Category Archives: Infrastructure

Kinder Morgan Buys Copano Pipeline for $3.22 Billion

Kinder Morgan Energy Partners will buy natural gas pipeline operator Copano Energy for $3.22 billion to tap into growing demand for infrastructure to transport vast supplies from the shale fields of Texas and Oklahoma.

Private equity firm TPG Capital, Copano’s top shareholder with a stake of more than 14 percent, will get a 41 percent premium to its $300 million investment made in 2010, if the deal goes through.

The deal is the latest in a flurry of multi-billion-dollar takeovers in the U.S. pipeline industry over the past two years as companies rush to cash in on a shortage of pipelines to move gas and gas liquids such as ethane and propane.

The oversupply of gas and gas liquids, largely due to the advent of new drilling methods such as hydraulic fracturing, has also hurt prices.

Many companies have announced plans to build new pipelines, but stricter regulations and environmental concerns have delayed the completion of several projects.

“Copano is already executing on a substantial backlog of expansion projects for which it has secured customer commitments and is exploring a significant amount of projects incremental to these,” said Kinder Morgan Chief Executive Richard Kinder.

“As a result of this acquisition, we will be able to pursue incremental development in the Eagle Ford Shale play in south Texas, gain entry into the Barnett Shale Combo in north Texas and the Mississippi Lime and Woodford Shales in Oklahoma,” CEO Kinder said.

Copano owns an interest in or operates about 6,900 miles of pipelines with capacity of 2.7 billion cubic feet per day (bcf/d) of gas and nine processing plants with more than 1 bcf/d capacity.

Kinder Morgan Energy owns an interest in or runs about 46,000 miles of pipelines that transport gas, gasoline, crude oil and other products, while its 180 terminals store petroleum products, chemicals and such other products.

SOURCE: http://www.cnbc.com/id/100419283

New England needs to expand gas pipelines

New England’s strong and increasing reliance on natural gas is well documented, with almost half of electricity currently generated by natural gas, up from just 15 percent in 2000, according to ISO New England.

That trend line will only increase in coming months and years with more and more homes and businesses converting to natural gas from heating oil. NStar has estimated that conversions here have tripled over the past three years and National Grid said conversions in Massachusetts and New Hampshire increased 34 percent.

All these are positive trends, particularly considering the abundance of cheap, available natural gas – and the possibility of far more due to the shale gas revolution happening throughout the nation.

However, the region will need to do more to increase our capacity to bring this abundant energy source to our businesses, institutions, and homes. That presents a problem which New England ought to see as an opportunity and move quickly to expand the available pipeline for natural gas into the region.

There is a clear need for additional gas pipeline capacity in New England, not only for electric generation on the relatively infrequent peak-gas-demand days and to fill the gaps from the growing use of intermittent renewable resources but, in general, for the rapidly growing end-use demand for gas.

We need new capacity to take advantage of the nation’s rising supplies of natural gas. Currently, the delivery cost of gas in New England is increasing rapidly and will likely keep rising, unabated, until pipeline capacity increases and more gas starts flowing into the area.

In New York, the key financing for an expansion was secured when marketers and transmission companies signed on to firm contracts after a period of significant increase in primary delivery costs. As a result, marketers are now concentrating in that key, new open market. After this new capacity, New York’s primary delivery cost is now approximately $2/therm lower than what Massachusetts end users are paying, as highlighted in a recent report by the US Energy Information Administration. That report also states that New England has the highest average spot prices for natural gas in the nation.

For New England, it doesn’t make sense to wait until the cost of gas increases to the point where it hurts commercial, industrial, and residential customers. For PowerOptions members, who use roughly 13 million dekatherms annually, matching New York’s primary delivery cost would translate into $26 million of savings.

While it is a bad idea to saddle the electricity market with the full cost, smart expansions of pipeline capacity make sense and regulators and the marketplace should consider a range of expansion solutions and include all potential sources of financing support.

