CALGARY, Alberta, Nov. 27, 2014 /PRNewswire/ -- Pembina Pipeline
Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA)
announced today that it plans to construct a new facility and
expand its gas processing capacity at Musreau by 100 million cubic
feet per day ("MMcf/d") ("Musreau III") for an estimated cost of
$105 million.
"The areas surrounding Pembina's existing gas processing
facilities at Musreau, part of our Cutbank Complex, continue to be
a focus for our customers producing liquids-rich natural gas," said
Stuart Taylor, Pembina's Senior Vice
President, NGL and Natural Gas Facilities. "Musreau III allows for
additional processing and Pembina's customers benefit from our
ability to provide an integrated service offering including
pipeline transportation and fractionation services. Musreau III
will leverage the engineering and design work for our Musreau I and
Musreau II facilities and will use the same pipeline lateral to
access our Peace Pipeline System. With the successful execution of
our Musreau II facility nearing completion ahead of schedule and on
budget, I am confident that Musreau III will bring another win for
us as we will use our proven 'assembly line' approach to facility
design and construction."
Musreau III, which is underpinned by long-term agreements with
several area producers, involves the construction of a 100 MMcf/d
shallow cut facility which will be built adjacent to Pembina's
existing Musreau facility and its nearly complete Musreau II
facility. Pembina expects Musreau III to have liquids extraction
capacity of approximately 3,000 barrels per day ("bpd"), subject to
gas compositions. Similar to the Company's other gas processing
facilities, the agreements for Musreau III are take-or-pay in
nature and provide flow through of operating expenses. Subject to
regulatory and environmental approval, Pembina anticipates bringing
Musreau III on-stream in mid-2016.
"In total, once Musreau III is complete, the Cutbank Complex
will have approximately 570 MMcf/d of shallow cut processing
capacity, 205 MMcf/d of deep cut processing capacity and will
produce roughly 25,000 bpd of liquids for transportation on our
Conventional Pipelines," said Mr. Taylor. "We are happy to be
adding another long-term fee-for-service asset to our portfolio
that will feed into our integrated businesses. Projects like this
benefit both our customers and shareholders and allow us to
continue producing sustainable returns."
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 60 years. Pembina owns and
operates pipelines that transport various hydrocarbon liquids
including conventional and synthetic crude oil, heavy oil and oil
sands products, condensate (diluent) and natural gas liquids
produced 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. With facilities strategically located in
western Canada and in natural gas
liquids markets in eastern Canada
and the U.S., Pembina also offers a full spectrum of midstream and
marketing services that spans across its operations. Pembina's
integrated assets and commercial operations enable it to offer
services needed by the energy sector along the hydrocarbon value
chain.
Pembina is a trusted member of the communities in which it
operates and is committed to generating value for its investors by
running its businesses in a safe, environmentally responsible
manner that is respectful of community stakeholders.
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", "expand", "would", "plans", "anticipates" and
similar expressions suggesting future events or future
performance.
In particular, this document contains forward-looking
statements, pertaining to, without limitation, the following: the
planned capacity of the proposed Musreau III facility; the
anticipated capital cost of Musreau III; the expected in-service
date of Musreau III; the ongoing utilization and expansions of and
additions to Pembina's business and asset base, 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 in which the Musreau Facility
is operated; ongoing utilization and future expansion, development,
growth and performance of Pembina's business and asset base; future
demand for fractionation and pipeline transportation services;
future levels of oil and natural gas development; potential revenue
and cash flow enhancement; and 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.
Investor Inquiries: Scott
Burrows, Vice President, Capital Markets, +1 (403) 231-3156,
1-855-880-7404, e-mail: investor-relations@pembina.com; Media
Inquiries: Laura Lunt, Senior
Manager, Regulatory, Environment & External Relations, +1 (403)
231-7500