CALGARY, Jan. 31, 2019 /CNW/ - Pembina Pipeline Corporation
("Pembina" or the "Company") (TSX: PPL; NYSE: PBA) announced today that it has approved an additional expansion of its Peace
Pipeline system ("Phase VIII"), which will accommodate incremental customer demand in the Montney area by debottlenecking constraints, accessing downstream capacity, and further enhancing product
segregation on the system. Phase VIII has an estimated capital cost of approximately $500 million
and is supported by 10-year contracts with significant take-or-pay provisions. Phase VIII is anticipated to be placed into
service in stages starting in 2020 through the first half of 2022, subject to regulatory and environmental approvals.
"Our strategic footprint continues to provide opportunities to complete staged expansions, enabling us to deliver timely and
reliable transportation service solutions for our customers," stated Mick Dilger, Pembina's
President and Chief Executive Officer. "Our customers continue to recognize the favorable economics in the Deep Basin and
Montney areas and like us are pursuing development with a long-term outlook. Further, they
appreciate the new markets we are developing such as the Prince Rupert Export Terminal and the proposed PDH/PP facility," added
Mr. Dilger.
Phase VIII will include new 10 and 16-inch pipelines in the Gordondale to La Glace corridor
of Alberta, as well as six new pump stations or terminal upgrades located between Gordondale and
Fox Creek, Alberta. Phase VIII will enable segregated pipeline service for ethane-plus and
propane-plus NGL mix from the central Montney area at Gordondale, Alberta, into the Edmonton area for market delivery. It is expected
that the majority of the $500 million capital spending will occur in 2020 and 2021.
The Phase VIII expansion advances Pembina's ultimate vision of having segregated liquids transportation service for
ethane-plus, propane-plus, crude and condensate across at least four pipelines between Gordondale, Alberta and the Edmonton area; as well as achieving Pembina's fully
powered-up market delivery capacity of 1.3 million barrels per day across the Peace and Northern Pipelines, which could be fully
realized with a Phase IX expansion, currently being engineered.
"The Phase VIII expansion is an exciting development as we are nearing our ultimate goal of achieving full product segregation
along the entire Peace Pipeline system," said Jason Wiun, Pembina's Senior Vice President and
Chief Operating Officer, Pipelines. "When combined with the Phase VII expansion, we have signed approximately 160,000 barrels per
day of incremental firm contracts. Through our various staged expansions, Pembina continues to respond to new service requests
from producers in a reliable, timely and cost-effective manner," concluded Mr. Wiun.
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
an integrated system of pipelines that transport various hydrocarbon liquids and natural gas products produced primarily in
western Canada. The Company also owns 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 identifying additional opportunities to connect hydrocarbon production to new demand locations
through the development of infrastructure that would extend Pembina's service offering even further along the hydrocarbon value
chain. These new developments will contribute to ensuring that hydrocarbons produced in the Western Canada Sedimentary Basin and
the other basins where Pembina operates can reach the highest value markets throughout the world.
Pembina strives to provide sustainable, industry-leading total returns for our investors; reliable and value-added services
for our customers; a net positive impact to communities; and a safe, respectful, collaborative and fair work culture for our
employees.
Pembina's strategy is to:
- Preserve value by providing safe, environmentally conscious, cost-effective and reliable services;
- Diversify by providing integrated solutions which enhance profitability and customer service;
- Implement Growth by pursuing projects or assets that are expected to generate cash flow per share accretion and
capture long-life, economic hydrocarbon reserves; and
- Secure Global Markets by understanding what the world needs, where they need it, and delivering it.
Pembina is structured into three Divisions: Pipelines Division, Facilities Division and Marketing & New Ventures
Division.
Pembina's common shares trade on the Toronto and New York
stock exchanges under PPL and PBA, respectively. For more information, visit www.pembina.com.
Forward-Looking Information and Statements
This news release contains certain forward-looking information and statements (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 this news release, such forward-looking information and statements can be identified by
terminology such as "plans", "will", "would", "could", "expects", "continue", "anticipate", "potential", "may", and similar
expressions.
In particular, this news release contains forward-looking statements, pertaining to, without limitation, the
following: planning, construction, capital expenditure estimates, schedules, regulatory and environmental applications and
approvals, incremental volumes, in-service dates, contractual and fee arrangements, rights, activities and operations with
respect to planned new construction of, or expansions in relation to Pembina's and its affiliates' pipeline and infrastructure
expansions; expectations around continuing producer activity and development and growth of product supply; the ongoing
utilization and expansions of and additions to Pembina's business and asset base, growth and growth potential; expectations
regarding future demand for transportation and processing services; Pembina's and its affiliates' corporate strategy; and ongoing
negotiations and discussions with customers for additional services.
These forward-looking statements are being made by Pembina based on certain assumptions that Pembina has made in respect
thereof as at the date of this news release, regarding, among other things: that counterparties to material agreements will
continue to perform in a timely manner; that Pembina's joint venture partners will continue to provide support joint venture
projects; the ability of Pembina and any required third parties to effectively engage with stakeholders; oil and gas
industry exploration and development activity levels; the success of Pembina's operations and growth projects; prevailing
commodity prices, margins, volumes and exchange rates; that Pembina's future results of operations will be consistent with past
performance and management expectations in relation thereto; the continued availability of capital at attractive prices to fund
future capital requirements relating to existing assets and projects, including but not limited to future capital expenditures
relating to expansion, upgrades and maintenance shutdowns; that any third party projects relating to Pembina's growth projects
will be sanctioned and completed as expected; that any required commercial agreements can be reached; that all required
regulatory and environmental approvals can be obtained on the necessary terms in a timely manner; that there are no unforeseen
events preventing the performance of contracts; that there are no unforeseen material construction, integrity or other costs
related to current growth projects or current operations; and prevailing interest and tax rates.
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. These
known and unknown risks and uncertainties, include, but are not limited to: the regulatory environment and
decisions; the ability of Pembina or its joint venture partners or customers to raise sufficient capital (or to raise
sufficient capital on favourable terms) to fund future expansions and growth projects and satisfy future commitments; failure to
negotiate and conclude any required commercial agreements or failure to obtain project sanctioning; increased construction costs,
or construction delays, on Pembina's expansion and growth projects; labour and material shortages; non-performance of
agreements in accordance with their terms; 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; actions by governmental or regulatory authorities including
changes in tax laws and treatment, changes in royalty rates or increased environmental regulation; adverse general economic and
market conditions in Canada, North
America and elsewhere; construction delays; labour and material shortages; and certain other risks detailed
from time to time in Pembina's public disclosure documents including, among other things, those detailed under the heading "Risk
Factors" in Pembina's management's discussion and analysis and annual information form for the year
ended December 31, 2017, which can be found at www.sedar.com.
The forward-looking statements are expressly qualified by the above statements and 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.
View original content:http://www.prnewswire.com/news-releases/pembina-pipeline-corporation-approves-phase-viii-peace-pipeline-expansion-300787939.html
SOURCE Pembina Pipeline Corporation
View original content: http://www.newswire.ca/en/releases/archive/January2019/31/c8195.html