The truth is, we can’t continue to provide the incentives we do to end users for the conversion from oil heating and steam to natural gas and then not expand our ability to bring more gas into the region. That math doesn’t add up.

Bottom-line, this is a very complex problem. There are no simple answers and a wide net of potential solutions must be cast. But simple answers like greater efficiency and leak prevention in our pipeline are simply not enough. Smart but bold action is needed – and soon.

SOURCE: http://www.commonwealthmagazine.org/Voices/Perspective/Online-Perspectives-2013/Winter/002-Arcate-New-England-needs-to-expand-gas-pipelines.aspx

AWE Aldermaston uranium enrichment facility closed due to ‘corrosion’ in vital structural steelwork

A secret plant that enriches uranium for Britain’s nuclear warheads on submarines has been shut due to “corrosion” in vital structural steelwork.

The AWE Aldermaston facility was closed following inspections by the Office for Nuclear Regulation (ONR), the nuclear division of the Health and Safety Executive.

Regulators feared one of the “older manufacturing facilities”  at the complex in Berkshire, which builds components for the Trident ballistic nuclear missiles on Royal Navy Vanguard-class submarines, did not conform to standards that demand buildings are capable of withstanding “extreme” weather and seismic events.

The ONR issued an “improvement” notice that prompted the closure by the AWE, the private consortium that operates the plant for the Ministry of Defence. AWE has been given until the end of this year to rectify the problems by the ONR.

The group’s role is to manufacture and sustain the Trident warheads and “maintain a capability” to produce a successor to the ageing nuclear deterrent in the future.

AWE said it covers the entire “life cycle” of warheads in Britain from initial concept and design through manufacturing and assembly to decommissioning and disposal.

The firm is run by a group of three private companies:  US firms Lockheed Martin and Jacobs Engineering Group, and the Serco in Britain.

Critics last night said the corrosion in an older building highlighted the Britain’s “ancient and rickety” nuclear infrastructure.

The ONR notice was served on November 8 after a scheduled inspection in August that found an “unexpected” area of steel corrosion in structural steelwork.

The issue emerged through information published in the ONR’s regional community newsletters which are published quarterly.  Inspections at the plant were said to have “discovered an unexpected area of corrosion on structural steelwork in one of their manufacturing facilities at Aldermaston”.

Subsequent inspections by AWE found “further degradation” and all non-essential operations were stopped at the facility.

It is understood the building in question is used for the manufacture of nuclear components and was found not be able to withstand “exceptional challenges”.

“ONR investigated, and found that AWE had not fully complied with Licence Condition 28(1) in so far as its arrangements to examine, maintain and inspect the structure were not adequate to prevent the degradation of the structure, and the resulting challenge to its nuclear safety functions,” said an ONR spokesman last night.

He added: “The Improvement Notice required AWE to ensure that the structure is repaired such that its safety function is fully restored.”

The Ministry of Defence last night said the ONR demands had not had any immediate impact on Britain’s nuclear submarine programmes. A spokesman said AWE was accessing the “extent of the problem” and considering “how best to rectify it”.

“The MoD’s ancient ancient and rickety infrastructure is clearly not up to the job of replacing the current Trident nuclear weapons programme,” said the Green MP Caroline Lucas. She added: “Rebuilding it to modern safety standards will add even more to the vast costs of the programme.”

An AWE spokeswoman said operations had been suspended as a “precaution”. She add that the improvement notice “formalises a lot of the inspection and review work” that had already been carried out by the company.

SOURCE: http://www.independent.co.uk/news/uk/home-news/awe-aldermaston-uranium-enrichment-facility-closed-due-to-corrosion-in-vital-structural-steelwork-8466191.html

Columbia Gas Transmission Receives FERC Approval Of Customer Settlement Facilitating Pipeline’s Long-Term Infrastructure Investment Plan

Plan addresses pipeline and system upgrades; improves public safety, customer reliability and service; provides economic benefits to communities; work expected to create 7,000 jobs

WASHINGTON and HOUSTON, Jan. 25, 2013 /PRNewswire/ – NiSource’s Columbia Gas Transmission (Columbia) today received approval from the Federal Energy Regulatory Commission (FERC) for a customer settlement that facilitates Columbia’s comprehensive pipeline infrastructure investment plan.

