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
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.