Pembina Pipeline Corporation Announces Positive Final Investment Decision on an Integrated Petrochemical Facility

(All 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 about Adjusted EBITDA, see "Non-GAAP Measures" herein.)

CALGARY, Alberta, Feb. 4, 2019 /PRNewswire/ -- 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 a positive final investment decision to construct a 550,000 tonne per annum integrated propane dehydrogenation ("PDH") plant and polypropylene ("PP") upgrading facility ("PDH/PP Facility") through their equally-owned joint venture entity, Canada Kuwait Petrochemical Corporation ("CKPC"). 

CKPC brings together two strategically aligned organizations, with complimentary strengths, united in developing and operating a world-scale Alberta PDH/PP Facility. PIC brings comprehensive PDH and PP project experience, along with diversified global petrochemical marketing expertise. Pembina will manage long-term propane supply and provide Alberta-specific operating and project execution experience, feedstock connectivity and strong producer relationships. 

The PDH/PP Facility will be strategically located in Alberta's Industrial Heartland, adjacent to Pembina's Redwater fractionation complex ("RFS") and will consume approximately 23,000 barrels per day of local propane from RFS and other regional fractionation facilities. Ideally located in the Western Canadian Sedimenatry Basin, the facility will have long-term access to an abundant supply of propane feedstock, with a structural cost advantage when compared to other North American facilities.   

The PDH/PP Facility has a nameplate capacity of 550,000 metric tonnes of PP per year, including impact and random copolymers. PP is a high value polymer, which can be cost-effectively transported, using existing third-party infrastructure, throughout North America and to global markets. PP is fully recyclable and can be used in a wide range of finished products including automobiles, medical devices, food packaging and home electronic appliances, among others. The market for PP continues to see favorable long-term fundamentals with global PP demand growth outpacing global economic growth. PIC, with its extensive global marketing experience and worldwide sales presence, will be fundamental to ensuring CKPC becomes a PP supplier of choice for customers.