CALGARY, Nov. 6, 2017 /CNW/ – Pembina Pipeline Corporation (“Pembina” or “the Company”) (TSX: PPL; NYSE: PBA) announced that it has executed further agreements (“Service Agreements”) whereby the Company will construct and operate the first tranche of infrastructure development under its previously announced 20-year infrastructure development and service agreement (the “Agreement”) with Chevron Canada Limited (“Chevron”). The Agreement includes over 230,000 acres of land dedication by Chevron in the liquids-rich Kaybob region of the Duvernay.
Under the Service Agreements, Pembina has been requested to develop and construct:
- raw product separation and water removal infrastructure;
- a condensate stabilization facility with approximately 30,000 barrels per day (“bpd”) of raw inlet condensate handling capacity;
- a 100 million cubic feet per day gas processing facility with approximately 5,000 bpd of propane-plus liquids capacity (“Duvernay II” a replica of Pembina’s Duvernay I facility); and
- a 10-inch condensate pipeline lateral that will connect to the Company’s Peace Pipeline system.
Duvernay II and the related infrastructure will be located at the Company’s existing Duvernay complex. Pembina expects the total capital cost to be approximately $290 million with an anticipated in service date of mid to late 2019, subject to regulatory and environmental approvals. As per the terms of the Service Agreements, the facilities will have a 20-year contractual life and would be back-stopped by a combination of fee-for-service and fixed-return arrangements. Additionally, the Service Agreements include natural gas liquids (“NGL”) and condensate transportation on Pembina’s Peace Pipeline system and NGL fractionation at the Company’s Redwater Fractionation complex.
“We are excited to further support the growth of the world-class Duvernay resource play and begin building out our first tranche of infrastructure requested under the previously announced Agreement with Chevron,” said Jaret Sprott, Pembina’s Vice President, Gas Services. “Pembina will leverage its template designs in order to safely and cost-effectively construct the facilities for our partner. We look forward to continuing to develop future Duvernay infrastructure needs over the long-term.”
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 natural gas and various products derived from natural gas and hydrocarbon liquids produced primarily in western Canada. 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 majority of the 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. Pembina’s preferred shares also trade on the Toronto stock exchange. For more information, visit www.pembina.com.