CALGARY, Alberta, March 18, 2016 /PRNewswire/ -- Pembina
Pipeline Corporation ("Pembina" or
"the Company") (TSX: PPL; NYSE: PBA) is pleased to provide an
update regarding commissioning and other developments for projects
within the Company's Midstream business.
Crude Oil Midstream
Pembina's crude oil midstream
business continues to progress its Canadian Diluent Hub ("CDH").
CDH is expected to be the primary access point for Oilsands
producers to source a significant and growing supply of
domestically produced condensate, from the Montney, Deep Basin and Duvernay developments delivered from
Pembina's Peace Pipeline and
Redwater Fractionators. The Company has agreements in place
for downstream connections to third-party diluent pipelines. The
interconnections with multiple diluent pipelines represents an
initial aggregate take-away capacity in excess of 400,000 barrels
per day ("bpd"). A detailed Class 3 engineering estimate for the
infrastructure is complete and long-lead equipment orders are being
finalized. As a result of project optimization and lower forecast
costs, the expected capital cost of the project is now
approximately $250 million, reduced
from the original $350 million
previously announced. The in-service date of the project is
expected to be mid-2017, subject to regulatory and environmental
approval.
In March, Pembina commissioned
three new storage tanks at its Edmonton North Terminal ("ENT").
These storage tanks will provide a total of 550,000 barrels of
additional crude oil storage capacity, more than doubling the total
capacity of ENT. Originally expected to be placed into service in
mid-2016 with an anticipated capital cost of $75 million, the project was completed both ahead
of schedule and under budget. "This large scale expansion of ENT
will enhance the operations of Pembina's Crude Oil Midstream business and
provide additional optionality for our customers," said
Bob Jones, Pembina's Vice President, Midstream Crude Oil
& Condensate.
Natural Gas Liquids Midstream
Pembina's Natural Gas Liquids
Midstream business will have commissioned the second 73,000 bpd
fractionator at the Company's Redwater complex ("RFS II") by the end of
March. RFS II was completed substantially on budget and one quarter
later than originally expected. Underpinning RFS II are ten year,
take-or-pay agreements for the entire operating capacity of the
facility. Additionally, the design of RFS II benefits from
significant operational improvements and other modifications that
have been made to Pembina's
existing Redwater fractionator
over the years.
With RFS II in service by the end of March, Pembina's Redwater fractionation capacity will more than
double to 155,000 bpd, inclusive of the previously announced
debottleneck of the existing fractionator. "The completion of RFS
II is a significant milestone for Pembina's Midstream business and represents
the first new fractionator built in Alberta in 20 years," said Robert Lock, Pembina's Vice President, Natural Gas
Liquids.
"By commissioning RFS II and the new storage tanks at ENT and
advancing CDH, Pembina continues
to progress our strategic objectives of developing large-scale,
fee-for-service assets that provide high value services to our
customers," said Mick Dilger,
Pembina's President and Chief
Executive Officer. "Most importantly, our exemplary safety and
operations record was maintained across all of these projects from
construction through to commissioning – which is even more
impressive, given both ENT and RFS II were constructed within
operating 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 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
http://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", "would", "plans", "anticipates",
"schedule", and similar expressions suggesting future events
or future performance.
In particular, this document contains forward-looking
statements, pertaining to, without limitation, the following: CDH,
ENT and RFS II, including the planning, capital expenditure
estimates, schedules, expected capacity and in-service dates in
respect of those projects; Pembina's corporate
strategy; 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, 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; 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 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 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;
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 Relations: Chelsy Hoy /
Ian McAvity, (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