CALGARY, Alberta, April 11, 2016 /PRNewswire/ -- Pembina
Pipeline Corporation ("Pembina" or
"the Company") (TSX: PPL; NYSE: PBA) is pleased to announce a joint
feasibility study with the Petrochemical Industries Company K.S.C.
("PIC"), a subsidiary of the Kuwait Petroleum Corporation, for the
evaluation of a world-scale combined propane dehydrogenation
("PDH") and polypropylene upgrading facility in Alberta (the "Project").
This Project represents an opportunity to develop crucial new
market demand for propane in the Province of Alberta. Over the past decade, approximately
85 percent of Alberta's propane
production has been exported across North
America. Developing Alberta
based, value-add infrastructure will increase local propane demand
benefitting Alberta's oil and gas
producers, as well as the Province, by increasing regional economic
activity and tax base. The Project could consume approximately
35,000 barrels per day ("bpd") of propane and produce up to 800,000
metric tonnes per year of polypropylene.
The polypropylene would be transported in a pellet form to
markets across North America and
internationally. Polypropylene is one of the world's most commonly
used polymers, traditional uses include automobile plastics,
medical supplies, home appliances, transparent containers as well
as numerous other applications.
With access to the largest supply of propane in the Western
Canadian Sedimentary Basin, Pembina is ideally suited to facilitate the
development of this Project. Once the construction of Pembina's remaining third fractionator is
complete, Pembina will have over
200,000 bpd of fractionation capacity and will control
approximately 60,000 bpd of propane supply in the Fort Saskatchewan area, as well as additional
supply originating from Empress,
Alberta.
Pembina and PIC will undertake
a detailed technical, financial and commercial study to confirm if
the development of the Project is economically feasible and aligns
with each party's respective investment criteria. This study is
expected to take approximately six months, followed by Pembina and PIC approval to proceed to Front
End Engineering Design. The final investment decision is expected
to be made by the middle of 2017. Subject to regulatory,
environmental and Pembina's Board
of Directors' approval, the Project is expected to be in service by
2020.
"This Project potentially builds on both Pembina's position as the largest supplier to
Alberta's existing petrochemical
industry, as well as being one of Canada's leading energy infrastructure
companies," said Mick Dilger,
Pembina's President and Chief
Executive Officer. "Developing this Project represents another
natural extension of our natural gas liquids value chain and is a
logical step for additional seamless integration with our existing
asset base."
"PIC is very excited to be evaluating the feasibility of the
Project," said Mohammed Abdullatif
Al-Farhoud, PIC's Chief Executive Officer. "Alberta represents a very attractive market to
develop large-scale petrochemical infrastructure, as it is
supported by long-term feedstock security, a supportive local
government and complements the existing asset base of a number of
PIC's and related companies operating in Alberta. Moreover, this opportunity further
supports PIC's continued efforts in expanding its business
portfolio globally. PIC is always in search for exceptional
investment and partnership opportunities, especially in the
promising regions with advantageous feedstock and market."
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 products derived from natural
gas and hydrocarbon liquids produced in Western Canada and North Dakota. The Company also owns and
operates gas gathering and processing facilities and an oil and
natural gas liquids infrastructure and logistics business.
Pembina's integrated assets and
commercial operations along the entire hydrocarbon value chain
allow it to offer a full spectrum of midstream and marketing
services to the energy sector. Pembina is committed to working with its
community and aboriginal neighbours, while providing value for
investors in a safe, environmentally responsible manner. This
balanced approach to operating ensures the trust Pembina builds among all of its stakeholders
is sustainable over the long-term. Pembina's common shares trade on the
Toronto and New York stock exchanges under PPL and PBA,
respectively, with investment grade credit rating of BBB by both
Standard & Poor's and DBRS. For more information, visit
www.pembina.com.
About PIC
PIC is a subsidiary of Kuwait Petroleum Corporation and a
producer of ammonia, urea fertilizer and polypropylene in
Kuwait. In addition PIC is a joint
venture partner with others in Kuwait involved in the production of Ethylene,
Polyethylene , Ethylene Glycol , Styrene Monomer, Para-xylene,
Benzene. PIC is a joint venture partner with others outside of
Kuwait involved in the production
of Ammonia, Methanol, Ethylene Glycol, and Polyethylene
Terephthalate . PIC has been operating in Alberta since 2004 through various investments
including those in the petrochemical industry. Additionally,
PIC's parent company, Kuwait Petroleum Company, is owned by the
State of Kuwait, who currently has
a sovereign credit rating of Aa2 by Moody's and AA by Standard
& Poor's.
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", "would", "could", "plans",
"anticipates", "schedule", "potential" and similar expressions
suggesting future events or future performance.
In particular, this document contains forward-looking
statements, pertaining to, without limitation, the following: the
anticipated timing of the feasibility study, the financial
investment decision and the potential in-service date of the
project, the expected economic benefits and anticipated production
of polypropylene, the method of transportation of polypropylene,
demand for propane and the benefits therefrom, Pembina's corporate strategy; planning,
capital expenditure estimates, schedules, expected capacity and
supply, incremental volumes, processing, transportation,
fractionation, and services commitments and contracts and
operations with respect to Company projects; the ongoing
utilization and expansions of and additions to Pembina's business and asset base, growth and
growth potential; the development and expected timing of new
business initiatives and growth opportunities and the benefits
thereof.
The forward-looking statements are based on certain
assumptions that Pembina has made
in respect thereof as at the date of this news release regarding,
among other things, that favourable growth parameters continue to
exist in respect of current and future growth projects, oil and gas
industry exploration and development activity levels and the
geographic region of such activity; ongoing utilization and future
expansion, development, growth and performance of Pembina's business and asset base; future
demand for processing, fractionation and pipeline transportation
services and new opportunities; prevailing commodity prices and
exchange rates and the ability of Pembina to maintain current credit ratings;
future operating costs; geotechnical and integrity costs; that any
required commercial agreements can be reached; that all required
corporate, regulatory and environmental approvals can be obtained
on the necessary terms in a timely manner; that counterparties will
comply with contracts in a timely manner; that there are no
unforeseen material costs relating to the facilities which are not
recoverable from customers; interest and tax rates; prevailing
regulatory, tax and environmental laws and regulations; maintenance
of operating margins; the amount of future liabilities relating to
environmental incidents; and the availability of coverage under
Pembina's insurance policies
(including in respect of Pembina's
business interruption insurance policy).
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. These forward-looking
statements are not guarantees of future performance and are subject
to a number of known and unknown risks and uncertainties including,
but not limited to: the results of the feasibility study, the
regulatory environment and the ability to obtain required
regulatory, corporate, environmental approvals; the impact of
competitive entities and pricing; labour and material shortages;
strength and operations of the oil and natural gas production
industry and related commodity prices; 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 changes in tax laws and treatment,
changes in royalty rates or increased environmental regulation;
fluctuations in operating results; adverse general economic and
market conditions in Canada,
North America and elsewhere,
including changes in interest rates, foreign currency exchange
rates and commodity prices; and certain other risks detailed from
time to time in Pembina's public
disclosure documents available at www.sedar.com. This list of risk
factors should not be construed as exhaustive.
Readers are cautioned that events or circumstances could
cause results to differ materially from those predicted, forecasted
or projected. 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 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.
Investor Inquires: Scott Burrows,
Vice President, Finance and CFO, (403) 231-3156, 1-855-880-7404,
e-mail: investor-relations@pembina.com, www.pembina.com; Media
Inquiries: Tanis Fiss, Supervisor,
External Communications, (403) 817-7131, e-mail:
media@pembina.com