Profile: Pembina Pipeline Corp (PBA.N)
Pembina Pipeline Corporation (Pembina), incorporated on October 1, 2010, is an energy transportation and service provider. The Company operates through four segments: Conventional Pipelines, Oil Sands & Heavy Oil, Gas Services and Midstream. Pembina owns or has interests in conventional crude oil, condensate and natural gas liquids (NGL) pipelines, oil sands and heavy oil pipelines, gas gathering and processing facilities, an NGL infrastructure and logistics business and midstream services that span across its operations. The Company's assets are located in Canada and in the United States. The Company also owns and operates gas gathering and processing facilities and an oil and natural gas liquids infrastructure and logistics business. Pembina offers a spectrum of midstream and marketing services to the energy sector.
Conventional Pipelines consists of the operations of pipelines and related facilities to deliver crude oil, condensate and NGL in Alberta, British Columbia, Saskatchewan, and North Dakota, United States. Pembina's Conventional Pipelines business comprises a pipeline network of over 10,000 kilometers, including expansion projects that are under development. This network transports hydrocarbon liquids and extends across Alberta and parts of British Columbia, Saskatchewan and North Dakota. The primary objectives of this business are to provide transportation services for customers.
Oil Sands & Heavy Oil
Pembina is the transporter of synthetic crude oil for Syncrude Canada Ltd. (via the Syncrude Pipeline) and Canadian Natural Resources Limited'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. As of December 31, 2017, the Oil Sands & Heavy Oil business operates approximately 1,650 kilometers of pipeline and has approximately 975 thousand barrels per day (mbpd) of capacity.
Pembina's operations include a natural gas gathering and processing business. Gas Services provides gas gathering, compression, condensate stabilization, shallow cut processing and both sweet and sour deep cut processing services for its customers, primarily on a fee-for-service basis under long-term contracts. The NGL extracted through the facilities in this business is transported by Pembina's Conventional Pipelines business and Vantage pipeline systems. A portion of the volumes are further processed at Pembina's fractionation facilities. Operating assets within Gas Services include Pembina's Cutbank Complex (the Cutbank Complex), Pembina's Saturn complex (the Saturn Complex), Pembina's Resthaven facility (Resthaven) and Pembina's Saskatchewan Ethane Extraction Plant (SEEP).
The Cutbank Complex is located near Grande Prairie, Alberta; this facility includes six shallow cut processing plants: the Cutbank Gas Plant, Musreau I, Musreau II, Musreau III, the Kakwa Gas Plant and one deep cut gas processing plant (the Musreau Deep Cut facility), as well as the Kakwa River Facility, which comprise approximately 200 million cubic feet per day (MMcf/d) raw to deep cut sour gas processing facility and over 50 MMcf/d shallow cut sweet gas processing facility. In total, the Cutbank Complex has approximately 700 MMcf/d of shallow cut sweet gas processing capacity (approximately 620 MMcf/d net to Pembina), over 200 MMcf/d of sweet deep cut extraction capacity and approximately 200 MMcf/d of deep cut sour gas processing capacity. The Cutbank Complex also includes approximately 450 kilometers of gathering pipelines and nine field compression stations.
The Saturn Complex is located near Hinton, Alberta, which includes two identical approximately 200 MMcf/d deep cut sweet gas processing plants (the Saturn I and Saturn II facilities) for a total of over 400 MMcf/d of deep cut processing capacity, as well as 25 kilometer of gathering pipelines. The Company's Resthaven is located near Grande Cache, Alberta, which includes approximately 300 MMcf/d (gross) of deep cut sweet gas processing capacity, as well as 30 kilometer of gathering pipelines. Its SEEP is located to service the southeast Saskatchewan Bakken region, which has deep cut sweet gas processing capacity of approximately 60 MMcf/d, ethane fractionation capabilities of over four mbpd and a 104-kilometer ethane delivery pipeline.
Pembina offers customers a suite of midstream products and services through its Midstream business. Its Crude oil Midstream assets include approximately 10 truck terminals providing pipeline and market access for crude oil and condensate production that are not pipeline connected; Pembina Nexus Terminal, which includes an area where approximately 20 inbound pipeline connections and 10 outbound pipeline connections converge providing access to approximately one million barrels of oil per day (mmbpd) of crude oil and condensate supply connected to the terminal; Edmonton North Terminal (ENT), which includes approximately 900 millions of barrels (mbbls) of above ground storage having access to crude oil, synthetic crude oil and condensate supply transported on Pembina's operated pipelines and products from various third-party operated pipelines, and Canadian Diluent Hub, which is under development.
NGL midstream includes two integrated NGL operating systems: Redwater West and Empress East. The Redwater West NGL system (Redwater West) includes approximately 750 MMcf/d (over320 MMcf/d net to Pembina) Younger extraction and fractionation facility in British Columbia; two over 75 mbpd NGL fractionators (RFS I and RFS II) and approximately eight million barrels (mmbbls) of finished product cavern storage at Redwater, Alberta, and third-party fractionation capacity in Fort Saskatchewan, Alberta. 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 customer needs for importing and exporting NGL products.
The Empress East NGL system (Empress East) includes approximately two billion cubic feet per day (bcf/d) of capacity in the straddle plants at Empress, Alberta; over 20 mbpd of fractionation capacity and approximately one mmbbls of cavern storage in Sarnia, Ontario, and over seven mmbbls of hydrocarbon storage at Corunna, Ontario. 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 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 further fractionation, distribution and sale. Storage and terminalling services are also provided to customers at the Corunna site.
Pembina Pipeline Corp