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