Pembina Pipeline Corporation Announces Plans to Expand its Truck Terminal Network
CALGARY, Sept. 13, 2011 /CNW/ - Pembina Pipeline Corporation ("Pembina" or the "Company") announced today plans to invest approximately $50 million over the next 18 to 24 months to expand its truck terminal network at key locations throughout western Alberta and British Columbia.
Pembina plans to expand services at a number of existing truck terminals and also construct new full service terminals that focus on emulsion treating (separating oil from impurities to meet shipping quality requirements), produced water handling and water disposal. In addition to earning fees for these additional services, the Company's truck terminals will secure volumes for its pipeline systems, which will generate additional pipeline toll revenue.
"We have been involved in the midstream sector since 2005 and we are excited to expand our full service terminal footprint," said Bob Michaleski, Pembina's President and CEO. "The locations we've selected for additional truck terminals will enable us to provide the services our customers need in close proximity to their operations. At the same time, we're adding long-life, integrated assets to our midstream portfolio."
Pembina's current truck terminal assets include twelve clean oil facilities and an interest in the LaGlace Full Service Terminal and the Rimbey Truck Terminal - all of which are connected to Pembina's conventional pipeline systems. In addition, Pembina is nearing completion of its Baptiste Truck Terminal, which will serve Cardium producers in the Willesden Green area.
Pembina entered the full service truck terminal business in 2008 through a joint venture with an industry partner to construct the LaGlace Full Service Terminal. Increasing the Company's truck terminal network is part of a capture strategy to secure volumes for Pembina's conventional pipeline network and is another example of the Company's vertical integration strategy.
Pembina has an inventory of 15 opportunities across its pipeline systems to service constrained and developing areas. Pembina's initial capital expenditures will be directed towards truck terminals to service Cardium, Montney, Deep Basin and Peace River oil producers as well as at its Edmonton Nexus Terminal, subject to regulatory approval.
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 natural gas services sectors. Pembina's common shares and convertible debentures are traded on the TSX under the symbols PPL and PPL.DB.C respectively.
Forward-Looking Information and Statements
This news release contains certain forward-looking information and statements ("forward-looking statements") that are based on the 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 statements can be identified by terminology such as "plans", "will", and similar expressions.
In particular, this news release contains forward-looking information and statements relating to Pembina's growth projects, including: (i) the estimated cost to expand Pembina's truck terminal network; (ii) the scope of expansion of Pembina's truck terminal network; (iii) the expected increase in revenue and volumes on Pembina's conventional pipeline systems; (iv) the expected completion of the Baptiste Truck Terminal; and (v) industry development activity levels. These forward-looking statements are being made by Pembina 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; 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 revised 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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