CALGARY, March 28, 2018 /PRNewswire/ - Pembina
Pipeline Corporation ("Pembina" or "the Company") (TSX: PPL; NYSE:
PBA) announced today that Alliance Pipeline Ltd. ("Alliance"), of
which it owns a 50 percent interest, has commenced a binding open
season ("Open Season") for expansion capacity commitments.
Alliance today announced a
binding Open Season for expansion capacity commitments. The Open
Season is for an estimated 400 million cubic feet per day of
additional firm service, commencing at an anticipated in-service
date in the fourth quarter of 2021. The two-month Open Season
begins March 28, 2018 and closes
May 30, 2018.
Alliance receives natural gas
in British Columbia, Alberta and North
Dakota and carries it to the Chicago market, delivering approximately 1.6
billion cubic feet of natural gas per day. Pending regulatory
approval, Alliance will increase
capacity by approximately 25 percent through the addition of
compression and other facilities to its system.
The offer is available to both existing and prospective
shippers, for a minimum bid term of 15 years. Two Open Seasons are
being held concurrently, one for Canadian receipt and delivery
services and one for United States
("U.S.") transportation service. Parties interested in acquiring
capacity from the Canadian receipt points must participate in both
open seasons to obtain delivery service to Chicago.
Subject to the results of the Open Season, this approximately
$2 billion project will be
backstopped by long term, take-or-pay contracts that will provide
customers with long term, firm receipt service with the certainty
of fixed fees.
"The proposed expansion of Alliance Pipeline will increase
access to premium markets and improve our service offering to
current and potential customers," said Jason Wiun, Pembina's Senior Vice President and Chief
Operating Officer, Pipelines. "While our extensive discussions
regarding the expansion have indicated strong shipper interest, a
successful Open Season process is a crucial step towards advancing
the project, and providing our customers with additional service
and access to the premium Chicago
market."
More information on the binding Open Season is available on
Alliance's website at
www.alliancepipeline.com.
About the Alliance Pipeline system:
The Alliance
Pipeline system consists of an approximately 3,848-kilometer
(2,391-mile) integrated Canadian and U.S. natural gas transmission
pipeline system, delivering rich natural gas from the Western
Canadian Sedimentary Basin and the Williston Basin to the Chicago market hub. The Alliance system delivers, on average, about
45.3 million standard cubic metres (or 1.6 billion standard cubic
feet) of natural gas per day. More information about the company is
available at www.alliancepipeline.com.
Alliance Pipeline Limited Partnership (Alliance Canada) owns the Canadian portion of
the Alliance Pipeline system. Alliance Pipeline L.P. (Alliance
U.S.A.) owns the U.S. portion of
the Alliance Pipeline system. Both Alliance Canada and Alliance U.S.A. are owned 50 percent each by affiliates
of Enbridge Income Fund (TSX:ENF) and Pembina Pipeline Corporation
(TSX:PPL).
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 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 news release 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 "continue", "anticipate", "schedule", "will", "should",
"expects", "estimate", "potential", "planned", "future" and similar
expressions suggesting future events or future performance.
In particular, this news release contains forward-looking
statements relating to the proposed capacity expansion of the
Alliance Pipeline including but not limited to: expectations, plans
or prospects for the Alliance Pipeline; estimated increased
capacity of the Alliance Pipeline; the feasibility, terms and
conditions of such expansion and the ability to achieve project
support; the anticipated benefits to Pembina's customers; and costs of 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: oil and gas industry exploration and
development activity levels and the geographic region of such
activity; the success of Pembina's
operations and growth projects and the integration of acquisitions;
prevailing commodity prices, margins, volumes and exchange rates;
the availability of capital to fund future capital requirements
relating to existing assets and projects; future operating costs;
geotechnical and integrity costs; 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 counterparties will comply
with contracts in a timely manner; that there are no unforeseen
events preventing the performance of contracts or the completion of
the relevant facilities; that there are no unforeseen material
costs relating to the facilities which are not recoverable from
customers; prevailing interest and tax rates; prevailing
regulatory, tax and environmental laws and regulations; maintenance
of operating margins; the amount of future liabilities relating to
lawsuits and 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 decisions; the
impact of competitive entities and pricing; labour and material
shortages; reliance on key relationships and agreements; the
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; the
failure to realize the anticipated benefits or synergies of
acquisitions due to the factors set out herein, integration issues
or otherwise, fluctuations in operating results; adverse general
economic and market conditions in Canada, North
America and worldwide, including changes, or prolonged
weaknesses, as applicable, in interest rates, foreign currency
exchange rates, commodity prices, supply/demand trends and overall
industry activity levels; ability to access various sources of debt
and equity capital; changes in credit ratings; counterparty credit
risk; technology and cyber security risks; and certain other risks
detailed from time to time in Pembina's public disclosure documents
available at www.sedar.com, www.sec.gov and through Pembina's website at
www.pembina.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 or information contained herein, except as required by
applicable laws. Readers are cautioned that management of
Pembina approved the financial
outlook contained herein as of the date of this news
release.
SOURCE Pembina Pipeline Corporation