Regulatory application marks project milestone
CALGARY,
Sept. 4, 2014 /PRNewswire/ - Pembina
Pipeline Corporation ("Pembina" or "the Company") (TSX: PPL; NYSE:
PBA) announced that it has filed the necessary regulatory
applications to the Alberta Energy Regulator ("AER") for its
Fox Creek, Alberta to Namao
Junction, Alberta segment of its
previously announced $2 billion Phase
III pipeline expansion (the "Phase III Expansion").
The Fox Creek
to Namao Junction project (the "Project") consists of a new, 24"
diameter pipeline that will span approximately 270 kilometres in
length. The pipeline will originate from a tie-in point located at
Pembina's existing pump station at Fox
Creek and terminate at a tie-in point located at Pembina's
existing facility at Namao Junction. Pembina expects this segment
to have an initial capacity of 320,000 barrels per day ("bpd") and
an ultimate capacity of over 500,000 bpd with the addition of
midpoint pump stations. As part of the Project, Pembina has also
completed consultation related to, and applied to the AER for, an
additional 16" diameter pipeline from Fox
Creek to Namao (this filing
was submitted at the same time as the 24" pipeline). The Company's
decision to construct this second 16" pipeline is pending
commercial support as of the date of this release. Pembina expects
to make a decision on the second pipeline later this year.
"We are very excited to reach this milestone for
the core component of our Phase III Expansion," said Jason Wiun, Pembina's Vice President,
Conventional Pipelines. "The proposed pipeline from Fox Creek into Namao will be constructed using existing
rights-of-way where possible to minimize impact on the land and
environment. At the outset of the Project, we committed to filing
our regulatory applications at the beginning of September, and
we've delivered on that promise. We look forward to continuing to
work with the AER, local communities, stakeholders and Aboriginal
communities as we advance this Project."
Subject to regulatory approval, Pembina expects the Project to
be in-service between late-2016 and mid-2017.
Pembina will provide information updates during
the development of the Project and, if approved, during
implementation so that stakeholders, communities, First Nations and
other groups or individuals with interests in the area are informed
of the Company's activities. Pembina has a strong reputation for
constructing and operating facilities which meet or exceed AER
safety and environmental protection regulations and guidelines, and
the Company is committed to responsible development throughout the
life of this and all its projects.
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 60 years.
Pembina owns and operates pipelines that transport various
hydrocarbon liquids including conventional and synthetic crude oil,
heavy oil and oil sands products, condensate (diluent) and natural
gas liquids produced 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. 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 the hydrocarbon value chain.
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", "expand",
"would", "plans" and similar expressions suggesting future events
or future performance.
In particular, this document contains
forward-looking statements, pertaining to, without limitation, the
following: Pembina's corporate strategy; planning, construction,
capital expenditure estimates, schedules, expected capacity,
incremental volumes, in-service dates, and operations with respect
to the Phase III Expansion; expectations regarding future demand
for transportation services; and expectations regarding supply and
demand factors. 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: that counterparties will comply with contracts
in a timely manner; that there are no unforeseen events preventing
the performance of contracts or the completion of the Phase III
Expansion; that Pembina will obtain required regulatory approvals
on a timely basis; maintenance of operating margins; ongoing
utilization and future expansion, development, growth and
performance of Pembina's business and asset base; future demand for
transportation services; future levels of oil and natural gas
development in proximity to Pembina's pipelines and other assets
(which could be affected by, among other things, possible changes
to applicable royalty and tax regimes); future acquisitions, growth
and growth potential in Pembina's operations; additional throughput
potential on additional connections and other initiatives on the
Conventional Pipelines systems; expected Phase III Expansion
start-up and construction dates; and future financing capability
and sources.
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.
The actual results of Pembina could differ
materially from those anticipated in these forward-looking
statements as a result of material risk factors including, but not
limited to: the regulatory environment and decisions, and the
inability to obtain required regulatory approvals; the impact of
competitive entities and pricing; reliance on key relationships 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; 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 increased
environmental regulation; unexpected increases in capital costs for
the Phase III expansion; adverse general economic and market
conditions in Canada, North America and elsewhere; lower than
anticipated results of operations and accretion from Pembina's
business initiatives; and the ability of Pembina to raise
sufficient capital (or to raise capital on favourable terms) to
complete future projects and satisfy future commitments.
These factors should not be construed as
exhaustive. Unless required by law, Pembina does not undertake any
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. Any forward-looking statements contained herein are
expressly qualified by this cautionary statement.
Pembina Pipeline® is a registered trademark of Pembina
Pipeline Corporation.
SOURCE Pembina Pipeline Corporation