The settlement, filed on September 4, 2012 and widely supported by Columbia’s customers, covers the initial five years of Columbia’s investment plan and contains provisions for potential extension thereafter. Among other components, key elements of the settlement identify individual infrastructure projects and establish a mechanism for recovery of Columbia’s revenue requirement for infrastructure investment under the plan.

“FERC’s approval of our customer settlement is a milestone in our efforts to modernize Columbia’s interstate pipeline system in a balanced, thoughtful and transparent manner,” said Jimmy Staton, Columbia’s chief executive officer. “We acknowledge FERC for their timely review and approval, and appreciate the collaboration from our customers. We look forward to getting the job done. The work we do will help ensure safer, more reliable pipeline infrastructure for our customers and the communities across our footprint.”

Under the settlement, Columbia will invest approximately $300 million per year, in addition to a $100 million investment in ongoing maintenance, over the 2013 through 2017 period on system improvements, which include:

  • Replacing Aging Infrastructure – commencing the replacement of approximately 1,000 miles of existing interstate transmission pipelines, primarily bare steel (400 miles in the first five years);
  • Upgrading Natural Gas Compression Systems – replacing and modernizing more than 50 critical compressor units along the pipeline system that will enhance system efficiency and improve environmental performance;
  • Increasing Pipeline System Reliability – uprating pressures and looping systems where needed to ensure gas is reliably delivered to critical markets; and
  • Expanding In-Line Inspection Capabilities – facilitating Columbia’s ability to perform state-of-the-art maintenance and inspections without interrupting services

Infrastructure investment work will take place across Columbia’s footprint, including Kentucky, Maryland, Ohio, Pennsylvania, Virginia and West Virginia. More than 7,000 direct jobs are expected to be created as a result of the infrastructure investment program. That work will cover a broad range of activities, including facility engineering and design, permitting, project management and a variety of construction trades.

Working with FERC and other federal, state and local agencies, Columbia will continue to engage key stakeholders, landowners and customers throughout the planning and construction process. More information about the company’s investment projects can be found on www.ngts.com.

Columbia projects that its entire infrastructure investment plan could involve an investment of approximately $4 billion over an extended (10-15 year) period.

SOURCE: http://www.dailymarkets.com/stock/2013/01/25/columbia-gas-transmission-receives-ferc-approval-of-customer-settlement-facilitating-pipelines-long-term-infrastructure-investment-plan/

Nebraska governor approves Keystone XL route

Nebraska Gov. Dave Heineman has approved TransCanada Corp.’s revised route for the Keystone XL pipeline, clearing the way for a final decision from U.S. regulators on the project that would bring Canadian oil to the Texas coast.

The new route avoids Nebraska’s Sand Hills, an environmentally sensitive region overlaying the Ogallala aquifer, the state’s main source of groundwater. The pipeline will still cross the aquifer, though in a less sensitive area, according to a letter Heineman, a Republican, sent Tuesday to President Barack Obama and Secretary of State Hillary Clinton informing them of his decision.

“Keystone would have minimal environmental impacts in Nebraska,” Heineman said in the letter. “The concerns of Nebraskans have had a major influence on the pipeline route, the mitigation commitments and this evaluation.”

Heineman requested that Nebraska’s environmental review and route approval be added to the study underway by the State Department, which has authority over the project because it crosses an international border. TransCanada executives have said U.S. approval for the pipeline could come by the end of March. Victoria Nuland, a spokesman for the State Department, said the review won’t be ready by then.

