CALGARY, Alberta, Nov. 11,
2014 /PRNewswire/ -- Pembina Pipeline Corporation ("Pembina"
or the "Company") (TSX: PPL; NYSE: PBA) announced today that it has
entered into binding agreements to proceed with a $210 million expansion to Pembina's pipeline
infrastructure in northeast British
Columbia ("B.C.") (the "NEBC Expansion" or "the Project").
The NEBC Expansion will transport condensate and natural gas
liquids for various producers in the liquids-rich Montney resource play.
"Pembina has been actively engaging with producers regarding the
development of the Montney play,"
said Jason Wiun, Pembina's Vice
President, Conventional Pipelines. "With significant exploration in
the area, our customers are looking for a solution for their
liquids production. The NEBC Expansion will allow us to provide
customers with a cost-effective transportation solution for this
production and access to Pembina's existing infrastructure at
Taylor, B.C. which feeds into the
Edmonton, Alberta area market
hub."
The Project entails the construction of approximately 160
kilometres of up to 12-inch diametre pipeline with a base capacity
of up to 75,000 barrels per day that will parallel the Company's
Blueberry pipeline system northwest of Taylor, B.C. to the Highway/Blair Creek area
of B.C. Subject to regulatory and environmental approval, Pembina
anticipates bringing the NEBC Expansion on-stream in the second
quarter to fourth quarter of 2017 timeframe.
The Project is underpinned by a long-term, cost-of-service
agreement with an anchor tenant. Volumes aggregated by the NEBC
Expansion will feed into Pembina's Phase III pipeline expansion
downstream of Taylor, B.C. (the
"Phase III Expansion").
"The NEBC Expansion is a great opportunity for us as it further
supports the economics of our Phase III Expansion," said Mr. Wiun.
"We have been expanding our infrastructure across the Alberta portion of the Western Canadian
Sedimentary Basin and are very excited to have the opportunity to
extend our service to our customers in B.C. The Project not only
benefits our customers, it also benefits our investors as we are
able to add additional value through our integrated service
offering."
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", "entails", "considering", "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: the
incremental volumes, expected length, size, expected in-service
date and capital expenditure estimates for the NEBC Expansion; the
ongoing utilization and expansions of and additions to Pembina's
business and asset base, growth and growth potential; anticipated
synergies of the NEBC Expansion with existing infrastructure and
projects, and 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 NEBC Expansion in
planned; that third party partners continue to provide any required
support for the NEBC Expansion; 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; potential revenue
and cash flow enhancement; and 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.
For further information:
Investor Inquiries:
Scott Burrows
Vice President, Capital Markets
+1-403-231-3156
+1-855-880-7404
e-mail: investor-relations@pembina.com
Media Inquiries:
Laura Lunt
Senior Manager, Regulatory, Environment & External
Relations
+1-403-231-7500