Pembina Pipeline

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Pembina Pipeline Corporation
Public
Traded as
Industry Oil & Gas
Pipeline Transport Storage
Petroleum Industry
Founded September 24, 1954
Headquarters Calgary, Alberta, Canada
Key people
Michael (Mick) H. Dilger President, CEO & Director
Scott Burrows VP, Capital Markets & CFO
Stuart Taylor VP, NGL & Natural Gas Facilities
Paul Murphy VP, Pipeline & Crude Oil Facilities
Randall J. Findlay Chair, Director
Products Hydrocarbon Liquids: Conventional & Synthetic
Crude Oil
Heavy Oil & Oil Sand Products
Condensate(Diluent) and Natural Gas Liquids
Number of employees
1250+
Divisions NGL & Natural Gas Facilities
Pipeline & Crude Oil Facilities
Technical Services Unit
Website www.pembina.com

Pembina Pipeline is a transportation, midstream and gas service provider that has been serving North America's energy industry for over 60 years. Pembina owns and operates pipelines that transport various hydrocarbon liquids including conventional and synthetic crude oil, heavy oil and oil sands products, condensate (diluent) and natural gas liquids produced in western Canada and North Dakota. Pembina also owns and operates gas gathering and processing facilities and an oil and natural gas liquids infrastructure and logistics business. The company operates facilities in western Canada and in natural gas liquids markets in eastern Canada and the United States.

History[edit]

The Pembina Pipeline system was constructed in 1954 to transport crude oil from the Pembina field near Drayton Valley, Alberta to Edmonton, Alberta. The Pembina system serves one of the oldest oil-producing areas in Alberta. Pembina Pipe Line Ltd. was incorporated under the laws of the Province of Alberta and was authorized to commence business on November 22, 1954. Pembina completed its initial public offering (IPO) as the Pembina Pipeline Income Fund in October 1997 and started trading on the TSX under PIF.UN on October 1998. Pembina later converted to a corporate structure, as Pembina Pipeline Corporation, in October 2010 and was listed on the TSX under PPL.

Pembina has grown its business over the years through construction and acquisitions to include assets and expertise in the oil sands, gas services and midstream sectors. The company’s acquisition of Provident Energy Ltd. in January 2012 established Pembina as a significant operator in the North American energy infrastructure sector. Pembina started trading on the NYSE in April 2012 under the symbol PBA.

Operations[edit]

Conventional Pipelines

Pembina owns and operates 9,020 km pipeline network that extends across much of Alberta and parts of B.C., Saskatchewan and North Dakota. Pembina’s Conventional Pipelines transport approximately half of Alberta's conventional crude oil production, about thirty percent of the natural gas liquids (NGLs) produced in western Canada, and virtually all of the conventional oil and condensate produced in B.C. and these numbers are growing with their numerous expansion projects. The primary objectives of this business are to provide safe and reliable transportation services for customers, pursue opportunities for increased throughput, and maintain and/or grow sustainable operating margin on invested capital by capturing incremental volumes, expanding its pipeline systems, managing revenue and following a disciplined approach to its operating expenses.

Gas Services

Pembina's operations include a growing natural gas gathering and processing business, which is positioned in active and emerging NGL-rich plays in the Western Canadian Sedimentary Basin (WCSB) and is integrated with Pembina's other businesses. Gas Services provides gas gathering, compression, and both shallow and deep cut processing services for its customers, primarily on a fee-for-service basis under long-term contracts. The NGL extracted through this business' facilities are transported by Pembina's Conventional Pipelines business on its Peace pipeline system.

Operating assets within Gas Services include:

Pembina's Cutbank Complex - located near Grande Prairie, Alberta - includes four shallow cut sweet gas processing plants (the Cutbank Gas Plant, the Musreau and Musreau II Gas Plants and the Kakwa Gas Plant) and one deep cut gas processing plant (the Musreau Deep Cut Facility).

Pembina also owns and operates the Saturn Complex located near Hinton, Alberta, the Resthaven Facility – located near Grande Cache, Alberta and the Saskatchewan Ethane Extraction Plant ("SEEP") - located to service the southeast Saskatchewan Bakken region.

Oil Sands & Heavy Oil

Pembina supports Alberta’s oil sands and heavy oil industry. Pembina is the sole transporter of crude oil for Syncrude Canada Ltd. (via the Syncrude Pipeline) and Canadian Natural Resources Ltd.‘s Horizon Oil Sands operation (via the Horizon Pipeline) to delivery points near Edmonton, Alberta. Pembina also owns and operates the Nipisi and Mitsue pipelines, which provide transportation for producers operating in the Pelican Lake and Peace River heavy oil regions of Alberta, and the Cheecham Lateral, which transports synthetic crude to oil sands producers operating southeast of Fort McMurray, Alberta. The Oil Sands & Heavy Oil business operates approximately 1,650 km of pipeline.

Midstream

Pembina offers a suite of midstream products and services through their Midstream business as follows:

Crude oil midstream targets oil and diluent-related development opportunities from key sites across Pembina’s network. Assets include: truck terminals, storage, crude oil by rail services and the Pembina Nexus Terminal ("PNT").

NGL midstream includes two NGL operating systems – Redwater West and Empress East.

Redwater West purchases NGL mix from various natural gas and NGL producers and fractionates it into finished products for further distribution and sale. Also located at the Redwater site is Pembina's rail-based terminal which services Pembina's proprietary and customer needs for importing and exporting specification NGL and crude oil.

Empress East extracts NGL mix from natural gas at the Empress Straddle plants and purchases NGL mix from other producers/suppliers. Ethane and condensate are generally fractionated out of the NGL mix at Empress and sold into Alberta markets. The remaining NGL mix is transported by pipeline to Sarnia, Ontario for fractionation, distribution and sale. Propane and butane are sold into central Canadian and eastern U.S. markets.

Safety[edit]

Pembina’s Safety, Environment & Security (SES) management system is embedded in their corporate culture. A commitment to excellence in SES is reinforced in their daily operations through the development of stringent standards, regular safety meetings, extensive contractor screening, rigorous project inspection, review of potential hazards, and ensuring their operations meet or exceed industry best practices.

Pembina believes all injuries and incidents are preventable; working continuously towards the goal of zero workplace incidents. To achieve this, Pembina employs a combination of programs and procedures (including their emergency response plans) and an incident reporting, tracking and investigation system.

Tracking safety statistics is just as important as measuring operating and financial performance. It's a key part of Pembina’s operations, allowing them to see how they're doing and where improvements are needed. On a regular basis, Pembina’s field representatives, safety personnel and management teams review all incidents that do happen, allowing the company to understand the root cause of the incident and implement corrective and/or preventative measures.

Integrity Management[edit]

Pembina understands the integrity of their energy infrastructure – pipelines, storage tanks, gas processing plants, fractionators and associated facilities – is integral to the health and safety of the communities in which they operate. Not only does a strict focus on safe and reliable operations lessen the likelihood of incidents, it also reduces operating costs over the long term and helps sustains a license to operate. With this in mind, Pembina developed and continuously improves their asset integrity management programs. Given the nature of their asset base, Pembina’s integrity management programs are focused on two core areas: pipeline integrity and facility integrity.