CALGARY, May 31, 2016 /CNW/ - Pembina Pipeline Corporation
("Pembina" or the "Company") (TSX: PPL; NYSE: PBA) announced today
that it has entered into agreements with a multinational,
investment grade customer to construct associated infrastructure
relating to the Company's previously announced 100 million cubic
feet per day ("MMcf/d") shallow cut gas plant, Duvernay I
("Duvernay I"). The supporting infrastructure includes condensate,
gas and water field handling (the "Field Hub"), a gas gathering
trunk line and a fuel line for a total expected capital cost of
approximately $130 million.
The Field Hub is committed under a long-term,
fixed-return agreement and will connect to the customer's
development well pads providing separation, stabilization and other
supporting services. In addition, Pembina will construct a 35 kilometer gas
gathering trunk line, which creates a gas gathering backbone
between the Tony Creek, Alberta
and Fox Creek, Alberta areas that
will connect the Field Hub to Pembina's Duvernay I facility. The Field Hub
will also connect into Pembina's
Peace Pipeline system. To align with the in service date of
Duvernay I, Pembina anticipates
bringing the Field Hub and the associated infrastructure into
service in the second half of 2017, subject to regulatory and
environmental approval.
Additionally, Pembina executed
a long-term, fee-for-service gas processing agreement at the
Duvernay I facility. With this agreement, Duvernay I is now fully
contracted and Pembina has begun
preliminary engineering on a 'twin' Duvernay II facility.
"Our strategic position in the Duvernay continues to provide opportunities
for us to expand our reach and service offering for our customers,"
said Mr. Jaret Sprott, Pembina's Vice President, Gas Services. "We
are also pleased to be strengthening our relationships with large,
credit worthy counterparties."
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. For more information, visit www.pembina.com.
Forward-Looking Information and Statements
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 "will", "anticipates", 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, capital expenditure estimates, schedules, expected
capacity, in-service dates, 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 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, 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; geotechnical and integrity costs;
that all required 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;
and prevailing regulatory, tax and environmental laws and
regulations;.
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 regulatory environment and the ability to
obtain required regulatory and 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;
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.
SOURCE Pembina Pipeline Corporation