Pembina Pipeline Corporation Extends Capture Area of Conventional Pipelines
CALGARY, March 3 /CNW/ - Pembina Pipeline Corporation ("Pembina") (TSX: PPL) announced today that it is extending the reach of its conventional pipeline system to provide alternative liquids transportation solutions to producers in the greater Edson, Alberta area.
The reactivation and recertification of an existing 6-inch line from Windfall Junction on Pembina's Peace Pipeline system to Edson will provide transportation options for producers exploring for liquids rich gas opportunities in Deep Basin Cretaceous plays, including Cardium oil opportunities south of Edson. Pembina is currently completing various re-commissioning activities such as in line inspection, recertification and hydrostatic testing. Pembina expects the re-commissioned pipeline will be in-service in mid-2011 at a cost of approximately $15 million and is underpinned by a long-term transportation agreement with an area producer for approximately 5,000 barrels per day ("bpd"). The reactivated pipeline will have an initial capacity of approximately 12,500 bpd and ultimate capacity of approximately 17,500 bpd. With high levels of industry activity in the greater Edson area, additional capacity and tie-in opportunities are expected to be available on the new line segment.
"By leveraging existing infrastructure in this area, Pembina is able to provide reliable and cost effective liquids transportation options for producers to deliver their products to market" said Bob Michaleski, Pembina's President and Chief Executive Officer.
Pembina transports crude oil and natural gas liquids produced in Western Canada, owns and operates oil sands pipelines and has a growing presence in midstream and gas services. Pembina's common shares (PPL) and convertible debentures (PPL.DB.C) are traded on the TSX.
Forward-Looking Information and Statements
This news release contains certain forward-looking information and 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 this news release, such forward-looking information and statements can be identified by terminology such as "expects", "will" and similar expressions.
In particular, this news release contains forward-looking information and statements relating to Pembina's growth projects and industry exploration and development activity levels. These forward-looking statements are based on certain assumptions including: that favourable growth parameters continue to exist in respect of current and future growth projects (including the ability to finance such projects on favourable terms); and that Pembina's businesses will continue to achieve sustainable financial results.
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: non-performance of agreements in accordance with their terms; 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; the ability of Pembina to raise sufficient capital to complete future projects and satisfy future commitments; construction delays; labour and material shortages; and certain other risks detailed from time to time in Pembina's public disclosure documents including, among other things, those detailed under the heading "Risk Factors" in Pembina's management's discussion and analysis for the year ended December 31, 2009, which can be found at www.sedar.com.
Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted, forecasted or projected. Such forward-looking statements are expressly qualified by the above statements. 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.
All dollar values are in Canadian dollars.
For further information: Glenys Hermanutz, Vice President, Corporate Affairs, Pembina Pipeline Corporation, (403) 231-7500, 1-888-428-3222, e-mail: firstname.lastname@example.org