Pembina Pipeline#Operations

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.{{cite web|url=http://www.ab-conservation.com/go/tasks/sites/default/assets/File/pdfs/07Media/01InTheNews/Oilsands_Review_May_2008_-_A_Blossoming_Counterbalance.pdf|title=Oilsands Review|date=May 2008|access-date=2011-01-06|archive-url=https://web.archive.org/web/20110707072644/http://www.ab-conservation.com/go/tasks/sites/default/assets/File/pdfs/07Media/01InTheNews/Oilsands_Review_May_2008_-_A_Blossoming_Counterbalance.pdf|archive-date=2011-07-07|url-status=dead}}

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|date=April 2024}} 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.{{cite book|url=https://books.google.com/books?id=RDiASPnRpCIC&q=Federated+Pipe+Lines+pembina+2000&pg=PA241|title=Cases in business ethics page 238|year=2006|isbn=9781412909242|last1=Sharp|first1=David J.}}

In 2001, Pembina sold a salt cavern in Hardisty to Canadian Crude Separators Inc., and acquired 100 percent 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.{{cite web|url=http://www.lexpert.ca/deal.php?id=162|title=Pembina Pipeline Agrees to Purchase Alberta Oil Sands Pipeline|date=2001-02-01|access-date=2018-01-06|archive-url=https://web.archive.org/web/20120314055600/http://www.lexpert.ca/deal.php?id=162|archive-date=2012-03-14|url-status=dead}}

On June 24, 2003, Pembina bought 50 percent 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.{{cite news|url=https://www.cbc.ca/news/business/pembina-fund-to-buy-half-of-ethylene-storage-facility-1.410756|title=Pembina fund to buy half of ethylene storage facility|date=2003-05-30 | work=CBC News}}

On June 2, 2009, Pembina acquired the Cutbank Complex from a Talisman Energy subsidiary for $300 million in cash (provided by a credit facility).{{Cite web |date=April 29, 2009 |title=Pembina buys Talisman gas complex for C$300 mln |website=Reuters |url=https://www.reuters.com/article/idUSN29434831/ |access-date=April 17, 2024}}

In 2012, Pembina purchased Provident Energy, a Canadian company, for $3.1 billion in stock.{{cite web|url=https://www.bloomberg.com/news/2012-01-16/pembina-pipeline-buys-canada-s-provident-energy-with-shares.html/|title=Pembina Pipeline Buys Canada's Provident Energy for $3.1 Billion in Stock|website=Bloomberg News |date=2012-01-16}} In 2017, it purchased rival energy infrastructure corporation Veresen, for $9.7 billion.{{Cite news|url=http://www.cbc.ca/news/canada/calgary/pembina-veresen-pipeline-takeover-billions-1.4093454|title=Pembina Pipeline offers $9.7B for friendly takeover of competitor Veresen {{!}} CBC News|work=CBC|access-date=2018-02-20|language=en-US}} 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.{{cite news |url=https://business.financialpost.com/commodities/energy/pembina-to-buy-kinder-morgan-canada-part-of-cochin-pipeline-for-4-35-billion|title=Pembina to buy Kinder Morgan Canada, U.S. portion of Cochin pipeline for $4.35 billion |newspaper=Financial Post |date=August 21, 2019 |first=Kevin |last=Orland |access-date=January 26, 2020|language=en-US}}

In 2024, Pembina purchased the remaining 50% of Alliance Pipeline from Enbridge along with an additional 42.7% of the Aux Sable gas processing facility.{{cite web | url=https://www.pembina.com/media-centre/news/details/7a72147a-9fcd-4ddc-a631-b69788ea7d11 | title=Pembina Pipeline Corporation Announces Closing of Acquisition of Enbridge's Interest in Alliance/Aux Sable and Raises 2024 Guidance }}

File:This Is Oil Country ... ;-) (11342951765).jpg

Operations are segmented into three main areas, two of which are distinguished by the type of oil they transport (conventional, oil sands & heavy oil infrastructure), and the other primarily deals with services related to storage/logistics (terminals, hubs, and midstreams) as well as marketing.{{cite web |title=Our Operations |url=http://www.pembina.com/about-us/our-operations/ |publisher=Pembina Pipeline Corporation |accessdate=9 September 2019}}

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.

• Alberta System wholly owns and runs 3 systems (all in operation since the 1950s) the largest of which is the Peace System (2009) and owns 50% of another, the Glen System (shared with Keyera Energy) and has a 10% interest in the Wabasca Oil Field System. Equal Energy Ltd is one of many minor producers that use the peace pipeline. Equal's 16 wells near Grand Prairie, Alberta deliver oil to the system.{{cite web|url=http://www.equalenergy.ca/index.php?page=alberta|title=Alberta-Equal Energy Ltd.|accessdate=2011-01-06}}
• BC System, 100% owned{{By whom|date=April 2024}}, has been in operation since 1960, and encompasses 3 storing facilities. The crude oil pipelines run in northeastern BC and connect Taylor to Kamloops. The total capacity is half of the smallest Alberta pipeline system (80,000 b/d in May 2009).{{cite web|url=http://docs.google.com/viewer?a=v&q=cache:TlFAqDsTEjoJ:www.dbrs.com/research/228689/pembina-pipeline-income-fund/income-fund-report.pdf+pembina+Pipeline+Corp+acquires+Alberta+Oil+Sands+Pipeline+from+EnCana+2001&hl=en&gl=ca&pid=bl&srcid=ADGEESiMbH9Vq_v8il_FGW3_Ui38d-0Geki32gRoqPf9MmtCA-vvF63z3ii0J5jxbRX-yDfYCyiRmzMZHVTly36wqsOUV34NNKcij8u6-1QriYz3EAxpv2rSoX_HjZjZIUC2XBizWmVz&sig=AHIEtbQ91K0sH78EHTTfDUSjXiNmEKELJg|title=Pembina Stability, Pipelines Midstream and Proposed Projects page 9 of 13|date=2009-05-13}}

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.

• Horizon serves Canadian Natural Resources at their most important synthetic oil-producing area (For the Horizon project, the contract is for 25 years).

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.

• Cutbank is made up of 3 gas plants (Cutbank, Musreau, Kakwa River), 9 compressor stations and a 300 km long system that gathers and processes natural gas liquids. Kakwa is 50% owned by Pembina but operated by another company.
• Ethylene Storage 50% - is an underground operation, the contract runs until 2023 and is operated by Dow Chemicals. Dow Chemicals along with Nova Chemicals Corp (the company from which Pembina bought its interest in 2003) are the biggest customers.

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