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Pembina Pipeline Corporation Announces Lump Sum Contract for Petrochemical Facility
Pembina Pipeline Corporation Announces Lump Sum Contract for Petrochemical Facility ...
About this update from Pembina Pipeline Corporation
[{"type":"text","content":"\n\n\n\nPembina Pipeline Corporation Announces Lump Sum Contract for Petrochemical Facility\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, Jan. 7, 2020\n\n\n\nAll financial figures are approximate and in Canadian dollars unless otherwise noted. This news release refers to adjusted earnings before interest, taxes, depreciation and amortization (\"adjusted EBITDA\"), which is a financial measure that is not defined by Generally Accepted Accounting Principles (\"GAAP\"). For more information see \"Non-GAAP Measures\" herein.\n CALGARY, Jan. 7, 2020 /CNW/ - Pembina Pipeline Corporation (\"Pembina\" or the \"Company\") (TSX: PPL; NYSE: PBA) along with Petrochemical Industries Company K.S.C. (\"PIC\") of Kuwait, is pleased to announce that Canada Kuwait Petrochemical Corporation (\"CKPC\") has executed a lump sum engineering, procurement and construction (\"EPC\") contract related to the construction of the propane dehydrogenation (\"PDH\") facility within its integrated PDH and polypropylene (\"PP\") upgrading facility (\"PDH/PP Facility\"). With this contract, CKPC has fixed approximately 60 percent of the cost of the PDH/PP Facility thus far. In conjunction with execution of the lump sum contract, the Company also announces an update to its share of the capital cost for the PDH/PP Facility and project timing.\nFollowing execution of the lump sum EPC contract and with cost certainty for approximately 60 percent of the project cost, Pembina has revised its proportionate share of the capital cost of the PDH/PP Facility, including the 100 percent directly-owned supporting facilities, to $2.7 billion. The increase over the prior estimate is associated with the PDH facility, which is now fixed under the lump sum EPC contract. The revised capital cost estimate will not affect Pembina's previously announced 2020 capital budget. CKPC now expects the PDH/PP Facility to be placed into commercial service in the second half of 2023.\n\"When faced with the proposition of trading returns for risk, Pembina has consistently chosen certainty and downside protecti...