CALGARY, Jan. 31, 2019 /PRNewswire/ - Pembina Pipeline
Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA)
announced today that it has approved an additional expansion of its
Peace Pipeline system ("Phase VIII"), which will accommodate
incremental customer demand in the Montney area by debottlenecking constraints,
accessing downstream capacity, and further enhancing product
segregation on the system. Phase VIII has an estimated capital cost
of approximately $500 million and is
supported by 10-year contracts with significant take-or-pay
provisions. Phase VIII is anticipated to be placed into service in
stages starting in 2020 through the first half of 2022, subject to
regulatory and environmental approvals.
"Our strategic footprint continues to provide opportunities to
complete staged expansions, enabling us to deliver timely and
reliable transportation service solutions for our customers,"
stated Mick Dilger, Pembina's
President and Chief Executive Officer. "Our customers continue to
recognize the favorable economics in the Deep Basin and
Montney areas and like us are
pursuing development with a long-term outlook. Further, they
appreciate the new markets we are developing such as the Prince
Rupert Export Terminal and the proposed PDH/PP facility," added Mr.
Dilger.
Phase VIII will include new 10 and 16-inch pipelines in the
Gordondale to La Glace corridor of
Alberta, as well as six new pump
stations or terminal upgrades located between Gordondale and
Fox Creek, Alberta. Phase VIII
will enable segregated pipeline service for ethane-plus and
propane-plus NGL mix from the central Montney area at Gordondale, Alberta, into the Edmonton area for market delivery. It is
expected that the majority of the $500
million capital spending will occur in 2020 and 2021.
The Phase VIII expansion advances Pembina's ultimate vision of
having segregated liquids transportation service for ethane-plus,
propane-plus, crude and condensate across at least four pipelines
between Gordondale, Alberta and
the Edmonton area; as well as
achieving Pembina's fully powered-up market delivery capacity of
1.3 million barrels per day across the Peace and Northern
Pipelines, which could be fully realized with a Phase IX expansion,
currently being engineered.
"The Phase VIII expansion is an exciting development as we are
nearing our ultimate goal of achieving full product segregation
along the entire Peace Pipeline system," said Jason Wiun, Pembina's Senior Vice President and
Chief Operating Officer, Pipelines. "When combined with the Phase
VII expansion, we have signed approximately 160,000 barrels per day
of incremental firm contracts. Through our various staged
expansions, Pembina continues to respond to new service requests
from producers in a reliable, timely and cost-effective manner,"
concluded Mr. Wiun.
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 an
integrated system of pipelines that transport various hydrocarbon
liquids and natural gas products produced primarily in western
Canada. The Company also owns 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 identifying additional opportunities to connect
hydrocarbon production to new demand locations through the
development of infrastructure that would extend Pembina's service
offering even further along the hydrocarbon value chain. These new
developments will contribute to ensuring that hydrocarbons produced
in the Western Canada Sedimentary Basin and the other basins where
Pembina operates can reach the highest value markets throughout the
world.
Pembina strives to provide sustainable, industry-leading total
returns for our investors; reliable and value-added services for
our customers; a net positive impact to communities; and a safe,
respectful, collaborative and fair work culture for our
employees.
Pembina's strategy is to:
- Preserve value by providing safe, environmentally
conscious, cost-effective and reliable services;
- Diversify by providing integrated solutions which
enhance profitability and customer service;
- Implement Growth by pursuing projects or assets that are
expected to generate cash flow per share accretion and capture
long-life, economic hydrocarbon reserves; and
- Secure Global Markets by understanding what the world
needs, where they need it, and delivering it.
Pembina is structured into three Divisions: Pipelines Division,
Facilities Division and Marketing & New Ventures Division.
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 news release contains certain forward-looking
information and statements (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 this news release, such
forward-looking information and statements can be identified by
terminology such as "plans", "will", "would", "could", "expects",
"continue", "anticipate", "potential", "may", and similar
expressions.
In particular, this news release contains forward-looking
statements, pertaining to, without limitation, the following:
planning, construction, capital expenditure estimates, schedules,
regulatory and environmental applications and approvals,
incremental volumes, in-service dates, contractual and fee
arrangements, rights, activities and operations with respect to
planned new construction of, or expansions in relation to Pembina's
and its affiliates' pipeline and infrastructure
expansions; expectations around continuing producer activity
and development and growth of product supply; the ongoing
utilization and expansions of and additions to Pembina's business
and asset base, growth and growth potential; expectations regarding
future demand for transportation and processing services; Pembina's
and its affiliates' corporate strategy; and ongoing negotiations
and discussions with customers for additional 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 news release, regarding, among other
things: that counterparties to material agreements will
continue to perform in a timely manner; that Pembina's joint
venture partners will continue to provide support joint venture
projects; the ability of Pembina and any required third parties to
effectively engage with stakeholders; oil and gas industry
exploration and development activity levels; the success of
Pembina's operations and growth projects; prevailing commodity
prices, margins, volumes and exchange rates; that Pembina's future
results of operations will be consistent with past performance and
management expectations in relation thereto; the continued
availability of capital at attractive prices to fund future capital
requirements relating to existing assets and projects, including
but not limited to future capital expenditures relating to
expansion, upgrades and maintenance shutdowns; that any third party
projects relating to Pembina's growth projects will be sanctioned
and completed as expected; that any required commercial agreements
can be reached; that all required regulatory and environmental
approvals can be obtained on the necessary terms in a timely
manner; that there are no unforeseen events preventing the
performance of contracts; that there are no unforeseen material
construction, integrity or other costs related to current growth
projects or current operations; and prevailing interest and tax
rates.
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. These known and unknown risks and uncertainties,
include, but are not limited to: the regulatory environment
and decisions; the ability of Pembina or its joint venture
partners or customers to raise sufficient capital (or to raise
sufficient capital on favourable terms) to fund future expansions
and growth projects and satisfy future commitments; failure to
negotiate and conclude any required commercial agreements or
failure to obtain project sanctioning; increased construction
costs, or construction delays, on Pembina's expansion and growth
projects; labour and material shortages; non-performance of
agreements in accordance with their terms; 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;
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;
construction delays; labour and material shortages; and certain
other risks detailed from time to time in Pembina's public
disclosure documents including, among other things, those detailed
under the heading "Risk Factors" in Pembina's management's
discussion and analysis and annual information form for the year
ended December 31,
2017, which can be found
at www.sedar.com.
The forward-looking statements are expressly qualified by the
above statements and 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.
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SOURCE Pembina Pipeline Corporation