“Keystone XL is the most studied cross-border pipeline ever proposed, and it remains in America’s national interests to approve a pipeline that will have a minimal impact on the environment,” Russ Girling, chief executive officer for the Calgary-based pipeline company, said Tuesday in an emailed statement.

Supporters of the 1,661-mile project have said it will provide thousands of jobs and help the United States avoid dependence on energy sources from politically unstable places. Critics have turned the pipeline proposal into an environmental debate over Canada’s oil sands and the heavy crude’s contributions to air and water pollution. Blocking pipeline transport of the oil to markets in the U.S. and overseas might jeopardize development of the resource.

TransCanada’s original permit request to build the $7.6 billion pipeline, planned to stretch from Alberta’s oil sands to Gulf Coast refineries, was delayed and ultimately rejected last year by the State Department after Heineman and other Nebraska officials criticized the route.

The project should now get “the final green light,” Sen. Mike Johanns, a Nebraska Republican who opposed TransCanada’s original route, said in a statement. “I hope President Obama will swiftly approve the project so we can take a significant step forward in meeting our energy needs.”

After the initial proposal was rejected last year, TransCanada broke the project into two pieces, one running from Alberta to Steele City, Neb., and the other from Oklahoma to Texas refineries. Construction has begun on the southern portion of the pipeline, and environmental activists have been arrested in several areas of Texas after staging protests or chaining themselves to construction equipment.

SOURCE: http://www.mysanantonio.com/business/article/Nebraska-governor-approves-Keystone-XL-route-4215201.php#ixzz2Itv8K5O1

Community Minister Bennett predicts a natural gas boom as way cleared for LNG plant

British Columbia is on the verge of a natural gas development boom that will rival anything Alberta has experienced, according to B.C.’s Community Minister.

Bill Bennett made that comparison Tuesday while speaking at a press conference to announce the final regulatory pieces have fallen in place for a new liquefied natural gas plant to be built on a native reserve near Kitimat.

The massive LNG plant, a joint venture by Apache Canada Ltd. and Chevron Canada Ltd., in co-operation with the Haisla First Nation, will process nearly 700 million cubic feet of gas per day, becoming a key link in the transportation chain between B.C.’ s northeast gas fields and off-shore markets.

Mr. Bennett said the plant, the first of six that have been proposed for the West Coast, will open up B.C.’s massive gas fields and allow the resource industry to thrive like it never has before in the province.

“The story here is a story about British Columbia exploiting an opportunity … on the scale of what faced Alberta 40 to 50 years ago,” Mr. Bennett said.

“The opportunity for B.C. really is on the same scale as for example, Norway, when they discovered they had off-shore oil [and gas discoveries] and Alberta when they discovered they had oil and could ship it to the U.S.,” Mr. Bennett said.

He said both Alberta and Norway have thrived economically because of the way their governments regulated and encouraged the development of rich oil and gas resources.

“It’s built [Alberta’s] economy and made them, you know, the most [economically] comfortable province in Confederation.

“It’s that scale of an opportunity [for B.C.],” he said.

Last month Apache Canada and Chevron Canada announced they were teaming up to develop gas fields in the Horn River and Liard basins, in northeast B.C.

Apache Corp. chairman Steven Farris has described those fields as “two of the most prolific shale gas plays in North America, with more than 50 trillion feet of resource potential.”

At a press conference in Vancouver, Mr. Bennett and John Duncan, federal Minister of Aboriginal Affairs and Northern Development, jointly announced regulatory changes that they said have now cleared the way for construction of the Kitimat LNG plant.

Haisla Chief Councillor Ellis Ross praised both levels of government and industry for working with the band to bring the project forward.

“Our people have been looking at natural gas projects since the 1980s … this is a small example of what can be done if all … four parties are focused,” he said.

Mr. Bennett said the regulatory changes allow the province to enforce provincial environmental standards on reserve lands, which are technically under the jurisdiction of the federal government.

