“Market Cap $12.1 B As of May 2014
- Industry: Oil & Gas Operations
- Founded: 1997
- Country: Canada
- Website: www.pembina.com
- Employees: 904
- Sales: $4.91 B
- Headquarters: Calgary
- #1720 in Sales
- #1597 in Profit
- #1963 in Assets
- #916 in Market value
Pembina Pipeline Corp. is a transportation and midstream services company. Pembina owns and operates pipelines that transport various hydrocarbon liquids, including conventional and synthetic crude oil, heavy oil and oil sands products, condensate and natural gas liquids produced in western Canada. The Company also owns and operates gas gathering and processing facilities and an oil and natural gas liquids infrastructure and logistics business. The company operates through four business segments: Conventional Pipelines, Oil Sands & Heavy Oil, Midstream, and Gas Services. The Conventional Pipelines segment comprises of tariff based operations of pipelines and related facilities to deliver crude oil, condensate and natural gas liquids. The Oil Sands & Heavy Oil segment consists of the syncrude, horizon, nipisi and mitsue pipelines, and the cheecham lateral, which pipelines and related facilities deliver synthetic crude oil. The Midstream segment engages in the storage operation, its direct interests in terminalling and storage hub services under a mixture of short, medium and long-term contractual arrangements. The Gas Services segment involves in the natural gas gathering and processing facilities. Pembina Pipeline was founded on September 29, 1954 and is headquartered in Calgary, Canada.”
“Pembina Pipeline History
The company’s roots can be traced back to 1954 when the Pembina Pipeline system was built to serve the Pembina oil field in the region of Drayton Valley, Alberta; Pembina Pipe Line Ltd was incorporated that year on November 22. For the next 37 years the company remained focussed on delivering oil to Edmonton using the Pembina pipeline. In 1991 it made its first acquisition, Peace Pipe Line Ltd. Four years later it made its second move, buying half of the Bonnie Glen System, a 250 km long network serving oil fields in central Alberta. It wasn’t until the 4th quarter of 1997 that Pembina joined the Toronto Stock Exchange, going public with an IPO of over $600 mn; at the same time it converted to an income fund (trust). 1997 was also the year Inter Pipeline Fund the leading transporter of oilsands bitumen, was established. Three years later in 2000 Pembina made its biggest move to date that doubled its size overnight when it took over Federated Pipe Lines Ltd which added 3,200 km of pipeline to Pembina’s transportation network. After the takeover, Pembina’s network in Western Canada was 7000 km long and transported nearly 550,000 b/d of oil and natural gas.
Pembina first entered the Alberta oil sands industry in 2001 when the company acquired Alberta Oil Sands Pipe Line Lts.(AOSPL). The AOSPL system comprises a 434 km mainline system and related facilities and has a single receipt point: Syncrude Canada’s oil sands operation near Fort McMurray, Alberta. In 2003 Pembina completed an expansion of the AOSPL line, which boosted the pipeline’s capacity by 275,000 bbls/d. The AOSPL is now known as the Syncrude Pipeline. The pipeline provides transportation service to Syncrude Canada Ltd., which operates an oil sands extraction and upgrading facility. Also in 2013 Pembina acquired a 50 percent non-operating interest of the Fort Saskatchewan Ethylene Storage Facility. The facility, located near Fort Saskatchewan, Alberta, consists of underground storage caverns used to store ethylene and a related central operating facility. The facility is the only large-scale ethylene storage facility in Alberta and is an integral component of the Alberta petrochemical infrastructure.
In 2007 and 2008 Pembina completed two vital pipeline systems. In 2007 the Cheecham Lateral was completed, the pipeline serves oil sands producers operating southeast of Fort McmUrray, Alberta. The Horizon Pipeline was completed the following year. The Horizon Pipeline provides transportation service to Canadian Natural Resources Ltd’s oil sands operation located north of Fort McMurray, Alberta. This was Pembina’s largest pipeline project to date and increased the company’s contracted oil sands transportation capacity by 250,000 barrels per day (bbls/d) to 775,000 bbls/d. In June 2009, Pembina made a strategic entry into the Gas Services business when they acquired the Cutbank Complex for $300 million. The purchase included 300 km of gathering lines and ownership in three sweet gas processing plants with 360 million cubic feet per day (mmcf/d) of processing capacity (capacity of 305 mmcf/d is net to Pembina). These assets are connected to their Peace Pipeline system and serve an active exploration and production area in the Western Canadian Sedimentary Basin.
In October 2010, Pembina Pipeline Income Fund was converted to Pembina Pipeline Corporation. The TSX began listing Pembina common shares (TSX symbol: PPL) and convertible debentures (TSX symbol: PPL.DB.B). The first day PPL was listed on the TSX the closing price was $21.25 per share. In 2011,Pembina completed construction and start-up of the Nipisi and Mitsue Pipelines, which service the Pelican and Peace River heavy oil regions of Alberta.Later that year Pembina announced plans to construct new enhanced liquids extraction facilities in the Resthaven and Berland areas of west central Alberta, subject to regulatory and environmental approvals.
In 2012 Pembina announced the proposed acquisition of Provident Energy Ltd.to create a leading player in the North American energy infrastructure sector.On April 2, 2012,Pembina announced that it had completed its acquisition of Provident Energy Ltd. and began trading on the New York Stock Exchange under the symbol “PBA”.
In December 2013, Pembina announced that they had reached binding commercial agreements to proceed with constructing approximately $2 billion in pipeline expansions (the “Phase III Expansion”). The Phase III Expansion is underpinned by long-term take-or-pay transportation services agreements with 30 customers in Pembina’s operating areas and is expected to be in service between late 2016 and mid 2017, subject to environmental and regulatory approvals. The 540 kilometre (“km”) Phase III Expansion will follow and expand upon certain segments of the Company’s existing pipeline systems from Taylor, British Columbia southeast to Edmonton, Alberta to fulfill capacity needs for Pembina’s customers, with priority being placed on areas where debottlenecking is essential.
*Information from Forbes.com and Wikipedia.org
**Video published on YouTube by “ freshwatercreativeco“