CALGARY, Sept. 3, 2013 /PRNewswire/ - Pembina Pipeline Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA) announced today that it has acquired a site in the Alberta Industrial Heartland for approximately $20 million featuring a well-designed existing rail system and utility infrastructure to support the future development of rail, terminalling and storage facilities (the "Heartland Hub"). The Heartland Hub is a further build-out of Pembina's larger Nexus terminal ("PNT"), servicing crude oil and diluent customers for terminalling, storage and rail.
The Heartland Hub will be a receipt and delivery terminal designed to capture opportunities to expand services for Pembina's customers. The site is in close proximity to major oil sands pipeline rights-of-way, existing crude oil and petrochemical infrastructure and Pembina's Redwater site. It is expected to provide interconnectivity via pipeline and rail to downstream refining markets and enable Pembina to offer upstream and downstream customers access to merchant storage and other complementary midstream services.
Key features of the acquisition include:
- 232 acres of well-developed industrial land;
- in excess of 5,000 linear feet of rail track, currently serviced by CN Rail;
- 160 acres of adjacent, existing Pembina lands, which can be developed for future merchant storage and rail expansions;
- 1,280 acres of Pembina salt rights in close proximity to support future cavern development; and
- the ability to access over four million barrels per day of existing and future oil sands and conventional crude oil supply through various current and potential pipeline interconnection(s).
The Heartland Hub is an integral part of the broader PNT which interconnects Pembina's terminalling infrastructure located in the Edmonton, Redwater and Fort Saskatchewan areas. PNT provides unparalleled access to the diverse crude oil grades produced in western Canada. In addition, it is connected to condensate (diluent) transported on third-party as well as Pembina pipeline systems, including imported pipeline and rail supplies. The access and connectivity of PNT provides the broadest array of crude oil and diluent services available to Pembina's customer base.At the same time, Pembina has entered into a multi-year agreement with a major North American refiner for the provision of services to load crude oil railcars within the existing infrastructure at PNT. This service will commence immediately. The agreement provides up to 40,000 barrels per day of various crude grades, and capitalizes on the full service offering of pipeline, storage and rail infrastructure at PNT.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts