Pembina Pipeline Corporation to Expand its Cutbank Complex
CALGARY, July 27, 2011 /CNW/ - Pembina Pipeline Corporation ("Pembina") (TSX: PPL) announced that it plans to expand its Cutbank Complex shallow cut gas processing capability by 50 million cubic feet per day ("mmcf/d") (the "Cutbank Expansion") due to high plant utilization and strong customer demand arising from positive drilling results.
On completion of the Cutbank Expansion, the Cutbank Complex will have total raw gas processing capacity of 410 mmcf/d (355 mmcf/d net to Pembina), an increase to Pembina of 16 percent. The Cutbank Expansion will occur at the Musreau gas plant, one of the three plants that make up the Cutbank Complex which is located in west central Alberta.
Pembina expects the Cutbank Expansion to cost approximately $26 million and, subject to regulatory and environmental approval, is expected to be in-service by mid-2012. Pembina has entered into contracts with a minimum term of five years with area producers for the entire expansion capacity on a fee for service basis.
"Producers are benefitting from new technologies that are driving production costs down and recovery rates up," said Stu Taylor, Pembina's Vice President, Gas Services. "This is increasing the need for gas handling, processing and transportation capacity. The proximity of our infrastructure to this very active producing region, together with our integrated service offering, positions Pembina to efficiently and competitively meet the needs of new and existing customers."
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 "plans", "expects", "will" and similar expressions.
In particular, this news release contains forward-looking information and statements relating to: (i) the expected in-service date of the Cutbank Expansion; (ii) the designed capacity of the Cutbank Expansion; (iii) the estimated cost to complete the Cutbank Expansion; and (iv) industry exploration and development activity levels. These forward-looking statements are based on certain assumptions including: that the in-service date of the Cutbank Expansion will be mid-2012; 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, 2010, 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.
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