CALGARY, May 31, 2016 /PRNewswire/ – Pembina Pipeline Corporation (“Pembina” or the “Company”) (TSX: PPL; NYSE: PBA) announced today that it has entered into agreements with a multinational, investment grade customer to construct associated infrastructure relating to the Company’s previously announced 100 million cubic feet per day (“MMcf/d”) shallow cut gas plant, Duvernay I (“Duvernay I”). The supporting infrastructure includes condensate, gas and water field handling (the “Field Hub”), a gas gathering trunk line and a fuel line for a total expected capital cost of approximately $130 million.
The Field Hub is committed under a long-term, fixed-return agreement and will connect to the customer’s development well pads providing separation, stabilization and other supporting services. In addition, Pembina will construct a 35 kilometer gas gathering trunk line, which creates a gas gathering backbone between the Tony Creek, Alberta and Fox Creek, Alberta areas that will connect the Field Hub to Pembina’s Duvernay I facility. The Field Hub will also connect into Pembina’s Peace Pipeline system. To align with the in service date of Duvernay I, Pembina anticipates bringing the Field Hub and the associated infrastructure into service in the second half of 2017, subject to regulatory and environmental approval.
Additionally, Pembina executed a long-term, fee-for-service gas processing agreement at the Duvernay I facility. With this agreement, Duvernay I is now fully contracted and Pembina has begun preliminary engineering on a ‘twin’ Duvernay II facility.
“Our strategic position in the Duvernay continues to provide opportunities for us to expand our reach and service offering for our customers,” said Mr. Jaret Sprott, Pembina’s Vice President, Gas Services. “We are also pleased to be strengthening our relationships with large, credit worthy counterparties.”
Calgary-based Pembina Pipeline Corporation is a leading transportation and midstream service provider that has been serving North America’s energy industry for over 60 years. Pembina owns and operates an integrated system of pipelines that transport various products derived from natural gas and hydrocarbon liquids produced in western Canada and North Dakota. The Company also owns and operates gas gathering and processing facilities and an oil and natural gas liquids infrastructure and logistics business. Pembina’s integrated assets and commercial operations along the entire hydrocarbon value chain allow it to offer a full spectrum of midstream and marketing services to the energy sector. Pembina is committed to working with its community and aboriginal neighbours, while providing value for investors in a safe, environmentally responsible manner. This balanced approach to operating ensures the trust Pembina builds among all of its stakeholders is sustainable over the long-term. Pembina’s common shares trade on the Toronto and New York stock exchanges under PPL and PBA, respectively. For more information, visit www.pembina.com.