Pembina Pipeline Corporation to Progress Engineering and Begin Stakeholder Consultation on the Cornerstone Oil Sands Pipeline

  Pembina Pipeline Corporation to Progress Engineering and Begin Stakeholder
          Consultation on the Cornerstone Oil Sands Pipeline Project

PR Newswire

CALGARY, June 27, 2013

CALGARY, June 27, 2013 /PRNewswire/ - Pembina Pipeline Corporation ("Pembina"
or the "Company") (TSX: PPL; NYSE: PBA) announced today that it has entered
into an Engineering Support Agreement ("ESA") for diluent and blended bitumen
transportation services associated with enhanced oil recovery developments in
northeast Alberta owned by KKD Oil Sands Partnership ("KOSP"). KOSP is a
partnership between Statoil Canada Ltd. ("Statoil"), as managing partner, and
PTTEP Canada Ltd.

Concurrent with the work under the ESA, Pembina and Statoil will proceed with
negotiations to conclude long-term agreements for the construction of and
transportation service on a new greenfield pipeline system and associated
infrastructure (the "Cornerstone  Pipeline"). The Cornerstone Pipeline would
transport diluent and blended bitumen between KOSP's upstream developments and
the Edmonton area, including diluent connectivity at Pembina's Nexus Terminal
("PNT"). PNT interconnects Pembina's various terminalling infrastructure
located in the Edmonton, Redwater and Fort Saskatchewan areas. It provides
unparalleled access to the diverse crude oil grades produced in western
Canada. In addition, it is connected to condensate grades transported on
third-party and Pembina pipeline systems, including imported pipeline
supplies. The access and connectivity of PNT provides the broadest array of
diluent and diluent services available to Pembina's oil sands customers.

"This marks an important step forward in Pembina's oil sands and heavy oil
transportation business," said Bob Michaleski, Pembina's Chief Executive
Officer. "We continue to increase our access to diluent sources, both in the
Edmonton, Alberta area via our Midstream business and through expansions of
our Gas Services assets and Conventional Pipeline systems. This, combined with
our ongoing major pipeline system construction experience, puts us in a strong
position to support KOSP's oil sands development. The ESA allows us to lay the
groundwork for a substantial infrastructure expansion, which, should it
proceed, will provide Pembina with an exciting new oil sands platform that
will generate long-term shareholder value."

Under the ESA, Pembina and KOSP have jointly agreed to spend up to
approximately $35 million to conduct preliminary engineering work and begin
associated stakeholder consultation in support of KOSP's transportation needs.
At the conclusion of the work contemplated under the ESA, Pembina expects to
be in a position to file the necessary applications to proceed with
constructing the Cornerstone Pipeline. Subject to reaching commercial
agreements, as well as obtaining regulatory and environmental approvals
thereafter, Pembina expects the Cornerstone Pipeline could be in-service in
mid-2017.

"Our preliminary capital cost estimate to undertake construction of a 320
kilometre 12" diluent and 24" blended bitumen pipeline system is approximately
$850 million," said Michael Hantzsch, Vice President, Oil Sands & Heavy Oil.
"This size of pipe would allow us to phase-in expansions down the road with
incremental capital. We also may consider up-sizing the pipelines to 20" and
30", respectively, should the work conducted under the ESA indicate there are
sufficient volumes."

The Cornerstone Pipeline will be connected to KOSP's Cheecham Terminal and
Pembina Midstream Limited Partnership ("PMLP"), a subsidiary of the Company,
is expected to be a 50-percent shipper on the diluent pipeline alongside KOSP.
The shippers on the pipeline system will have exclusive use of the terminal,
enabling Pembina to offer additional value-added third-party services,
including much needed new sources of condensate and synthetic crude oil
diluent for use by area producers, as well as a number of options for blended
product. PMLP will be working with regional customers to develop and contract
for terminalling services, which will include diluent supply and blended
bitumen transportation out of the area.

