CALGARY, Alberta, May 15, 2017 /PRNewswire/ -- Pembina
Pipeline Corporation ("Pembina" or "the Company") (TSX: PPL; NYSE:
PBA) is pleased to announce that it, along with Petrochemical
Industries Company K.S.C. ("PIC") of Kuwait, has reached key milestones for the
previously announced proposed integrated propylene and
polypropylene production facility in Sturgeon County, Alberta ("PDH/PP Facility" or the "Project").
Pembina and PIC have executed 50/50 joint venture agreements (the
"Joint Venture") that includes binding commercial terms in support
of the Project and have formed a new entity, Canada Kuwait
Petrochemical Corporation ("CKPC"). Additionally, Pembina is
pleased to announce that CKPC will proceed with activities for
front end engineering design ("FEED") for the Project.
"The encouraging results of the recently completed feasibility
study, the previously announced award of $300 million in royalty credits from the Alberta
Government's Petrochemicals Diversification Program, and a Joint
Venture with our world class partner, PIC, gives Pembina the
confidence to further advance the Project," said Stuart Taylor, Pembina's Senior Vice President,
NGL & Natural Gas Facilities. "This Project represents a
material extension of our natural gas liquids value chain strategy
and creates a significant incremental local market for western
Canadian hydrocarbons."
"PIC is looking forward to progressing the development of this
Project into FEED stage. Establishing a Joint Venture with Pembina
and investing in a large-scale value-addition project will
contribute to PIC's continued pursuit of sustainable and
globally-diversified petrochemical growth," said Mrs. Hosnia
Hashim, PIC's Deputy Chief Executive Officer, Olefins and
Aromatics. "This Joint Venture between PIC and Pembina will be
positioned to flourish in a competitive market with access to
secure and advantaged feedstock. PIC welcomes the support of the
local governments in this initiative and is looking forward to
potentially expanding its asset base within Alberta."
"It's encouraging to see another milestone along the way on a
project that will help diversify the type of energy products we
produce here in Alberta," said
Margaret McCuaig-Boyd, Alberta's Minister of Energy. "Our government
is committed to creating good jobs in the industry through
investments in world-class petrochemical facilities like this
one."
The decision to proceed with FEED, execution of definitive Joint
Venture agreements and the establishment of CKPC represent major
milestones for Pembina and PIC. Deliverables of FEED include a
refined capital cost estimate, a project execution plan, regulatory
applications, an updated construction schedule and projected
in-service date, among numerous other items. The anticipated cost
of FEED is expected to represent approximately 2.0 percent to 2.5
percent of the Project's current cost estimate. FEED activities are
expected to be completed by late 2018, followed by a final
investment decision ("FID") from each partner.
The proposed PDH/PP Facility is expected to consume 22,000
barrels per day of Alberta-produced propane, which is expected to
be sourced from Pembina's Redwater Fractionation Complex ("RFS"),
as well as other regional facilities. The Project is anticipated to
produce in excess of 1.2 billion pounds per year of polypropylene
which would be transported to North American and global markets.
Subject to required approvals and a positive FID, the Joint Venture
expects to construct the PDH/PP Facility in close proximity to RFS
in Sturgeon County, part of Alberta's Industrial Heartland. The
preliminary capital cost estimate of the Project is $3.8 - $4.2 billion (gross).
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 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.
About PIC
Petrochemical Industries Company K.S.C ("PIC") founded in 1963
is a subsidiary of Kuwait Petroleum Corporation ("KPC"). Today, PIC
is a regional petrochemical industry leader. In addition to
manufacturing and marketing fertilizers, olefins and aromatics in
Kuwait, PIC participates in
multiple joint ventures that also produce and market petrochemical
products both locally and internationally. PIC has been operating
in Alberta since 2004 through
various investments including those in the petrochemical
industry.
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",
"could", "plans", "anticipates", "schedule", "potential" and
similar expressions suggesting future events or future
performance.
In particular, this document contains forward-looking
statements, pertaining to, without limitation, the following: the
anticipated timing of the feasibility study, the final investment
decision and the potential in-service date of the project, the
expected economic benefits and anticipated production of
polypropylene, the expected capacity and supply from the facility,
and markets for polypropylene, expected capital expenditures for
the Project, the method of transportation of polypropylene, demand
for propane and the benefits therefrom, Pembina's corporate
strategy; planning, capital expenditure estimates, expected
business partners, growth opportunities and 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, that favourable
growth parameters continue to exist in respect of current and
future growth projects, 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 and new opportunities; 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 corporate, 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 results of the feasibility study, the regulatory
environment and the ability to obtain required regulatory,
corporate, 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.
For further information: Investor Inquires: Hayley Mckenzie / Chelsy
Hoy, (403) 231-3156, 1-855-880-7404, e-mail:
investor-relations@pembina.com, www.pembina.com; Media
Inquiries: Victoria Person, (403) 231-3148, e-mail:
media@pembina.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/pembina-pipeline-corporation-and-petrochemical-industries-co-of-kuwait-establish-joint-venture-and-proceed-with-front-end-engineering-design-for-proposed-12-billion-pound-per-year-integrated-polypropylene-facility-300457146.html
SOURCE Pembina Pipeline Corporation