Pembina has secured required
contracts to underpin 55,000 barrel per day capacity expansion to
its Peace Pipeline
CALGARY, Feb. 13, 2013 /PRNewswire/ - Pembina Pipeline
Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA)
announced that it has reached its contractual threshold to proceed
with its previously announced plans to significantly expand its
crude oil and condensate throughput capacity on its Peace Pipeline
by 55,000 barrels per day ("bpd") (the "Phase 2 LVP
Expansion").
The crude oil and condensate (low vapor pressure, or "LVP")
portion of the Peace Pipeline is currently operating at capacity.
Pembina is working to complete its
previously announced Phase 1 LVP Expansion, which will expand crude
oil and condensate capacity on this system by an additional 40,000
bpd to reach 195,000 bpd by October of 2013.
The Phase 2 LVP Expansion is expected to accommodate increased
producer crude oil and condensate volumes arising from strong
drilling results in the Dawson
Creek, Grande Prairie and
Kaybob/Fox Creek areas of
Alberta. Pembina expects the total cost of Phase 2 LVP
Expansion to be approximately $250
million (including the mainline expansion and tie-ins).
Subject to obtaining regulatory and environmental approvals,
Pembina anticipates being able to
bring the expansion into service by late-2014. Once complete, this
expansion will increase capacity on the Peace Pipeline to 250,000
bpd. The Phase 2 LVP Expansion is underpinned by long-term
fee-for-service agreements with area producers. The combination of
Phase 1 and Phase 2 LVP Expansions will increase capacity by 61
percent from current levels.
"This next phase of our growth strategy evidences the strength
of our existing asset base and integrated service offering" said
Mick Dilger, Pembina's President and Chief Operating
Officer. "The Phase 2 LVP Expansion will allow us to enhance the
services we provide customers by easing potential capacity
constraints in the near future. Further, this project will increase
our fee-for-service, secured cash flow stream, thereby adding value
to our shareholders."
The Phase 2 LVP Expansion will require Pembina to install five new pump stations,
upgrade six existing pump stations, and add additional operational
storage. As well, Pembina will
reconfigure existing pipelines and build a total of 10 km of new
pipeline from Gordondale to Spirit
River.
The Company's crude oil, condensate and natural gas liquids
("NGL") expansions are being undertaken to help provide adequate
transportation capacity to support western Canada's growing energy industry. Pembina is committed to providing all
customers with safe, reliable and efficient transportation and
related energy services. With customer support having been obtained
for the expansions discussed herein, Pembina is progressing front end engineering
on a Phase 3 crude oil, condensate and NGL pipeline expansion from
Taylor, British Columbia to the
Edmonton/Fort Saskatchewan areas of Alberta.
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 nearly 60 years. Pembina owns and operates: pipelines
that transport conventional and synthetic crude oil and natural gas
liquids produced in western Canada; oil sands and heavy oil pipelines; 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 multiple steps of the hydrocarbon value
chain.
Pembina is a trusted member of
the communities in which it operates and is committed to generating
value for its investors by running its businesses in a safe,
environmentally responsible manner that is respectful of community
stakeholders.
Pembina provides monthly cash
dividends to its shareholders. Pembina's common shares and convertible
debentures are traded on the Toronto Stock Exchange under the symbols PPL,
PPL.DB.C, PPL.DB.E and PPL.DB.F respectively. Pembina's common shares are traded on the New
York Stock Exchange under the symbol PBA.
Forward-Looking Information and Statements
This news release contains certain forward-looking
information and 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 "expects", "will", "plans", "anticipates" and
similar expressions.
In particular, this news release contains forward-looking
information and statements relating to: (i) the expected in-service
dates of the Phase 1 and 2 LVP Expansions (collectively, the
"Expansions"); (ii) the designed capacity of the Expansions; (iii)
the estimated cost to construct the Expansions; and (iv) industry
exploration and development activity levels. These forward-looking
statements are based on certain assumptions including: that the
in-service date of the Phase 1 LVP Expansion will be October 2013 and the Phase 2 LVP Expansion will
be late 2014; that the designed capacity of the Phase 1 LVP
Expansion will be 195,000 bpd and the Phase 2 LVP Expansion will be
250,000 bpd; that favourable growth parameters continue to exist in
respect of current and future growth projects (including the
ability to finance such projects on favourable terms); that
Pembina is able to reach
commercial arrangements with its customers at a satisfying level;
and that Pembina's businesses will
continue to achieve sustainable financial results.
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: 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;
regulatory environment and inability to obtain required regulatory
approvals; tax laws and treatment; fluctuations in operating
results; the ability of Pembina to
raise sufficient capital to complete future projects and satisfy
future commitments; 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
for the year ended December 31, 2011
and its Annual Information Form for the year ended December 31, 2011, which can be found at
www.sedar.com.
Accordingly, readers are cautioned that events or
circumstances could cause results to differ materially from those
predicted, forecasted or projected. Such forward-looking statements
are expressly qualified by the above statements. 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.
All dollar values are in Canadian dollars unless otherwise
stated.
SOURCE Pembina Pipeline Corporation