Pembina Proceeds With Cheecham Lateral Pipeline Construction
CALGARY, Jan. 23, 2006 (Canada NewsWire via COMTEX News Network) -- Pembina Pipeline Corporation ("Pembina"), a wholly-owned subsidiary of Pembina Pipeline Income Fund (TSX: PIF.UN) announced that it has executed definitive agreements with ConocoPhillips Surmont Partnership, Total E&P Canada Ltd., Nexen Inc. and OPTI Long Lake L.P. (collectively referred to as the "Shippers") for the construction of the Cheecham Lateral. Pembina has entered into a transportation agreement with the Shippers for up to 136,000 barrels per day with a term ending October 31, 2031.
Construction of the $42 million Cheecham Lateral is currently underway and the line is expected to be operational by November 2006. The 56-kilometre pipeline is designed to transport synthetic crude oil ("SCO") from a newly constructed outlet on Pembina's Alberta Oil Sands Pipeline ("AOSPL") for delivery to a new terminalling facility located near Cheecham, Alberta.
Pembina anticipates that the cash flow generated under the twenty-five year agreement will provide approximately two percent annual accretion to Pembina's 2005 level of distributed cash flow. Pembina will earn a fixed return on invested capital over the contract term with full flow-through of operating expense. This project typifies the attractive ancillary opportunities available to Pembina as a result of its strategic investment in oilsands infrastructure.
Pembina Pipeline Income Fund (TSX: PIF.UN, PIF.DB, PIF.DB.A, PIF.DB.B) is among the predominant issuers in the Canadian energy infrastructure trust sector. Pembina's extensive network of conventional liquids feeder pipelines, oil sands transportation infrastructure and ethylene storage provide an integral service to the Western Canadian energy industry. This balanced portfolio of premium, long-life energy infrastructure assets supports the stability and sustainability of the Fund.
This document contains forward-looking statements that involve risks and uncertainties. Such information, although considered reasonable by Pembina at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated in the statements made. For this purpose, any statements that are contained herein that are not statements of historical fact may be forward-looking statements. Such risks and uncertainties include, but are not limited to risks associated with operations, loss of market, regulatory matters, environmental risks, industry competition, pipeline design and construction, and ability to access sufficient capital from internal and external sources.
SOURCE: Pembina Pipeline Income Fund
contact: Ms. Glenys Hermanutz, Manager, Corporate Development, Pembina Pipeline Corporation, (403) 231-7500,1-888-428-3222, e-mail: firstname.lastname@example.org; To request a free copy of this organization's annual report, please go to http://www.newswire.ca and click on Tools for Investors.