Long-term agreements underpin new facility near Pembina's
Musreau facility
CALGARY, Aug. 9, 2013 /PRNewswire/ - Pembina Pipeline
Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA),
announced that it plans to construct, own, and operate a new 100
million cubic feet per day ("MMcf/d") shallow cut gas plant
("Musreau II") and associated natural gas liquids ("NGL") and gas
gathering pipelines near its existing Musreau facility (part of the
Company's Cutbank Complex) in west central Alberta.
Musreau II, which is expected to cost approximately $110 million, is underpinned by long-term
contracts with area producers for 100 percent of the facility's
capacity. The facility will be designed to extract propane-plus
(C3+) and is expected to yield approximately 4,200
barrels per day of NGL for transportation on Pembina's Conventional
Pipelines. The Company expects that volumes from the Musreau II
facility will further support its previously announced Conventional
Pipeline expansions. Subject to regulatory and environmental
approval, Pembina expects Musreau II to be in-service in the first
quarter of 2015.
"We are excited to have secured long-term contracts for another
field gas processing and gathering infrastructure development and
services," said Bob Michaleski,
Pembina's Chief Executive Officer. "Musreau II will provide
much-needed processing capacity for our customers located in an
attractive area with strong liquids-rich natural gas supply growth.
Our ability to continue to attract such projects again demonstrates
the value of our vertically integrated service offering - volumes
from Musreau II will find their way to the Redwater area via our expanded Conventional
Pipelines."
Pembina's Gas Services business has 368 MMcf/d net shallow cut
processing capacity, as well as, 205 MMcf/d of deep cut processing
capacity currently in operation, with an additional 200 MMcf/d
expected to be on stream in the third quarter of this year (Saturn
I), another 200 MMcf/d to be on stream in the third quarter of 2014
(Resthaven) and a further 200 MMcf/d on stream in late 2015 (Saturn
II). With the addition of Musreau II, Pembina's gas processing
capacity is expected to reach approximately 1.2 billion cubic feet
per day by the end of 2015.
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, condensate and natural gas liquids produced in western
Canada; oil sands and heavy oil
and diluent 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 span across its operations. Pembina's
integrated assets and commercial operations enable it to offer
services needed by the energy sector along 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.
Forward-Looking Statements & Information
This document contains certain forward-looking statements and
information (collectively, "forward-looking statements") within the
meaning of the "safe harbor" provisions of applicable securities
legislation 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", "estimate", "expand", "would", "could",
"possible" and similar expressions suggesting future events or
future performance.
In particular, this document contains forward-looking
statements, including certain financial outlook, pertaining to,
without limitation, the following: Pembina's business objectives;
the planned capacity of the proposed Musreau II gas plant; the
anticipated capital cost of Musreau II; the expected in-service
date of Musreau II; the ongoing utilization and expansions of and
additions to Pembina's business and asset base, growth and growth
potential; expectations regarding future demand for gas processing;
and expectations regarding supply and demand factors and pricing
for oil and natural gas. These forward-looking statements and
information are being made by Pembina based on certain assumptions
that Pembina has made in respect thereof as at the date of this
document including those discussed below.
With respect to forward-looking statements contained in this
document, Pembina has made assumptions regarding, among other
things: ongoing utilization and future expansion, development,
growth and performance of Pembina's business and asset base; future
demand for gas processing and transportation services; future
levels of oil and natural gas development; and potential revenue
and cash flow enhancement; future cash flows.
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.
None of the forward-looking statements described above are
guarantees of future performance and are subject to a number of
known and unknown risks and uncertainties, including, but not
limited to: 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; lower than
anticipated results of operations and accretion from Pembina's
business initiatives; reduced amounts of cash available for
dividends to shareholders; the ability of Pembina to raise
sufficient capital (or to raise capital on favourable terms) to
complete future projects and satisfy future commitments.
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 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.
All financial figures are in Canadian dollars, unless
otherwise noted.
Pembina Pipeline® is a registered trademark of Pembina
Pipeline Corporation.
SOURCE Pembina Pipeline Corporation