CALGARY, Feb. 16, 2017 /CNW/ - Pembina Pipeline
Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA)
announced today that it has entered into a 20-year infrastructure
development and service agreement (the "Agreement") with Chevron
Canada Limited ("Chevron").
The Agreement includes an area of dedication by Chevron, in
excess of 10 gross operated townships (over 230,000 acres),
concentrated in the prolific, liquids-rich Kaybob region of the
Duvernay resource play near
Fox Creek, Alberta. Under the
Agreement and subject to Chevron sanctioning development in the
region, Chevron has the right to require Pembina to construct, own
and operate gas gathering pipelines and processing facilities,
liquids stabilization facilities and other supporting
infrastructure for the area of dedication, together with Pembina
providing long-term service for Chevron on its pipelines and
fractionation facilities. Subject to Chevron and regulatory
approvals, the infrastructure developed over the term of this
Agreement has the potential to represent a multi-billion dollar
investment by Pembina.
"This Agreement represents an ideal long-term growth opportunity
for Pembina, as it substantially strengthens our competitive
positioning in a world-class resource play with long-life
hydrocarbon resources, and provides for the opportunity to deploy a
significant amount of capital under a low-risk, long-term
commercial framework that aligns with our guard rails," said
Stuart Taylor, Pembina's Senior Vice
President, NGL & Natural Gas Facilities. "Being selected as the
provider of choice for this service demonstrates the advantages
associated with our safety record, relationships with the
communities and, integrated service offering."
Pembina is ideally suited to develop infrastructure under the
Agreement, as gas processing facilities will leverage Pembina's
existing 100 million cubic feet per day design, and stabilization
infrastructure will be based on the design work for Pembina's
previously announced Duvernay Field Hub, which is already under
development for Chevron. Further, Pembina is in the process of
building out its downstream capacity, which will give line-of-sight
to a full suite of midstream and transportation services for
Chevron.
"The Agreement is transformational for Pembina's Gas Services
business, securing a long-term platform for growth supported by one
of the largest lease holders in the Duvernay resource play," said Jaret Sprott, Pembina's Vice President, Gas
Services. "Industry has made significant strides in improving the
economic viability of the Duvernay
and we are looking to further this progress by building a
large-scale, strategic, integrated network of assets. Additionally,
the Agreement provides for the opportunity to optimize our business
to secure incremental third-party volumes."
While this agreement and respective obligations of the parties
are binding, infrastructure development remains contingent upon
Chevron sanctioning, as well as necessary environmental and
regulatory approvals.
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 primarily 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. Pembina's integrated
assets and commercial operations along the majority of the
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 "potential", "could", "expects",
"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, expected term, services commitments and contracts and
operations with respect to the Agreement and other projects;
anticipated synergies and additional benefits and growth
opportunities; 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, 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; 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 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