Tim Wall, president of Apache Canada, said the change provides “regulatory certainty” for the Kitimat LNG plant, allowing construction to proceed.

“It’s unusual to be here celebrating regulations,” said Mr. Bennett, who has a reputation for battling red tape.

Mr. Bennett, whose government is trailing in the polls as it seeks re-election in May, said developing B.C.’s gas fields is of “profound” economic importance to the province.

“It’s huge and it has the potential to change the frame for British Columbia in terms of the jobs [created],” he said.

Mr. Bennett said the chronic unemployment problems that burden many small northern communities, particularly native communities, could be relieved by the development of B.C.’s gas fields.

SOURCE: http://www.theglobeandmail.com/news/british-columbia/bennett-predicts-a-natural-gas-boom-as-way-cleared-for-lng-plant/article7649911/?utm_source=Shared+Article+Sent+to+User&utm_medium=E-mail:+Newsletters+/+E-Blasts+/+etc.&utm_campaign=Shared+Web+Article+Links

Dominion Resources plans $1.5 billion pipeline and processing deal for Ohio Utical shale gas

RICHMOND, Va. – Dominion Resources Inc., parent company of Dominion East Ohio Gas, is partnering with a Dallas company to build natural gas processing plants and pipelines to the plants from gas wells in Ohio and parts of Pennsylvania.

In a joint statement issued Thursday, Dominion and Caiman Energy II, LLC said they would sign a $1.5 billion joint venture by the end of the month.

Blue Racer Midstream LLC will be an equal partnership between Dominion and Caiman, with Dominion contributing existing equipment and facilities valued at about $800 million and Caiman contributing the additional funding over time, the companies said.

The development is expected to help the state’s gas and oil industry grow more smoothly because it will provide the necessary pipeline capacity and processing plants immediately to market the gas as it flows from the new wells.

The absence of gas processing plants and pipelines to newly drilled remote wells has hampered Ohio shale gas development, say analysts, creating a kind of chicken and egg situation because such expensive projects could not be built without the certainty that the wells would be drilled.

Dominion will also contribute a processing plant now under construction in Natrium, W. Va., just across the Ohio River, as well as a large diameter pipeline already connecting the plant to Dominion East Ohio’s gathering pipeline system. The plant is being built next to an older but similar facility.

Earlier this year, East Ohio converted part of its major north-south pipeline system in Ohio to move gas from Ohio Utica shale fields to the Natrium processing plant. The lines were built decades ago to move gas from West Virginia and southern Ohio to the heavy industries in Northeast Ohio, industries that have either shrunk or disappeared.

Blue Racer Midstream’s initial plan is to convert more of East Ohio’s major pipelines to “wet gathering lines” and feed the unprocessed gas from thousands of wells the industry anticipates will be drilled in the Utica shale to the Natrium plant.

The plant will clean up raw or rich gas from the wells, removing oils and then separating the more valuable industrial gases — butane, propane, and ethane — from the methane that will become heating or natural gas.

The various gases and oils can then be shipped from the plant to multiple markets, said the companies, either by truck, railroad, pipeline or barge facilities.

“The Utica shale has enormous potential to provide jobs and revenues for the local Ohio economy,” said Thomas F. Farrell II, Dominion’s chairman, president and chief executive officer, in a prepared statement.

Jack Lafield, Caiman’s chairman and chief executive officer, said Dominion “brings well-positioned assets and experienced operations for gathering, processing, fractionating and delivering natural gas and liquids produced from the Utica shale field.”

Three other similar projects are also under way.

Earlier this month, a partnership of companies led by M3 Midstream, LLC, of Houston, announced its $1 billion gas processing plant under constructionin Columbiana County is on schedule to open in May 2013. Chesapeake Energy had been part of the group but sold its share.

In early November, two Denver companies, MarkWest Energy Partners, a gas transportation and processing company, and Antero Resources, a gas producer, partnered with a Texas investment company, the Energy and Minerals Group, to build processing plants and pipelines in Nobel County. State officials estimated the initial investment at $500 million.

