CALGARY, Sept. 28, 2017 /CNW/ - Pembina Pipeline
Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA)
announced today that in order to accommodate incremental volume
commitments from customers, the Company is adding additional
infrastructure and increasing operational flexibilities to its
previously announced Phase V pipeline expansion ("Phase V"), which
included a 20 inch pipeline from Lator to Fox Creek, Alberta. The Company is also
revising its capital cost estimate for Phase V by an additional
$135 million for a total capital cost
of $385 million.
The Company's Conventional Pipelines' business has continued to
receive customer demand for its transportation services. Since
Phase V was originally announced in April
2017, Pembina has secured approximately 30,000 barrels per
day in additional volume commitments.
The Phase V capital cost estimate revision is a result of:
- $90 million towards increased
receipt station functionality at Lator by adding 40,000 barrels of
operational crude and condensate storage, new tie-ins and site
modifications, a new pump station near Dawson Creek, British Columbia ("B.C.") and
upgrading an existing pump station at Gordondale, Alberta; and
- $45 million due to capital cost
refinements, including changes to volume receipt locations.
Through the Phase V project enhancements, the pipeline capacity
will be increased by an incremental 45,000 barrels per day ("bpd")
upstream of Laglace, Alberta. In
addition to accommodating further customer demand, this will
improve operational efficiencies and offer more optionality, which
will ultimately provide a better service offering for Pembina's
customers.
Phase V is aimed at addressing capacity constraints between
Lator and Fox Creek and supporting
future growth in the Montney and
Deep Basin resource plays. The project is expected to provide
additional capacity in this corridor and access to Pembina's
downstream capacity at Fox Creek.
Clearing and access to the right-of-way is now 90 percent complete
with construction expected to commence shortly. The Company
continues to anticipate bringing Phase V into service in late-2018.
Once operational, Pembina will have three distinct pipelines
between Lator and Fox Creek.
The Company also continues to progress regulatory approvals,
design and engineering of the two pump stations for its previously
announced Phase IV pipeline expansion ("Phase IV"). Phase IV will
increase capacity between Fox
Creek and Namao,
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 over 60 years. Pembina owns
and operates an integrated system of pipelines that transport
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 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 "estimate", "will", "expects", "continue",
"anticipate", "potential", and similar expressions.
In particular, this news release contains forward-looking
statements, relating to planning, construction, capital expenditure
estimates, schedules, expected capacity, incremental volumes,
in-service dates, rights, activities and operations with respect to
planned new construction of, or expansions in relation to Pembina's
Phase IV and V pipeline expansions; expectations around
continuing producer activity and development; 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 services; expectations regarding
synergies and integration of growth and development projects with
Pembina's existing business and asset base. 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:
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 counterparties to material agreements will continue to
perform in a timely manner; that there are no unforeseen events
preventing the performance of contracts; and that there are no
unforeseen material construction, integrity or other costs related
to current growth projects or current operations.
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 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, 2016, 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.
SOURCE Pembina Pipeline Corporation