Pembina Pipeline Strikes Service Deal

Pembina Pipeline shares were higher nearly 4% on Thursday after the company said it has struck a 20-year infrastructure and service agreement with Chevron’s (CVX) Canada operations.

Under the deal, Chevron has the right to require Pembina to construct, own and operate gas gathering pipelines and processing facilities, liquids stabilization facilities and other supporting infrastructure for the area of dedication, together with Pembina providing long-term service for Chevron on its pipelines and fractionation facilities.

Subject to Chevron and regulatory approvals, the infrastructure developed over the term of this agreement has the potential to represent a multi-billion dollar investment by Pembina.

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