CALGARY, June 4, 2015 /CNW/ - Pembina Pipeline
Corporation ("Pembina" or "the Company") (TSX: PPL; NYSE: PBA)
announced that it will expand its existing Horizon Pipeline System
("Horizon") (the "Horizon Expansion") for an estimated capital cost
of approximately $125 million.
The Horizon Expansion will increase the pipeline's capacity up
to 250,000 barrels per day, which will be achieved predominantly
through the upgrading of mainline pump stations and other facility
modifications, as required. Subject to regulatory and environmental
approvals, the Horizon Expansion is expected to be in service
mid-2016.
Andrew Gruszecki, Pembina's Vice President, Oil Sands &
Heavy Oil, commented: "The Horizon Expansion reinforces the
strategic nature of Pembina's
existing Oil Sands & Heavy Oil asset base. Furthermore, the
Horizon Expansion, which is underpinned by a long-term agreement,
will be beneficial to our shareholders by adding to our growing
cost-of-service, low-risk cash flow streams."
Horizon, a 513 kilometre pipeline, was originally commissioned
in 2008 and built to connect Canadian Natural Resources Limited's
Horizon Oil Sands facility to refineries, export pipelines and
other delivery locations in the Edmonton area. Horizon is operated under the
terms of a 25-year fixed return contract, which expires in
2034.
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 various hydrocarbon liquids including
conventional and synthetic crude oil, heavy oil and oil sands
products, condensate (diluent) and NGL produced in western
Canada and ethane produced in
North Dakota. The Company also
owns and operates gas gathering and processing facilities and an
oil and NGL infrastructure and logistics business. With facilities
strategically located in western Canada and in NGL 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") 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" 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 Horizon Expansion; and anticipated
transportation strategies and services. These forward-looking
statements 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 Horizon Expansion; that Pembina will obtain required regulatory
approvals on a timely basis; maintenance of operating margins;
anticipated changes in interest rates, foreign currency exchange,
inflation rates and commodity prices; 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.
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 regulatory environment and decisions, and the
inability to obtain required regulatory approvals; 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;
non-performance or default by counterparties; tax laws and
treatment; fluctuations in operating results; lower than
anticipated results of operations and accretion from Pembina's business initiatives; 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.
Pembina Pipeline® is a registered trademark of Pembina
Pipeline Corporation.
SOURCE Pembina Pipeline Corporation