By Judy McKinnon
Pembina Pipeline Corp. Tuesday said it will build a propane
export terminal in Portland, Oregon, which will allow propane
derived from natural gas produced in Western Canada to be shipped
to international markets.
The Canadian pipeline company also said it has agreed to buy the
recently constructed Vantage ethane pipeline extending from North
Dakota's Bakken shale to Alberta, and related assets, for $650
million.
"Vantage provides long-term, fee-for-service cash flow and
strategic access to the prolific and growing North Dakota Bakken
play for future natural gas liquids opportunities," the company
said in a statement.
Calgary, Alberta-based Pembina said it plans to fund the
pipeline purchase with $395 million in cash and with an issue of
$255 million of shares to the seller, Riverstone Holdings LLC.
Part of the cash consideration will be funded with
preferred-share offering to raise 150 million Canadian dollars
($138 million).
For its planned 37,000-barrel-a-day propane export facility on
the U.S. west coast, Pembina said it plans to invest about $500
million. It expects the facility to be in service by early
2018.
Pembina said the project is subject to definitive agreements,
and the receipt of all environmental and regulatory permits and
approvals.
The company said it signed an agreement last week for the
terminal site and an existing marine berth within the city of
Portland, which allows it to begin consultations for the
project.
"Signing the terminal agreement is a tremendous milestone for
the project," said Mick Dilger, Pembina's president and chief
executive. "It marks the beginning of consulting and engaging with
stakeholders, governments and the environmental and regulatory
authorities," he said.
Write to Judy McKinnon at judy.mckinnon@wsj.com
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