Pembina Completes Horizon Pipeline On Schedule



    CALGARY, July 3 /CNW/ - Pembina Pipeline Income Fund (TSX: PIF.UN) is
pleased to report the successful completion of the Horizon Pipeline by its
wholly owned subsidiary Pembina Pipeline Corporation ("Pembina"). Work on the
$400 million project, which began in November 2006, was substantially
completed on July 1, 2008, on schedule.
    Pembina acquired the Alberta Oilsands Pipe Line ("AOSPL"), now referred
to as the Syncrude Pipeline, in late 2001 and since that time has spent over
$600 million to expand its service offering in the Athabasca oil sands region.
 In 2004, Pembina completed a capacity expansion of the Syncrude Pipeline,
which provides 389,000 barrels per day ("bpd") of dedicated synthetic crude
oil transportation capacity to Syncrude Canada Ltd. The following year,
Pembina completed construction of the 136,000 bpd Cheecham Lateral pipeline. 
The Horizon Pipeline, which will provide 250,000 bpd of dedicated
transportation capacity to Canadian Natural Resources Limited's ("CNRL")
Horizon Oil Sands Project, entailed completion of the twinning of the original
AOSPL asset and construction of 73 kilometres of new pipeline connecting to
CNRL's oil sands facility. Pembina now has 775,000 bpd of fully contracted
synthetic crude oil transportation capacity in three distinct pipelines
serving customers in this region.
    Glen Fyfe, Pembina's Project Manager for these undertakings, commented: 
"The Horizon Pipeline is the largest pipeline project ever undertaken by
Pembina and we are proud to have completed it on schedule. Since expansion of
AOSPL began in 2002, Pembina has achieved a total of over 2.5 million man
hours of work without a lost time safety incident. Pembina would like to
thank, and to congratulate, all of the designers, suppliers, contractors and
other stakeholder groups involved with the successful execution of these
projects during a period of unprecedented construction challenges in the Fort
McMurray to Edmonton corridor."
    The Horizon Pipeline will be operated under the terms of a 25-year
extendible transportation agreement providing Pembina a fixed return on
invested capital and full recovery of operating costs. Pembina projects that
the Horizon Pipeline will contribute incremental net operating income of
$45 million per year over the 25-year contract term, commencing on August 1,
2008.
    Pembina will continue to focus on the expansion of its service capability
in the growing oil sands and heavy oil sector. Pembina's Mick Dilger, Vice
President Business Development, stated: "The Horizon Project is representative
of the ongoing optimization and build-out of our existing asset portfolio. 
This model enables Pembina to offer competitive service to customers while
realizing attractive returns and minimizing our operating footprint and
environmental impact. We expect to employ a similar strategy in the
construction of our proposed Nipisi and Mitsue Pipelines. Further, Pembina's
existing investments in oil sands and heavy oil infrastructure have embedded
growth opportunities which we hope to realize as our customers undertake
planned expansion of their oil sands production facilities in the future."
    Pembina Pipeline Income Fund (TSX: PIF.UN, PIF.DB.B) is among the leading
issuers in the Canadian energy infrastructure trust sector. Pembina's
extensive network of conventional liquids feeder pipelines, and growing
presence in the oil sands, heavy oil and midstream sectors, provide an
integral service to the western Canadian energy industry. This balanced
portfolio of premium, long-life energy infrastructure assets supports the
stability and sustainability of the Fund. Information on the Pembina Pipeline
Income Fund (the "Fund") is available on the Company's website at
www.pembina.com.

    Forward-Looking Information and Statements

    This document contains certain forward-looking statements that are based
on the Fund's current expectations, estimates, projections and assumptions in
light of its experience and its perception of historical trends. In
particular, this document contains forward-looking statements regarding net
operating income, which is based upon the assumptions that the pipeline system
will be in service on August 1, 2008, that future tolls are consistent with
internal projections, that counterparties fulfill their contract obligations
in a timely manner, that there are no unforeseen events preventing performance
of contracts by Pembina, and that there are no unforeseen material costs
relating to the pipeline system which are not recoverable from shippers. In
some cases, forward-looking statements and information can be identified by
terminology such as "may", "will", "should", "expects", "projects", "plans",
"anticipates", "targets", "believes", "strives", "estimates", "continue",
"designed", "objective", "maintain", "schedule", "endeavor" and similar
expressions. The forward-looking statements are not guarantees of future
performance and are subject to a number of known and unknown risks and
uncertainties, including, but not limited to: the impact of competitive
entities and pricing; reliance on key industry partners, alliances and
agreements; the strength and operations of the oil and natural gas production
industry and related commodity prices; the continuation or completion of third
party projects; regulatory environment and inability to obtain required
regulatory approvals; tax laws and treatment; fluctuations in operating
results; the ability of Pembina to raise sufficient capital to complete future
projects and satisfy future commitments; construction delays; labour and
material shortages; and certain other risks detailed from time to time in the
Fund's public disclosure documents. The Fund believes the expectations and
material factors and assumptions reflected in these forward-looking statements
are reasonable as of the date hereof, but no assurance can be given that these
expectations, factors and assumptions will prove to be correct. Undue reliance
should not be placed on these forward-looking statements as both known and
unknown risks and uncertainties, including those business risks stated above,
may cause actual performance and financial results in future periods to differ
materially from any projections of future performance or results expressed or
implied by such forward-looking statements. Accordingly, readers are cautioned
that events or circumstances could cause results to differ materially from
those predicted, forecasted or projected. Such forward-looking statements are
expressly qualified by the above statements. The Fund does not undertake any
obligation to publicly update or revise any forward-looking statements or
information contained herein, except as required by applicable laws. 
Management of the Fund approved the financial outlook contained herein as of
the date of this press release. The purpose of the financial outlook contained
herein is to give the reader an indication of the value to Pembina of the
Horizon Pipeline. Readers should be aware that the information contained in
the financial outlook contained herein may not be appropriate for other
purposes.

    %SEDAR: 00008906E




For further information:

For further information: Glenys Hermanutz, Vice President, Corporate
Affairs, Pembina Pipeline Corporation, (403) 231-7500, 1-888-428-3222, e-mail:
investor-relations@pembina.com


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