanced approach
to operating ensures the trust Pembina builds among all of its stakeholders is sustainable over the long term. Pembina's common
shares trade on the Toronto and New York stock exchanges under
PPL and PBA, respectively. Pembina's preferred shares also trade on the Toronto stock exchange.
For more information, visit www.pembina.com.
Forward-Looking Statements & Information
This document contains certain forward-looking statements and information (collectively, "forward-looking
statements") 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", "would", "anticipates", and similar expressions suggesting future events or future performance.
In particular, this document contains forward-looking statements, pertaining to, without limitation, the following:
planning, capital expenditure estimates, expected capacity, in service dates, contracted terms, growth opportunities and benefits
from the Agreement.
The forward-looking statements are based on certain assumptions that Pembina has made in respect thereof as at the date of
this news release regarding, among other things, that favourable growth parameters continue to exist in respect of current and
future growth projects, oil and gas industry exploration and development activity levels and the geographic region of such
activity; ongoing utilization and future expansion, development, growth and performance of Pembina's business and asset base;
future demand for processing, fractionation and pipeline transportation services and new opportunities; prevailing commodity
prices and exchange rates and the ability of Pembina to maintain current credit ratings; the ability of Pembina to obtain
financing on favourable terms or at all; future operating costs; geotechnical and integrity costs; that any required commercial
agreements can be reached; that all required corporate, regulatory and environmental approvals can be obtained on the necessary
terms in a timely manner; that counterparties will comply with contracts in a timely manner; that there are no unforeseen
material costs relating to the facilities which are not recoverable from customers; interest and tax rates; prevailing
regulatory, tax and environmental laws and regulations; maintenance of operating margins; the amount of future liabilities
relating to environmental incidents; and the availability of coverage under Pembina's insurance policies (including in respect of
Pembina's business interruption insurance policy).
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. These forward-looking statements are not guarantees of future performance and are subject to a number of
known and unknown risks and uncertainties including, but not limited to: the regulatory environment and the ability to obtain
required regulatory, corporate, environmental approvals; the impact of competitive entities and pricing; labour and material
shortages; strength and operations of the oil and natural gas production industry and related commodity prices; 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 changes in tax laws and treatment, changes in royalty rates
or increased environmental regulation; fluctuations in operating results; adverse general economic and market conditions in
Canada, North America and elsewhere, including changes in
interest rates, foreign currency exchange rates and commodity prices; and certain other risks detailed from time to time in
Pembina's public disclosure documents available at www.sedar.com. This list of
risk factors should not be construed as exhaustive.
Readers are cautioned that events or circumstances could cause results to differ materially from those predicted,
forecasted or projected. 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 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