CALGARY, Jan. 12 /CNW/ - Pembina Pipeline Corporation ("Pembina") through its wholly-owned subsidiary, Pembina Midstream Limited Partnership ("PMLP"), has acquired terminalling and storage facilities in the Edmonton, Alberta area (the "Acquired Assets") from Gibson Energy Partnership for an aggregate purchase price of approximately $57 million.
The Acquired Assets, strategically located near key markets in the Edmonton area, consist of pipeline connected terminalling and storage facilities capable of creating tailored products and services for specific customers. The Acquired Assets have in excess of 300,000 barrels of existing storage and sufficient bare land to develop and significantly expand this capacity as customer demand grows. The Acquired Assets will be used primarily to receive, aggregate and deliver product to and from Pembina's customers and currently has various upstream and downstream interconnections.
The Acquired Assets form an important part of Pembina's growth strategy in the Midstream & Marketing business, increasing PMLP's ability to provide new, customer-focused services, expanding its terminalling capabilities through greater connectivity of its infrastructure and allowing it to bring incremental operational and merchant storage to the market.
"This strategic purchase is another example of Pembina's ability to vertically integrate and leverage its existing assets to provide synergies across our business units," said Bob Michaleski, Pembina's President and Chief Executive Officer. "Our Conventional Pipelines, Gas Services, and Oil Sands & Heavy Oil business units will all benefit from this acquisition and the incremental services the Midstream & Marketing business unit can provide."
The Acquired Assets will form an integral part of the Pembina Nexus Terminal ("PNT"), which will connect key infrastructure in the Edmonton-Fort Saskatchewan-Namao area. Pembina envisions that PNT will act, among other things, as a key diluent distribution facility to serve the growing demand for diluents by customers in the oil sands and heavy oil sector. PNT is also expected to form a receipt and delivery terminal for the potential expansion of Pembina's Mitsue Pipeline, which will enable Pembina to expand diluent delivery to the Nipisi heavy oil area. Pembina is already developing plans to increase the interconnectivity of the terminal, aimed at providing value to both upstream and downstream customers.
The acquisition of the Acquired Assets was funded by Pembina's existing credit facilities and closed on January 7, 2011.
Pembina transports crude oil and natural gas liquids produced in Western Canada, owns and operates oil sands pipelines and has a growing presence in the midstream & marketing and gas services sectors. 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", "will", "envisions", "expects", "potential" and similar expressions.
In particular, this news release contains forward-looking statements and information relating to Pembina's growth projects. 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.