News Release

Pembina Pipeline Corporation Announces Plans to Construct New Enhanced Liquids Extraction Facility in Berland area of Alberta

CALGARY, Oct. 28, 2011 /CNW/ - Pembina Pipeline Corporation ("Pembina") (TSX: PPL) announced that it plans to construct, own, and operate a 200 million cubic feet per day ("mmcf/d") enhanced natural gas liquids ("NGL") extraction facility (the "Saturn Facility") and associated NGL and gas gathering pipelines in the Berland area of west central Alberta.

The Saturn Facility will be connected to Talisman Energy Inc.'s ("Talisman") Wild River and Bigstone gas plants through existing and newly constructed gas gathering lines. Once operational, Pembina expects the Saturn Facility will be able to extract up to 13,500 barrels per day ("bpd") of liquids. Pembina plans to construct an 83 kilometre, 8 inch NGL pipeline to transport the extracted NGL from the Saturn Facility to Pembina's Peace Pipeline, which delivers product into Edmonton, Alberta.

Pembina expects the Saturn Facility, associated NGL and gas gathering pipelines and storage to cost approximately $200 million and contribute annual EBITDA of approximately $30 million (including pipeline tolls). Subject to regulatory and environmental approval, Pembina expects the Saturn Facility and associated pipelines to be in-service in the fourth quarter of 2013. Pembina has entered into a long-term, firm service agreement with Talisman.

"The Saturn Facility is an exciting gas services and infrastructure project located in an area of strong liquids rich natural gas supply growth," said Bob Michaleski, Pembina's President and Chief Executive Officer. "This project is consistent with our strategy to optimize our existing asset base and, as is the goal with all of our projects, we will generate additional value through integration with our conventional pipelines and midstream and marketing services."

The Saturn Facility, combined with Pembina's Musreau Deep Cut Facility and its recently announced Resthaven Facility, are expected to bring Pembina's total enhanced NGL extraction capacity to approximately 600 mmcf/d, which could add up to approximately 40,000 bpd of NGL for transportation on Pembina's conventional pipelines by the end of 2013 and contribute $75 million to $90 million of EBITDA annually. To accommodate this expected volume increase, Pembina is currently assessing its mainline capacity to determine potential expansion requirements.

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", "plans", "could", "potential" and similar expressions.

In particular, this news release contains forward-looking information and statements relating to: (i) the expected in-service date of the Saturn Facility and the NGL pipeline; (ii) the designed capacity of the Saturn Facility; (iii) the estimated cost to construct the Saturn Facility and associated NGL pipeline; 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 Saturn Facility and NGL pipeline will be in the fourth quarter of 2013; that the designed capacity of the Saturn Facility will be 200 mmcf/d; that the Saturn Facility will be able to extract up to 13,500 bpd of NGL; 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

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.