Long-term agreement with Mosaic Energy Ltd. underpins
$170 million gas plant expansion and
associated new gathering pipeline
CALGARY,
Oct. 10, 2014 /CNW/ - Pembina
Pipeline Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE:
PBA) announced today that it has entered into commercial agreements
to proceed with a $170 million
expansion of the Company's recently completed Resthaven Facility (a
200 million cubic feet per day ("MMcf/d") (134 MMcf/d net to
Pembina) gas processing facility) and to build, own and operate a
new gas gathering pipeline that will deliver gas into the Resthaven
Facility (collectively, the "Resthaven Expansion" or "the
Project").
The Resthaven Expansion is underpinned by a
long-term, fee-for-service contract with Mosaic Energy Ltd.
("Mosaic"). The gas processing expansion component of the Project
is expected to cost approximately $105
million (gross) and increase capacity of the existing
Resthaven Facility by an additional 100 MMcf/d (gross), bringing
total capacity to 300 MMcf/d (gross). To support this expansion,
Pembina plans to build a $65 million,
28 kilometer 12" gas gathering pipeline that will connect the
customer's condensate recovery plant into the Resthaven Facility.
Should all the partners in the existing Resthaven Facility
participate in the Project, Pembina's capital for the plant will
decrease to $75 million and its
incremental expansion capacity will be 69 MMcf/d (net). The
additional natural gas liquids that will be extracted from the
processed gas will be transported on the recently constructed
Resthaven lateral.
Subject to regulatory and environmental approvals,
the pipeline is expected to be in-service by the second quarter of
2015, followed by the gas processing expansion in mid 2016.
With the additional new volumes at the Resthaven
Facility, Pembina has also signed a long-term contract with Mosaic
for Phase III pipeline capacity and fractionation capacity at the
Company's Redwater fractionation
and storage facility.
"This is an exciting opportunity given the
attractive regional geology, including the Montney, Wilrich and other cretaceous reserve
potential," said Stuart Taylor,
Pembina's Senior Vice President, NGL and Natural Gas Facilities.
"We are pleased to have secured long-term binding agreements to
expand our Resthaven facility, build a new pipeline lateral and
provide fractionation services to support our customers'
development. Being able to provide bundled services allows us to be
the "one-stop-shop" solution for our customers. This project again
demonstrates the value of our vertically integrated approach."
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.
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", "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: the
planned capacity of the proposed Resthaven Expansion; the
anticipated capital cost of the Resthaven Expansion and pipeline
lateral; the expected in-service date of the Resthaven Expansion
and pipeline lateral; the ongoing utilization and expansions of and
additions to Pembina's business and asset base, growth and growth
potential; anticipated business integration and the benefits
thereof. 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 third parties will provide any required support;
that third parties will fulfill their obligations under current and
future agreements; that there are no unanticipated changes to the
regulatory or commercial environment in which the Resthaven
Facility is operated; that third party partners in the Resthaven
Facility continue to support the Project; ongoing utilization and
future expansion, development, growth and performance of Pembina's
business and asset base; future demand for fractionation 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 failure of third parties to fulfill their
obligations under current or future agreements; the inability of
Pembina to secure any required third party support; 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
Image with caption: "Pembina Pipeline is expanding the Resthaven
gas processing facility (CNW Group/Pembina Pipeline Corporation)".
Image available at:
http://photos.newswire.ca/images/download/20141010_C7465_PHOTO_EN_42992.jpg