In July, NiSource, Inc., parent company of Columbia Gas of Ohio, announced a joint venture with Texas exploration and production company Hilcorp Energy Co. to build about 50 miles of pipeline and a gas processing plant in the state. NiSource estimated the initial cost at about $300 million. In this latest announced project, Dominion intends to contribute its existing gas gathering pipeline system with an eye toward expanding its capacity to move at least 2 billion cubic feet of natural gas per day.

SOURCE: http://www.cleveland.com/business/index.ssf/2012/12/dominion_resources_plans_15_bi.html

Investment in Canada’s natural gas sector set to rival the oil sands

Canada’s natural gas sector could emerge as an investor magnet surpassing interest in the oil sands over the next two decades, The Conference Board of Canada forecasts show.

Natural gas could attract as much as $386-billion in investments by 2035 and create 3.2 million person-years of employment (or an average of 131,460 jobs annually), says the Conference Board of Canada in a new report. This compares to $364-billion investments expected in the oil sands and equal job growth during the period, according to an earlier Board study.

“There are similar numbers on the total investment… in general we see a lot of demand for energy,” Pedro Antunes, co-author of the report, told the Financial Post. “The oil sands have already seen a lot of investments in the last few years, and going forward there will be a lot of activity, but sooner or later it will ease off as we get into production mode.”

The investment surge in natural gas will generate $940-billion in direct and indirect economic growth, including $364-billion directly to the country’s GDP over the forecast period, the Board said in a report published Monday.

British Columbia will lead the natural gas investment charge, attracting $181-billion, with Alberta garnering $154-billion from 2012-2035, the Board estimates.

The report echoes British Columbia Premier Christy Clark’s comments last week that the province’s natural gas industry will rival the oil sands in the future.

“Think about it in these terms: what oil has been to Alberta since the 1970s-80s is what LNG is going to be for British Columbia, nothing less than that,” Ms. Clark told The Canadian Press. “Energy output from LNG will likely be as big as the total energy output today from the oil sands.”

The symbiotic relationship between Alberta’s oil sands and natural gas will only strengthen in future. To fuel their rising output, bitumen producers will triple their natural gas consumption to 1,200 billion cubic feet per year by 2035.

While oil sands, power and transportation sectors will revive the country’s natural gas production, it’s British Columbia’s plans to export liquefied natural gas to Asia that would help liberate the commodity’s price.

Canadian natural gas prices are trailing near a decade-low at $2.88 per million British thermal unit, and production is falling as the U.S. — the industry’s biggest customer — is in the midst of its own shale gas revolution.

While the Board does not expect all the planned LNG projects to proceed, the new industry will need another 1,200 billion cubic feet per year of natural gas by 2035 to satisfy energy-thirsty Asian markets.

Such market access will be crucial to lift commodity prices as the oil and gas sector is currently beholden to the U.S.’s energy revolution, says Michael Binnion, president of Questerre Energy Corp., with interests in Quebec and Alberta shale deposits.

“If you take what we export to U.S. in natural gas discounts and discount on oil price, it is $20-billion to $30-billion we are sending to America in the form of subsidies,” Mr. Binnion said at an oil and gas conference last week. “If I was a citizen of Alberta or federal government and getting $30-billion less royalties and taxes…., there is reason for everybody to be concerned about infrastructure issues.”

While Alberta and B.C. will rake in majority of the natural gas royalties, taxes and revenues, Ontario and Quebec will also see their manufacturing industries benefit from the boom’s trickle-down effect.

Things could look even rosier for Quebec if the province lifts a moratorium on shale gas drilling. The Board expects Quebec to attract more than $6-billion in investment from 2020 onwards if the ban is lifted.

While the Board’s forecast is “prudent” in its assumptions, Mr. Antunes says there are other downside risks that could derail investment potential, such as LNG projects which may not go ahead — although it it unlikely.

