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Company type | Public |
---|---|
TSX: PPL NYSE: PBA S&P/TSX 60 component | |
Industry | Petroleum industry Pipeline transport Storage |
Founded | September 24, 1954 |
Headquarters | , |
Key people | Scott Burrows President & CEO Henry W. SykesChairman |
Products | Ethylene and Oil Storage Natural gas |
Revenue | C$6,202 mil 202014% [1] |
C$597 mil 2018 20% [1] | |
C$1,278 mil 201845% [1] | |
Total assets | C$26,664 mil (Dec'18) [1] 4% |
Total equity | C$14,404 mil (Dec'18) [1] 4% |
Number of employees | 1260 (2016) [2] |
Divisions | Pembina Marketing Ltd Syncrude pipeline Horizon Pipeline |
Website | www |
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. [2] The company's total assets nearly doubled in 2017. [1]
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).[ citation needed ] 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.
Oil sands, tar sands, crude bitumen, or bituminous sands, are a type of unconventional petroleum deposit. Oil sands are either loose sands or partially consolidated sandstone containing a naturally occurring mixture of sand, clay, and water, soaked with bitumen, a dense and extremely viscous form of petroleum.
The Athabasca oil sands, also known as the Athabasca tar sands, are large deposits of bitumen, a heavy and viscous form of petroleum, located in northeastern Alberta, Canada. These reserves are one of the largest sources of unconventional oil in the world, making Canada a significant player in the global energy market.
Enbridge Inc. is a Canadian multinational pipeline and energy company headquartered in Calgary, Alberta, Canada. Enbridge owns and operates pipelines throughout Canada and the United States, transporting crude oil, natural gas, and natural gas liquids, and also generates renewable energy. Enbridge's pipeline system is the longest in North America and the largest oil export pipeline network in the world. Its crude oil system consists of 28,661 kilometres of pipelines. Its 38,300 kilometre natural gas pipeline system connects multiple Canadian provinces, several US states, and the Gulf of Mexico. The company was formed by Imperial Oil in 1949 as the Interprovincial Pipe Line Company Limited to transport Alberta oil to refineries. Over time, it has grown through acquisition of other existing pipeline companies and the expansion of their projects.
TC Energy Corporation is a major North American energy company, based in the TC Energy Tower building in Calgary, Alberta, Canada, that develops and operates energy infrastructure in Canada, the United States, and Mexico. The company operates three core businesses: Natural Gas Pipelines, Liquids Pipelines and Energy.
Syncrude Canada Ltd. is one of the world's largest producers of synthetic crude oil from oil sands and the largest single source producer in Canada. It is located just outside Fort McMurray in the Athabasca Oil Sands, and has a nameplate capacity of 350,000 barrels per day (56,000 m3/d) of oil, equivalent to about 13% of Canada's consumption. It has approximately 5.1 billion barrels (810,000,000 m3) of proven and probable reserves situated on 8 leases over 3 contiguous sites. Including fully realized prospective reserves, current production capacity could be sustained for well over 90 years.
Plains All American Pipeline, L.P. is a master limited partnership engaged in pipeline transport, marketing, and storage of liquefied petroleum gas and petroleum in the United States and Canada. Plains owns interests in 18,370 miles (29,560 km) of pipelines, storage capacity for about 75 million barrels of crude oil, 28 million barrels of NGLs, 68 billion cubic feet of natural gas, and 5 natural gas processing plants. The company is headquartered in the Allen Center in Downtown Houston, Texas. Plains is a publicly traded Master limited partnership. PAA owns an extensive network of pipeline transportation, terminalling, storage and gathering assets in key crude oil and NGL producing basins and transportation corridors at major market hubs in the United States and Canada.
Petroleum production in Canada is a major industry which is important to the overall economy of North America. Canada has the third largest oil reserves in the world and is the world's fourth largest oil producer and fourth largest oil exporter. In 2019 it produced an average of 750,000 cubic metres per day (4.7 Mbbl/d) of crude oil and equivalent. Of that amount, 64% was upgraded from unconventional oil sands, and the remainder light crude oil, heavy crude oil and natural-gas condensate. Most of the Canadian petroleum production is exported, approximately 600,000 cubic metres per day (3.8 Mbbl/d) in 2019, with 98% of the exports going to the United States. Canada is by far the largest single source of oil imports to the United States, providing 43% of US crude oil imports in 2015.
Canadian Oil Sands Limited was a Canadian company that generates income from its oil sands investment in the Syncrude Joint Venture. Syncrude operated an oil sands facility and produced crude oil through the mining of oil sands from ore deposits in the Athabasca region of northern Alberta, Canada.
Dilbit is a bitumen diluted with one or more lighter petroleum products, typically natural-gas condensates such as naphtha. Diluting bitumen makes it much easier to transport, for example in pipelines. Per the Alberta Oil Sands Bitumen Valuation Methodology, "Dilbit Blends" means "Blends made from heavy crudes and/or bitumens and a diluent, usually natural-gas condensate, for the purpose of meeting pipeline viscosity and density specifications, where the density of the diluent included in the blend is less than 800 kg/m3." If the diluent density is greater than or equal to 800 kg/m3, the diluent is typically synthetic crude and accordingly the blend is called synbit.
