Our Operations

At Pembina, we are more than pipelines. Pembina represents a pure-play midstream company that allows investors to participate in the resurgent volume growth of the Western Canadian Sedimentary Basin. With strategically located assets, strong demand for our services and an integrated business platform,
we are an industry leader and well-positioned for growth.

 

Conventional Pipelines

Pembina's business originated in 1954 with its conventional pipeline system located in the Pembina Cardium formation near Drayton Valley, Alberta. Over the years, we have grown these assets substantially and today we own and operate a well-maintained and strategically located 9,300 km pipeline network that extends across much of Alberta and parts of British Columbia, Saskatchewan and North Dakota.

We own and operate a well-maintained and strategically located 9,300 km pipeline network that extends across much of Alberta and parts of British Columbia, Saskatchewan and North Dakota.


Our goal in Conventional Pipelines is to provide safe and reliable transportation services for customers while pursuing opportunities for increased throughput.

  • Operational excellence: 97% reliable in 2015
  • Strategically positioned infrastructure in active and emerging oil- and NGL-rich plays
  • Connected to refineries and export pipelines
  • Over 300 receipt points adding diversity to producers and product type
  • 100% fee-for-service revenue (no direct commodity exposure)
  • Significantly underpinned by long-term contracts, with take-or-pay provisions
  • Established infrastructure captures incremental production from major resource plays
  • Diversification in geology and geography
  • Continued construction of major gathering laterals into existing and new service areas
  • Excellent customer relations

We transport approximately half of Alberta's conventional crude oil production, about thirty percent of the NGL produced in western Canada, and virtually all of the conventional oil and condensate produced in B.C. and these numbers are growing with our numerous expansion projects.

Gas Services

Pembina's operations include a growing natural gas gathering and processing business, which is strategically positioned in active and emerging NGL-rich plays in western Canada and is integrated with Pembina's other businesses. Gas Services provides gas gathering, compression, 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 are transported by Pembina's Conventional Pipelines business on its Peace and Vantage pipeline systems. A portion of the volumes are further processed at Pembina's fractionation facilities.

Pembina's natural gas gathering and processing business is strategically positioned in active and emerging NGL-rich plays in the Western Canadian Sedimentary Basin and integrated with Pembina's other businesses. Operating assets in this business include:

  • Pembina's Cutbank Complex – located near Grande Prairie, Alberta, this facility includes six shallow cut sweet gas processing plants (the Cutbank Gas Plant, the Musreau Gas Plant, the Musreau II Facility, the Musreau III Facility, the Kakwa Gas Plant and the Kakwa River Facility) and one deep cut gas processing plant (the Musreau Deep Cut Facility). In total, the Cutbank Complex has 675 MMcf/d (618 MMcf/d net to Pembina) of shallow cut sweet gas processing capacity, 205 MMcf/d of sweet deep cut extraction capacity and 200 MMcf/d of integrated shallow and deep cut sour gas processing capacity. The Cutbank Complex also includes approximately 450 km of gas pipelines and nine field compression stations.
  • Pembina's Saturn Complex – located near Hinton, Alberta, includes two identical 200 MMcf/d of deep cut gas processing capacity plants, Saturn I and Saturn II, for a total of 400 MMcf/d deep cut extraction capacity, as well as approximately 25 km of gathering pipelines.
  • Pembina's Resthaven Facility (together with the Resthaven Expansion) – located near Grande Cache, Alberta, includes 300 MMcf/d (gross) of integrated shallow and deep cut gas processing capacity, as well as approximately 30 km of gathering pipelines.
  • Pembina's Saskatchewan Ethane Extraction Plant (SEEP) – located to service the southeast Saskatchewan Bakken region, has a deep cut processing capacity that could reach 60 MMcf/d and ethane plus fractionation capabilities up to 4,500 bpd and 104 km of ethane delivery pipeline. 

Visit our Projects page to learn how we plan to grow gas processing capacity to 1.8 billion cubic feet per day.

