| Pembina Pipeline Corporation | |
| Type: | Public |
| Traded As: | S&P/TSX 60 component |
| Location City: | Calgary |
| Location Country: | Canada |
| Key People: | Scott Burrows President & CEO Henry W. Sykes Chairman |
| Industry: | Petroleum industry Pipeline transport Storage |
| Products: | Ethylene and Oil Storage Natural gas |
| Revenue: | C$6,202 mil 202014%[1] |
| Net Income: | C$1,278 mil 201845% |
| Operating Income: | C$597 mil 2018 20% |
| Assets: | C$26,664 mil (Dec'18)4% |
| Equity: | C$14,404 mil (Dec'18)4% |
| Divisions: | Pembina Marketing Ltd Syncrude pipeline Horizon Pipeline |
| Num Employees: | 1260 (2016)[2] |
Pembina Pipeline is a Canadian corporation that operates transportation and storage infrastructure delivering oil and natural gas to and from parts of Western Canada. Since 2003, storage has also included ethylene at one location. Western Canada is the source of all products transported by Pembina pipeline systems which include the Syncrude pipeline, Horizon pipeline, and Cheecham oilsands pipelines.
Pembina Pipeline Corporation became an income fund (trust) in 1997 joining the Toronto Stock Exchange with an IPO of $600 million. And on October 1, 2010 it converted to a public corporation and changed its official name from Pembina Pipeline Income Fund to Pembina Pipeline Corporation.[3] [4] As of 2016, the company had more than 1260 employees, up from 427 in 2010. The company's total assets nearly doubled in 2017.
The company can be traced back to 1954 when the Pembina pipeline system was built to serve the Pembina oil field in the Drayton Valley region. For the next 37 years, the company's main operations were centred on oil delivery to Edmonton using the Pembina pipeline.
In 1991, the company made its first acquisition of Peace Pipe Line Ltd., and five years later it bought half of the Bonnie Glen System - a 250 km long network serving oil fields in central Alberta. Inter Pipeline Fund, the leading transporter of oilsands bitumen, was also established in 1997.[5]
Three years later in 2000, Pembina took over Federated Pipe Lines Ltd in a $340 million deal from a group headed by Imperial Oil (Pembina needed to use a $420 million credit facility). 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.[6]
In 2001, Pembina sold a salt cavern in Hardisty to Canadian Crude Separators Inc., and acquired 100 per cent of the main Syncrude pipeline by taking over its operator, Alberta Oil Sands Pipeline Ltd. for $225 million. The buyout of Alberta Oil Sands Pipeline Ltd. was instrumental in Pembina's growth by giving them access to a number of large oil and gas customers, among them Imperial Oil, Conoco Oil, Nexen and Petro-Canada.[7]
On June 24, 2003, Pembina bought 50 per cent of an ethylene storage facility in Fort Saskatchewan for $185 million from NOVA Chemicals Corp, the other 50 per cent owned by Dow Chemical Canada.[8]
On June 2, 2009 Pembina acquired the Cutbank Complex from a Talisman Energy subsidiary for $300 million in cash (provided by a credit facility).[9]
In 2012, Pembina purchased Provident Energy, a Canadian company, for $3.1 billion in stock.[10] In 2017, it purchased rival energy infrastructure corporation Veresen, for $9.7 billion.[11] At the time, Veresen was primarily a natural gas transportation company, while Pembina focused on transporting oil and other liquids.
In 2019, Pembina purchased Kinder Morgan Canada Limited, along with a portion of the Cochin pipeline, for $4.35 billion.[12]
Operations are segmented into three main areas, two of them distinguished by the type of oil they transport (conventional, oil sands & heavy oil infrastructure) and the other dealing mostly with services related to storage/logistics (terminals, hubs, and midstreams) as well as marketing.[13]
Conventional Oil Infrastructure - oversees pipelines in British Columbia and Alberta that transport crude oil and NGL's. There are 2 main systems, the Alberta System and the BC System.
Oil Sands and Heavy Oil Infrastructure - manages pipelines (and their associated facilities) used to transport synthetic crude from upgrading facilities. The division oversees Syncrude, Cheechan and Horizon pipelines, the last 2 relatively new (operating from 2006 and 2008 respectively). All 3 have long term contracts (over 20 years). Syncrude represents half of the total design capacity.
Midstream and Marketing - Pembina's storage/terminal business. 18% of revenue comes from storage and related services not connected with the Cutbank Complex and Ethylene storage.