Another key risk is a collapse in crude prices due to the North American output glut, similar to what happened in natural gas.

“There are certain risks that oil prices could be weaker and thus, investments in the oil sands, which are highly natural gas-intensive, affect a lot of the demand for natural gas,” Mr. Antunes says.

SOURCE: http://business.financialpost.com/2012/12/17/canadas-386b-natural-gas-investments-set-to-rival-oil-sands/

Canada to Build Oil Pipeline to Serve Asia

‘The U.S. market will not be large enough to accommodate all of Canada’s oil exports,’ said Natural Resources Minister Joe Oliver.

Canada is scrambling to build an expansive new oil pipeline network to reach new markets including Asia as its sole customer, the United States, hikes production, aiming to become the world’s top exporter.

Canada holds the third-largest oil reserves in the world but 98% of its oil exports and 100% of its natural gas shipments go the United States. This has made Canada the top energy supplier to its neighbor.

But that could soon end.

The United States is seeing a boom in shale gas and offshore oil production as it strives for energy independence, and the International Energy Agency recently said the U.S. could become the world’s top oil producer by 2020.

This week, Canada’s Natural Resources Minister Joe Oliver urged a fix: build more pipelines to move oil from landlocked Alberta province to both refineries in eastern Canada and the Pacific coast to fill tankers bound for Asia.

“The U.S. market will not be large enough to accommodate all of Canada’s oil exports,” Oliver said.

“By 2035, Canadian oil exports will be 4 million barrels per day, but total US imports will only be 3.4 million barrels per day. This highlights the need for Canada to access new markets,” Oliver added.

The federal government has put its weight behind several new pipeline projects, but the initiatives face stiff opposition from environmentalists and regional authorities.

“We’re already lacking outlets for the oil now being produced — existing pipelines are at capacity,” said Marco Navarro-Genie, a researcher at Calgary-based Frontier Centre for Public Policy.

“We’re forced to sell our oil at $22 below market value because we can’t get it to any market outside of North America,” Navarro-Genie said.

READ MORE: http://www.industryweek.com/energy-management/canada-build-oil-pipeline-serve-asia

 

Pembina Pipeline Corporation Plans Capital Spend of $965 Million in 2013

Pembina Pipeline Corporation (“Pembina” or the “Company”) (TSX: PPL; NYSE: PBA) announced that its Board of Directors has approved a capital spending budget of approximately $965 million for 2013. This is approximately 75 percent higher than Pembina’s 2012 capital budget and represents the largest in the Company’s history.

“2013 will mark the third consecutive year that Pembina has increased its capital program, again setting a record for the size of our investment,” said Bob Michaleski, Chief Executive Officer. “This impressive capital spending plan is directly aligned with our goal of continuing to provide long-term value to our shareholders, with the vast majority of our 2013 investments being targeted towards fee-for-service projects. Our focus in the next year will be to progress our current suite of projects and bring in the next phase of Pembina’s growth opportunities while maintaining a strong balance sheet and increasing our cash flow per share.”

A substantial portion – $240 million, or about 25 percent – of the 2013 capital spend will be directed towards completing the construction of the Company’s Saturn and Resthaven enhanced liquids extraction facilities along with the associated pipelines. These projects will provide extraction of natural gas liquids (“NGL”) in the field for producers located in west central Alberta.

Pembina also plans to direct $210 million, or 22 percent of its 2013 capital budget towards the expansion of its crude oil, condensate and NGL pipelines. These expansion projects will allow Pembina to continue to meet the growing needs of producers, which has resulted from new technology being deployed and increased activity in the Western Canadian Sedimentary Basin.

Pembina’s 2013 capital spending plan reflects strong growth opportunities that expand on existing operations in each of its four businesses and is expected to continue to drive shareholder value in the coming years.

SOURCE: http://www.sacbee.com/2012/11/28/5016826/pembina-pipeline-corporation-plans.html