About Pembina

Calgary-based Pembina Pipeline Corporation is a leading transportation and
midstream service provider that has been serving North America's energy
industry for nearly 60 years. Pembina owns and operates: pipelines that
transport conventional and synthetic crude oil and natural gas liquids
produced in western Canada; oil sands and heavy oil and diluent pipelines; gas
gathering and processing facilities; and, an oil and natural gas liquids
infrastructure and logistics business. With facilities strategically located
in western Canada and in natural gas liquids markets in eastern Canada and the
U.S., Pembina also offers a full spectrum of midstream and marketing services
that span across its operations. Pembina's integrated assets and commercial
operations enable it to offer services needed by the energy sector along the
hydrocarbon value chain.

Pembina is a trusted member of the communities in which it operates and is
committed to generating value for its investors by running its businesses in a
safe, environmentally responsible manner that is respectful of community
stakeholders.

Forward-Looking Statements & Information

This document contains certain forward-looking statements and information
(collectively, "forward-looking statements") within the meaning of the "safe
harbor" provisions of applicable securities legislation that are based on
Pembina's current expectations, estimates, projections and assumptions in
light of its experience and its perception of historical trends. In some
cases, forward-looking statements can be identified by terminology such as
"expects", "will", "estimate", "expand", "would", "could", "possible" and
similar expressions suggesting future events or future performance.

In particular, this document contains forward-looking statements, including
certain financial outlook, pertaining to, without limitation, the following:
Pembina's business objectives; the planned capacity and routing of the
proposed Cornerstone Pipeline; the expected cost of the preliminary
engineering work and stakeholder consultation; the anticipated capital cost of
the Cornerstone Pipeline; the expected in-service date of the Cornerstone
Pipeline; the ability of Pembina to offer and contract for terminalling
services at KOSP's Cheecham Terminal; the ongoing utilization and expansions
of and additions to Pembina's business and asset base, growth and growth
potential; expectations regarding future demand for transportation services;
and expectations regarding supply and demand factors and pricing for oil and
natural gas. These forward-looking statements and information are being made
by Pembina based on certain assumptions that Pembina has made in respect
thereof as at the date of this document including those discussed below.

With respect to forward-looking statements contained in this document, Pembina
has made assumptions regarding, among other things: ongoing utilization and
future expansion, development, growth and performance of Pembina's business
and asset base; future demand for transportation services; future levels of
oil and natural gas development; potential revenue and cash flow enhancement;
future cash flows; and the ability of the parties to agree on binding
commercial arrangements in respect of the Cornerstone Pipeline and
terminalling arrangements at KOSP's Cheecham Terminal.

Although Pembina believes the expectations and material factors and
assumptions reflected in these forward-looking statements are reasonable as of
the date hereof, there can be no assurance that these expectations, factors
and assumptions will prove to be correct. Readers are cautioned that events or
circumstances could cause results to differ materially from those predicted,
forecasted or projected. By their nature, forward-looking statements involve
numerous assumptions, known and unknown risks and uncertainties that
contribute to the possibility that the predictions, forecasts, projections and
other forward-looking statements will not occur, which may cause actual
performance and financial results in future periods to differ materially from
any projections of future performance or results expressed or implied by such
forward-looking statements and information.

None of the forward-looking statements described above are guarantees of
future performance and are subject to a number of known and unknown risks and
uncertainties, including, but not limited to: 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; lower than anticipated results of operations and accretion from
Pembina's business initiatives; reduced amounts of cash available for
dividends to shareholders; the ability of Pembina to raise sufficient capital
(or to raise capital on favourable terms) to complete future projects and
satisfy future commitments.

The forward-looking statements contained in this document speak only as of the
date of this document. 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. The forward-looking statements
contained in this document are expressly qualified by this cautionary
statement.

All financial figures are in Canadian dollars, unless otherwise noted.

Pembina PipelineĀ® is a registered trademark of Pembina Pipeline Corporation.

SOURCE Pembina Pipeline Corporation

Contact:

Investor Inquiries:
Scott Burrows
Vice President, Corporate Development & Investor Relations
(403) 231-3156
1-855-880-7404
e-mail:investor-relations@pembina.com

or

Media Inquiries:
Shawn Davis
Manager, Communications & Public Affairs
(403) 691-7654
e-mail:sdavis@pembina.com
 
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