Midstream - Construction | Midstream - Transportation & Pipelines | Capital Markets | Capex Increase | Capital Expenditure - 2018

Pembina Ups 2018 Capex by $100MM; Updates Progress on Midstream Projects

Share Print Bookmark    |    Monday,September 24,2018

Pembina Pipeline has reported an increase to its 2018 Adjusted EBITDA guidance range to $2.75 to $2.85 billion. 

This is an increase of +4% at the midpoint (~$100 million) from its original plan.

Scott Burrows, Senior Vice President and Chief Financial Officer, said: “Pembina’s base business is performing well. We are seeing increased throughput on our conventional pipelines and fractionators, strong results from the assets acquired previously from Veresen and higher marketing revenues due to widening frac spreads."

Status of Infrastructure Projects

Peace Pipeline Expansions

The Montney infrastructure projects described above follow a series of growth projects within Pembina’s conventional pipeline system, including:

• The Phase III expansion, previously placed into service in July 2017, expanded capacity between Fox Creek and Namao, Alberta, the Company’s corridor that transports crude oil, condensate and natural gas liquids into the Edmonton area market

• The Phase IV expansion (“Phase IV”), currently underway, is adding capacity between Fox Creek and Namao, and its Phase V expansion (“Phase V”), also currently in construction, is debottlenecking upstream of Fox Creek. Both projects are nearing completion and are anticipated to be placed into service in late 2018

• The recently announced Phase VI expansion which includes upgrades at Gordondale, Alberta; a 16-inch pipeline from LaGlace to Wapiti, Alberta and associated pump station upgrades; and a 20-inch pipeline from Kakwa to Lator, Alberta. Phase VI is anticipated to be in service in the second half of 2019, subject to environmental and regulatory approval.