Pembina Pipeline Corporation (Pembina) provides energy transportation and midstream service.
Pembina owns an extensive network of strategically located assets, including hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and an export terminals business. Through the company’s integrated value chain, the company seeks to provide safe and reliable energy solutions that connect producers and con...
Pembina Pipeline Corporation (Pembina) provides energy transportation and midstream service.
Pembina owns an extensive network of strategically located assets, including hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and an export terminals business. Through the company’s integrated value chain, the company seeks to provide safe and reliable energy solutions that connect producers and consumers across the world, support a more sustainable future, and benefit its customers, investors, employees, and communities.
Strategy
The company’s strategies are to strengthen and grow its existing franchise; prioritize lighter commodities as it continues to invest in new infrastructure and expand its portfolio to include new businesses associated with lower-carbon commodities; continue the company’s focus on supporting the transformation of Western Canadian Sedimentary Basin commodities into higher-margin products and enabling more coastal egress; and deliver excellence for the company’s key stakeholder groups.
Division
Pembina is structured into three divisions: Pipelines Division, Facilities Division, and Marketing & New Ventures Division.
Pipelines Division
The Pipelines Division provides customers with pipeline transportation, terminalling, and storage in key market hubs in Canada and the United States for crude oil, condensate, natural gas liquids, and natural gas. Through Pembina's wholly owned and joint venture assets, the Pipelines Division manages pipeline transportation capacity of approximately 3.0 mmboe/d and above-ground storage capacity of approximately 10 mmbbls within its conventional, oil sands and heavy oil, and transmission assets. The conventional assets include strategically located pipelines and terminalling hubs that gather and transport light and medium crude oil, condensate, and natural gas liquids from western Alberta and northeast British Columbia to downstream pipelines and processing facilities in the Edmonton, Alberta area. The oil sands and heavy oil assets transport heavy and synthetic crude oil produced within Alberta to the Edmonton, Alberta area and offer associated storage and terminalling services. The transmission assets transport natural gas, ethane, and condensate throughout Canada and the United States on long-haul pipelines linking various key market hubs. In addition, the Pipelines Division assets provide linkages to Pembina's Facilities Division assets across North America, enabling flexibility and optionality in its customer service offerings. Together, these assets supply products from hydrocarbon-producing regions to refineries, fractionators, and market hubs in Alberta, British Columbia, and Illinois, as well as other regions throughout North America.
Assets
Pembina's assets within the Pipelines Division include conventional assets, oil sands and heavy oil assets, and transmission assets.
Pembina's primary conventional assets include the following:
The Peace Pipeline system (‘Peace Pipeline’), which includes approximately 4,550 km of pipelines, including gathering laterals, that transport ethane mix (C2+), propane mix (C3+), crude oil, and condensate from northwestern Alberta to Edmonton, Alberta, and to Fort Saskatchewan, Alberta.
The Phase VIII Peace Pipeline expansion (‘Phase VIII Expansion’) was brought into service during the second quarter of 2024. In 2013, Pembina announced the Peace Pipeline Phase III expansion from Fox Creek, Alberta, to Namao, Alberta, which was completed in 2017, followed by several upstream expansions (Phases IV, V, VI, VII, VIII, and IX). Executed over more than 10 years and totaling more than $4 billion, the scaled intra-Alberta expansion of the Peace Pipeline system was driven by growing customer demand for transportation services to support development in the WCSB, including the Montney, Duvernay, and other resource plays. With the completion of the Phase VIII Expansion, Pembina has largely completed its objective to achieve unequaled segregated liquids transportation service for ethane-plus, propane-plus, crude oil, and condensate across multiple pipeline systems between Gordondale, Alberta, and the Edmonton, Alberta area.
The Northern Pipeline system (‘Northern Pipeline’), which includes approximately 675 km of pipelines, including gathering laterals, that transport NGL from Belloy, Alberta, to Fort Saskatchewan, Alberta.
The total capacity of the Peace Pipeline and Northern Pipeline is approximately 1.1 mmbpd. As well, Pembina continues to have the ability to add approximately 200 mbpd of capacity to its market delivery pipelines from Fox Creek, Alberta, to Namao, Alberta, through the relatively low-cost addition of pump stations on these mainlines.
The Drayton Valley Pipeline system (‘Drayton Valley Pipeline’), which includes approximately 1,100 km of pipelines, including gathering laterals, with a capacity of 145 mbpd, that transport crude oil and condensate from the area southwest of Edmonton, Alberta, to Edmonton, Alberta.
The NEBC Pipeline system (‘NEBC Pipeline’), which includes approximately 390 km of pipelines, including gathering laterals, that transport NGL, crude oil, and condensate from northeastern British Columbia to Taylor, British Columbia.
Pembina continues to experience growing customer demand in northeastern British Columbia and recently completed an infrastructure expansion (‘NEBC MPS Expansion’) to fulfill customer demand from Montney producers in northeastern British Columbia for the transportation and fractionation of liquids. The NEBC MPS Expansion includes terminal upgrades, additional operational storage, and a new mid-point pump station, which support approximately 40 mbpd of incremental capacity on the NEBC Pipeline. The NEBC MPS Expansion was completed on time and under budget in the fourth quarter of 2024.
