Pembina Announces $115 Million Simonette Pipeline Expansion Project

     Pembina Announces $115 Million Simonette Pipeline Expansion Project

PR Newswire

CALGARY, Sept. 16, 2013

CALGARY, Sept. 16, 2013 /PRNewswire/ - Pembina Pipeline Corporation ("Pembina"
or the "Company") (TSX: PPL; NYSE: PBA) announced today that it plans to
proceed with a $115 million expansion of its Peace Pipeline System  between
Simonette and Fox Creek, Alberta (the "Simonette Pipeline Expansion"). In
response to requests from area producers for firm service, the Simonette
Pipeline Expansion is expected to initially deliver approximately 40,000
barrels per day of additional liquids to Pembina's Fox Creek Terminal. At Fox
Creek, this incremental production will access Pembina's previously announced
Phase I and II Peace Pipeline mainline expansions from Fox Creek to the
Edmonton area markets. In addition, once the project is complete, Pembina
expects to have sufficient capacity and operational flexibility within the
Simonette to Fox Creek corridor to transport substantially all future volumes
nominated through the Open Season process (Phase III Peace Pipeline mainline
potential expansion plans) announced March 7, 2013.

The Simonette Pipeline Expansion will require the installation of
approximately 60 kilometres of 16-inch pipeline along Pembina's existing
right-of-way, and will provide service to producers developing the regional
Montney and Duvernay formation resource plays. Once complete, Pembina will
have three pipelines in the corridor capable of segregating and shipping
various grades of crude oil, condensate and natural gas liquids. Subject to
receiving required environmental and regulatory approvals, Pembina expects to
commence construction on the pipeline project this winter, with an estimated
in-service date in the third quarter of 2014.

In conjunction with the Simonette Pipeline Expansion, Pembina is also
installing eight clean crude oil and condensate truck unloading risers at the
Fox Creek Terminal which it anticipates will be in service in the fourth
quarter of 2013. The addition of high capacity truck unloading facilities will
allow producers to access Edmonton area markets through previously announced
Phase I and II Peace Pipeline mainline expansions.

"The additional capacity provided by these expansions will help ensure our
customers have timely access to markets as they continue to pursue their
drilling and production plans," said Mick Dilger, Pembina's President and
Chief Operating Officer. "The Simonette Pipeline Expansion Project ties in
directly with our Open Season process by installing sufficient capacity for
all anticipated future production growth coming from that particular area.
With our existing asset footprint and rights-of-way, we are happy to have the
flexibility to phase-in solutions such as this to alleviate capacity
constraints while we solidify the remainder of our development plans. We
expect to have additional information to share with our shareholders,
stakeholders and customers regarding the Open Season in the coming weeks and
months."

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", "forecasts", "plans", "anticipates", "indicates", "potential",
"will", "estimate", "expand", "would", "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 of the Simonette Pipeline
Expansion Project, Fox Creek Terminal truck risers and the Open Season; the
anticipated capital cost of the Simonette Expansion; the expected in-service
date of the Simonette Pipeline Expansion and the Fox Creek Terminal truck
risers; the ongoing utilization and expansions of and additions to Pembina's
business and asset base, growth and growth potential; and expectations
regarding supply and demand factors and pricing for oil, natural gas liquids
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 fractionation and storage services; future
levels of oil and natural gas development; potential revenue and cash flow
enhancement; and future cash flows.

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, Capital Markets
(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
 
Press spacebar to pause and continue. Press esc to stop.