CALGARY, April 11, 2017 /CNW/ - Pembina Pipeline
Corporation ("Pembina" or "the Company") (TSX: PPL; NYSE: PBA) is
pleased to provide an update on its natural gas liquids value chain
strategy. This update includes progress on the Company's plans to
develop a west coast liquefied petroleum gas ("LPG") export
terminal (the "West Coast Terminal" or the "Project") as well as an
update regarding activity in the Company's Gas Services
business.
West Coast Terminal Update
The Company announced that it has signed a non-binding letter of
intent ("LOI") with Prince Rupert Legacy Inc., (a wholly-owned
subsidiary of the City of Prince
Rupert) for the Company to develop a West Coast Terminal on
Watson Island, lands wholly owned by Prince Rupert Legacy.
Under the LOI, Pembina has commenced site assessment and
engagement with key stakeholders including aboriginal communities.
Initial assessments of the site indicate it is ideal for the
development of an export terminal with a capacity of approximately
20,000 barrels per day of LPG export with an associated capital
cost ranging between $125 million and $175
million. Pembina expects a project timeline of two years
from final investment decision. The Project is subject to
completion of design and engineering requirements, Pembina entering
into appropriate definitive agreements, the receipt of necessary
environmental and regulatory permits, and the approval of Pembina's
Board of Directors.
"Watson Island has promising potential as an LPG export terminal
location," said Stuart Taylor,
Senior Vice President, NGL & Natural Gas Facilities. "In light
of our plans to develop a world-scale polypropylene production
facility, the smaller export facility we are contemplating for
Watson Island – utilizing smaller ships and ensuring very
competitive per-unit export facility costs – makes good sense for
Pembina."
Located approximately 15 kilometres south of Prince Rupert, British Columbia, the Watson
Island site has many positive attributes which make it an
attractive candidate for Pembina's West Coast Terminal. The
location features a sheltered berth, existing dock adequate for
activities associated with LPG export, as well as well-established
rail connections between Redwater,
Alberta and Watson Island, while also offering efficient
shipping routes to Asian, North, Central, and South American
markets. In support of this Project, Pembina has already secured a
long-term export permit.
The Company has been working towards the development of an LPG
export terminal served by a national railway on the west coast of
Canada for the past several years
in anticipation of and response to the step change in LPG
productive capability of the Western Canadian Sedimentary Basin.
Pembina's objective with this Project is to provide growing
Canadian LPG supply with access to diverse, international markets,
while complementing Pembina's expanding integrated service offering
for energy products derived from natural gas.
"Pembina is excited to advance its West Coast Propane export
strategy," said Mr. Taylor. "This Project, in conjunction with
Pembina's proposed integrated propylene and polypropylene
production facilities, is evidence of our efforts to find new
markets for western Canadian hydrocarbons which should benefit our
producer customers, local communities, partners and
shareholders."
Gas Services Activity
Pembina continues to work on engineering for several initiatives
in the Duvernay area with the aim
of expanding its asset base and increasing its level of customer
service. The Company is advancing engineering for its 100 million
cubic feet per day Duvernay II facility, a replica of its Duvernay
I facility, and has begun preliminary engineering for substantial
liquids handling and stabilization at the Duvernay I facility site,
as well as work to connect Pembina's facilities into alternative
sales gas pipelines in response to customer demand in the area.
The Duvernay I facility, along with the associated field hub,
is expected to come into service on time and on budget in the
fourth quarter of 2017.
Pembina is also currently expanding the Kakwa River Facility
gathering and inlet facilities to accommodate incremental
development along with increasing liquids handling capabilities for
Seven Generations Energy. The Company does not expect this
work to have a material impact on its 2017 capital budget.
"Our strategic position in the prolific, liquids-rich areas of
the Alberta Montney and Duvernay
continues to provide opportunities for us to expand our service
offering for our customers," said Jaret
Sprott, Pembina's Vice President, Gas Services. "We are very
encouraged by the increasing level of activity in the areas of our
existing and planned facilities."
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. Pembina's preferred shares also trade on the
Toronto stock exchange. For more
information, visit www.pembina.com.
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", "objective",
"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 site assessment and feasibility study;
Pembina's corporate strategy, integration of assets and synergies
with the Project; anticipated market supply and demand for propane;
planning, expected business partners, growth opportunities and
benefits from the Project.
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.
SOURCE Pembina Pipeline Corporation