News Release

Pembina Pipeline Corporation to Expand its NGL Pipeline Transportation Capacity

CALGARY, Nov. 9, 2011 /CNW/ - Pembina Pipeline Corporation ("Pembina") (TSX: PPL) today announced plans to expand its natural gas liquids ("NGL") throughput capacity on its Peace and Northern Pipelines (together the "Northern NGL System") by 55,000 barrels per day ("bpd") (the "NGL Expansion") to accommodate increased customer demand resulting from strong drilling results and increased field liquids extraction by area producers.

The NGL Expansion will require Pembina to install five new pump stations and upgrade five existing pump stations, which Pembina expects to cost approximately $100 million and is subject to reaching long-term commercial arrangements with its customers and receipt of regulatory approval. Pembina expects 20,000 bpd of the NGL Expansion can be brought into service by the end of 2012 and the remaining 35,000 bpd by the end of 2013.

Pembina's Northern NGL System is strategically located across some of the most prolific liquids rich natural gas production areas in the Western Canadian Sedimentary Basin and serves producers in the Deep Basin, Montney, Cardium and emerging Duvernay Shale plays. Currently, the Northern NGL System's capacity is 115,000 bpd with average daily volumes of approximately 88,000 bpd. Using its existing infrastructure, Pembina expects to end 2011 with throughput on the Northern NGL System of approximately 100,000 bpd due to higher volumes resulting from the commissioning of Pembina's Edson pipeline expansion and the Musreau Deep Cut Facility. Once completed the proposed NGL Expansion will increase capacity on the Northern NGL System by 48 percent to 170,000 bpd.

Pembina has existing long-term contracts in place for a portion of the capacity on its Northern NGL System. During the third quarter of 2011, Pembina began consulting with its customers and has since entered into several new long-term firm service incentive arrangements for additional capacity on the system. Combined, the existing and new contracts have secured 55 percent of the 170,000 bpd capacity. Pembina continues to consult with its customers in order to increase the volumes under long-term, firm service incentive contracts to underpin the NGL Expansion

"Pembina's growth strategy is designed to take advantage of the increased activity by producers in key plays in the Western Canadian Sedimentary Basin and enhance the services we provide customers while adding value to our shareholders," said Mick Dilger, Pembina's Chief Operating Officer. "Together with our recent announcements to increase our NGL processing capacity through our Gas Services business, today's announcement is really about meeting the requirements of shippers with a truly integrated approach throughout the value chain."

Pembina's plans for the NGL Expansion can be completed very cost-effectively by upgrading and modifying existing infrastructure where possible and will reduce environmental and community impact by using existing right-of-ways.

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", "proposes" and similar expressions.

In particular, this news release contains forward-looking information and statements relating to: (i) the expected in-service date of the NGL Expansion; (ii) the designed capacity of the NGL Expansion; (iii) the estimated cost to construct the NGL 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 NGL Expansion will be at the end of 2012 and the end of 2013; that the designed capacity of the NGL Expansion will be 170,000 bpd; 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); that Pembina is able to reach commercial arrangements with its customers at a satisfying level; 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.