 


 

Assets in Gas Services aggregate supply for and are connected to Pembina's Peace Pipeline system. The Company continues to progress construction and development of other facilities in its Gas Services business (e.g. Duvernay I) to meet the growing needs of producers in west central Alberta.
  • Operational excellence: 97% reliable in 2015
  • Strategically positioned infrastructure in active and emerging NGL-rich plays: regional wells contain total NGL of 75 -100 barrels/MMcf
  • Fee-for-service revenues
  • Expansion projects supported by long-term contracts
  • Aggregate supply for Pembina's integrated assets to provide comprehensive services for our customers

Underpinned by long-term contracts: Approximately 75% of 2015 revenue was protected with “take-or-pay” commitments

Oil Sands & Heavy Oil

Pembina plays an important role in supporting 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.

Pembina plays an important role in supporting Alberta's oil sands and heavy oil industry

Oil Sands & Heavy Oil

The Oil Sands & Heavy Oil business operates approximately 1,650 km of pipeline and has approximately 880,000 bpd of capacity under long-term, extendible contracts, which provide for the flow-through of eligible operating expenses to customers. As a result, operating margin from this business is primarily driven by the amount of capital invested and is predominantly not sensitive to fluctuations in operating expenses or actual throughput.

  • Operational excellence: 99% reliable in 2015
  • Diverse connectivity to various industry hubs for crude oil and condensate
  • Superior relationships with aboriginal communities, key stakeholders and producers
  • Proven track record of reliable and safe transportation services 

880,000 barrels per day of contracted capacity with 10-25 year contract life

The contracts underpinning our Oil Sands & Heavy Oil assets are long-life
and provide flow through of eligible operating expenses:

Pipeline System Syncrude Horizon Cheecham Nipisi & Mitsue
Contracted Capacity (bpd) 389,000 250,000(1) 136,000 127,000
Contract Type Cost-of-Service Fixed Return Fixed Return Fee-for-service
Term 25+ years 25+ years 25+ years 10+ years
Shippers Syncrude Partnership:
Suncor 54%
Imperial Oil 25%
Sinopec 9%
Nexen 7%
Mocal 5%
CNRL Conoco
Total
CNOOC
CNRL
Cenovus
PMLP
(1) Denotes capacity with the addition of pump stations, which were placed into service in mid-2016.

Midstream

Pembina offers customers a comprehensive suite of midstream products and services through its Midstream business.

Pembina offers customers a comprehensive suite of midstream products and services 

Crude Oil midstream

Crude oil midstream targets oil and diluent-related development opportunities at key sites across Pembina's network and comprises 17 truck terminals (including three capable of emulsion treatment and water disposal), and terminalling at downstream hub locations at Pembina's Nexus Terminal ("PNT"), including: storage and terminal connectivity. PNT includes: 21 inbound pipeline connections; 13 outbound pipeline connections; approximately 1.2 million bpd of crude oil and condensate supply connected to the terminal; and 900,000 barrels of surface storage in and around the Edmonton and Fort Saskatchewan, Alberta areas. 

  • Revenue generated from multiple service offerings
  • Interconnectivity increases options for customers
  • Access to five diluent streams through PNT and growing
  • Increasing fee-for-service revenue through development of storage, full-service terminals and other services
  • Truck and full-service terminals aggregate supply for Pembina's conventional pipelines
  • Upside opportunities in various market conditions

PNT includes 21 inbound pipeline connections and 13 outbound pipeline connections.
 

NGL midstream

Includes two NGL operating systems – Redwater West and Empress East.

 

The Redwater West NGL system ("Redwater West") includes the 750 MMcf/d (322.5 MMcf/d net to Pembina) Younger extraction and fractionation facility in B.C.; a 73 mbpd NGL fractionator (RFS), a 73 mbpd 'twin' of RFS (RFS II) and 7.8 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 proprietary and customer needs for importing and exporting NGL products. 
  

The Empress East NGL system ("Empress East") includes 2.1 bcf/d capacity in the straddle plants at Empress, Alberta; 20 mbpd of fractionation capacity and 1.1 mmbbls of cavern storage in Sarnia, Ontario; and ownership of 5.3 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 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 further fractionation, distribution and sale. 
 

Pembina is growing its fractionation capacity at Redwater, Alberta. Visit our Projects page to learn about our third fractionator, RFS III.

The financial performance of NGL midstream can be affected by the seasonal demand for propane. Propane inventory generally builds over the second and third quarters of the year and is sold in the fourth quarter and the first quarter of the following year during the winter heating season. Condensate, butane and ethane are generally sold consistently throughout the year.