Canada's oil sands and heavy oil resources are among the world's great petroleum deposits. They include the vast oil sands of northern Alberta, and the heavy oil reservoirs that surround the small city of Lloydminster, which sits on the border between Alberta and Saskatchewan. The extent of these resources is well known, but better technologies to produce oil from them are still being developed.
Canada's natural gas liquids industry dates back to the discovery of wet natural gas at Turner Valley, Alberta in 1914. The gas was less important than the natural gasoline - "skunk gas" it was called, because of its distinctive odour - that early producers extracted from it. That natural gas liquid (NGL) could be poured directly into an automobile's fuel tank.
Although there are numerous oil companies operating in Canada, as of 2009, the majority of production, refining and marketing was done by fewer than 20 of them. According to the 2013 edition of Forbes Global 2000, canoils.com and any other list that emphasizes market capitalization and revenue when sizing up companies, as of March 31, 2014 these are the largest Canada-based oil and gas companies.
Inter Pipeline Ltd. is a multinational petroleum transportation and infrastructure limited partnership that is ranked among North America's leading natural gas and NGL's extraction businesses. It is one of Alberta's top 100 companies in terms of profit (85) and assets (94).
Canadian Natural Resources Limited, or CNRL or Canadian Natural is a senior Canadian oil and natural gas company that operates primarily in the Western Canadian provinces of British Columbia, Alberta, Saskatchewan, and Manitoba, with offshore operations in the United Kingdom sector of the North Sea, and offshore Côte d'Ivoire and Gabon. The company, which is headquartered in Calgary, Alberta, has the largest undeveloped base in the Western Canadian Sedimentary Basin. It is the largest independent producer of natural gas in Western Canada and the largest producer of heavy crude oil in Canada.
Western Canadian Select (WCS) is a heavy sour blend of crude oil that is one of North America's largest heavy crude oil streams and, historically, its cheapest. It was established in December 2004 as a new heavy oil stream by EnCana, Canadian Natural Resources, Petro-Canada and Talisman Energy. It is composed mostly of bitumen blended with sweet synthetic and condensate diluents and 21 existing streams of both conventional and unconventional Alberta heavy crude oils at the large Husky Midstream General Partnership terminal in Hardisty, Alberta. Western Canadian Select—the benchmark for heavy, acidic crudes—is one of many petroleum products from the Western Canadian Sedimentary Basin oil sands. Calgary-based Husky Energy, now a subsidiary of Cenovus, had joined the initial four founders in 2015.
Oil sands tailings ponds are engineered dam and dyke systems used to capture oil sand tailings. Oil sand tailings contain a mixture of salts, suspended solids and other dissolvable chemical compounds such as acids, benzene, hydrocarbons residual bitumen, fine silts and water. Large volumes of tailings are a byproduct of bitumen extraction from the oil sands and managing these tailings is one of the most difficult environmental challenges facing the oil sands industry. An October 2021 Alberta Energy Regulator (AER) report said that in 2020 the tailings ponds increased by another 90 million cubic meters and contained 1.36 billion cubic metres of fluids.
Pipelines in Canada are important components of energy infrastructure in Canada as the majority of natural gas and oil deposits are located in landlocked Alberta and need to be transported to ports or terminals to access larger markets.
The Canadian province of Alberta faces a number of environmental issues related to natural resource extraction—including oil and gas industry with its oil sands—endangered species, melting glaciers in banff, floods and droughts, wildfires, and global climate change. While the oil and gas industries generates substantial economic wealth, the Athabasca oil sands, which are situated almost entirely in Alberta, are the "fourth most carbon intensive on the planet behind Algeria, Venezuela and Cameroon" according to an August 8, 2018 article in the American Association for the Advancement of Science's journal Science. This article details some of the environmental issues including past ecological disasters in Alberta and describes some of the efforts at the municipal, provincial and federal level to mitigate the risks and impacts.
The Alberta Carbon Trunk Line (ACTL) is a CO2 pipeline owned and operated Wolf Midstream, which is 240 kilometres (150 mi) in length and part of a $CDN1.2 billion system that captures carbon dioxide from industrial emitters in the Alberta's Industrial Heartland and transports it to "central and southern Alberta for secure storage" in "aging reservoirs", and enhanced oil recovery (EOR) projects. The pipeline, upstream carbon capture infrastructure and downstream EOR project, which is owned and operated by Enhance Energy, came online on June 2, 2020 and are part of the ACTL System, which is the largest carbon capture and storage (CCS) system" in Alberta, Canada.
Pathways Alliance or Oil Sands Pathways Alliance is a consortium established on June 15, 2022 of Canada's largest oil sands producers—Canadian Natural Resources, Cenovus Energy, Imperial Oil, MEG Energy, Suncor Energy and ConocoPhillips—with the goal of achieving "net-zero by 2050". Together these companies represent about 95% of "Canada’s oil sands production." Pathways' president is Kendall Dilling. According to Pathways, the alliance's decarbonization work has amounted to $1.8 billion from 2021 to November 2023. Their major proposed project is a potential $16.5 billion carbon capture and storage network that would be built in northern Alberta. which initially included a March 2023 request that the federal government cover 75% of the cost.