CALGARY, Jan. 5, 2017 /CNW/ - Pembina Pipeline
Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA) has
received regulatory approval for and initiated construction on its
previously announced $235 million
expansion of its pipeline infrastructure in northeast British Columbia ("B.C.") (the "NEBC
Expansion" or "the Project").
"With regulatory sanctioning of the NEBC Expansion, we have
secured approvals for the majority of the projects within our
conventional pipelines business," said Paul
Murphy, Pembina Senior Vice President, Pipelines & Crude
Oil Facilities. "The NEBC Expansion strengthens Pembina's presence
within the prolific geology of northeast B.C. and is located in
close proximity to a variety of area producers who may have future
transportation needs."
The Project entails the construction of approximately 145
kilometres of 12-inch diametre pipeline with a base design capacity
of up to 75,000 barrels per day that will parallel much of the
existing Blueberry pipeline system northwest of Taylor, B.C. to the Highway/Blair Creek area
of B.C. The NEBC Expansion will provide a conduit for natural gas
liquids and condensate produced in the liquids-rich Montney resource play to access the Company's
downstream pipeline systems that feed into markets in the
Edmonton and Fort Saskatchewan, Alberta area. Pembina
anticipates bringing the NEBC Expansion on-stream in late 2017.
Customer Update
As disclosed earlier this year, one of Pembina's customers at
its Resthaven gas processing facility filed for receivership.
Through the receivership process, Pembina continued to provide gas
processing services, while a trustee was engaged as receiver to
sell the customer's assets. The receiver has finalized a purchase
and sale agreement with a privately held corporation. As part of
this purchase and sale agreement, Pembina expects that all
previously executed agreements with Pembina will be assigned and
fully assumed without any modifications. The receiver expects to
close the transaction in the first quarter of 2017.
"The approval of our NEBC Expansion and impending resolution to
this receivership are a great start to 2017," said Mick Dilger, Pembina's President and Chief
Executive Officer. "We are looking forward to the year ahead and
the transformation it will bring for our Company and our
shareholders as we bring the bulk of our assets under construction
into service and start generating associated cash flows."
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 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.
For more information, visit www.pembina.com.
Forward-Looking Statements & Information
This document contains certain forward-looking statements and
information (collectively, "forward-looking statements") within the
meaning of the "safe harbor" provisions of applicable securities
legislation 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", and similar expressions suggesting future events
or future performance.
In particular, this document contains forward-looking
statements, pertaining to, without limitation, the following:
expansions of and additions to Pembina's business and asset base;
timing and expected capacity of growth projects; growth and growth
potential; anticipated business integration and the benefits
thereof. These forward-looking statements and information are being
made by Pembina based on certain assumptions that Pembina has made
in respect thereof as at the date of this document including those
discussed below.
With respect to forward-looking statements contained in this
document, Pembina has made assumptions regarding, among other
things: that third parties will provide any required support;
that third parties will fulfill their obligations under current and
future agreements; that there are no unanticipated changes to the
regulatory or commercial environment; ongoing utilization and
future expansion, development, growth and performance of Pembina's
business and asset base; future demand for fractionation and
transportation services; future levels of oil and natural gas
development; and potential revenue and cash flow enhancement;
future cash flows.
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.
None of the forward-looking statements described above are
guarantees of future performance and are subject to a number of
known and unknown risks and uncertainties, including, but not
limited to: the failure of third parties to fulfill their
obligations under current or future agreements; the inability of
Pembina to secure any required third party support; 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;
regulatory environment and inability to obtain required regulatory
approvals; tax laws and treatment; fluctuations in operating
results; lower than anticipated results of operations and accretion
from Pembina's business initiatives; reduced amounts of cash
available for dividends to shareholders; the ability of Pembina to
raise sufficient capital (or to raise capital on favourable terms)
to complete future projects and satisfy future commitments.
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 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.
All financial figures are in Canadian dollars, unless
otherwise noted.
Pembina Pipeline® is a registered trademark of
Pembina Pipeline Corporation.
SOURCE Pembina Pipeline Corporation