Additionally, Pembina continues to evaluate further expansions to support volume growth in the Montney formation that spans northeastern British Columbia and northwestern Alberta, including new pipelines and terminal upgrades on the NEBC Pipeline and downstream systems between Taylor, British Columbia, and Gordondale, Alberta. In 2024, Pouce Coupé Pipe Line Ltd., a subsidiary of Pembina, filed its project application with the CER in respect of the Taylor to Gordondale Project, which has entered the assessment phase of the CER's regulatory process.
The Liquids Gathering Pipeline system (‘LGS’), which includes approximately 425 km of pipelines, including gathering laterals, that transport NGL from northeastern British Columbia to Gordondale, Alberta.
The Brazeau NGL Pipeline system (‘Brazeau Pipeline’), which includes approximately 500 km of pipelines, including gathering laterals, with a capacity of 61 mbpd, that transport NGL from natural gas processing plants southwest of Edmonton, Alberta, to Fort Saskatchewan, Alberta.
The Western Pipeline system (‘Western Pipeline’), which includes an approximately 400 km pipeline that transports crude oil from Taylor, British Columbia, to Prince George, British Columbia.
The Canadian Diluent Hub (‘CDH’), which includes approximately 500 mbbls of above-ground storage and provides direct connectivity for domestic and U.S. condensate volumes to the oil sands via downstream third-party pipelines.
The Edmonton North Terminal (‘ENT’), which includes approximately 900 mbbls of above-ground storage with access to crude oil and condensate supply transported on Pembina's operated pipelines and products from various third-party operated pipelines.
13 truck terminals, which provide pipeline and market access for crude oil, condensate, and propane mix (C3+) production that is not pipeline connected.
Pembina's primary oil sands and heavy oil assets include the following:
The Syncrude Pipeline system (‘Syncrude Pipeline’), which includes approximately 450 km of pipelines, with a capacity of 389 mbpd. Pembina is the sole transporter of synthetic crude oil for the Syncrude Project to delivery points near Edmonton, Alberta.
The Horizon Pipeline system (‘Horizon Pipeline’), which includes approximately 525 km of pipelines, with a capacity of 335 mbpd. Pembina transports synthetic crude oil for the Horizon Project to delivery points near Edmonton, Alberta.
The Nipisi Pipeline system (‘Nipisi Pipeline’), which includes approximately 350 km of pipelines, with a capacity of approximately 100 mbpd, that transports heavy oil from the Slave Lake area of Alberta to Pembina's North 40 Terminal and other downstream third-party terminals.
The terminals at Edmonton, Alberta (the ‘Edmonton Terminals’), which consist of 34 merchant tanks with a capacity of approximately 11.5 mmbbls (9.0 mmbbls net to Pembina) of storage. The terminals are connected to a highly diverse suite of inbound pipelines and outbound connections, resulting in the most robust connectivity in the Edmonton, Alberta area. The Edmonton Terminals include the following:
The Edmonton South Terminal (‘Edmonton South Terminal’) is a merchant tank terminal located in Sherwood Park, Alberta. The assets in this facility consist of 13 storage tanks with a total storage capacity of approximately 4.5 mmbbls. The 13 tanks are currently leased from Trans Mountain Corporation under a long-term arrangement and are subleased to third parties.
The North 40 Terminal (‘North 40 Terminal’) is a merchant tank terminal located in Sherwood Park, Alberta. The assets in this facility consist of nine storage tanks with a total storage capacity of approximately 2.15 mmbbls.
The Base Line Terminal (‘Base Line Terminal’) is a joint venture asset owned by Pembina (50 percent) and Keyera (50 percent) and is operated by Pembina. It is a merchant crude oil storage terminal located on leased land at the Keyera, Alberta EnviroFuels facility in Sherwood Park, Alberta. The assets in this facility consist of 12 storage tanks with a total storage capacity of 4.8 mmbbls (2.4 mmbbls net to Pembina).
Pembina's primary transmission assets include the following:
The Alliance Pipeline system (‘Alliance Pipeline’) is held through Alliance Canada and Alliance U.S.
The Alliance Pipeline delivers an average of 1.7 bcf/d of rich gas and consists of an approximately 3,850 km integrated Canadian and U.S. natural gas transmission pipeline, from the WCSB and the Williston Basin in North Dakota to natural gas markets in the Chicago, Illinois area. The Alliance Pipeline connects to Aux Sable U.S.'s Channahon Facility in Channahon, Illinois, which extracts NGL from the natural gas transported before delivery to downstream pipelines.
The Canadian portion of the Alliance Pipeline consists of a 1,561 km natural gas mainline pipeline and 732 km of related lateral pipelines connected to natural gas receipt locations, primarily at gas processing facilities in northwestern Alberta and northeastern British Columbia, and related infrastructure. Alliance Canada owns the Canadian portion of the Alliance Pipeline.
The U.S. portion of the Alliance Pipeline consists of 1,556 km of infrastructure, including the 129 km Tioga lateral in North Dakota. Alliance U.S., an affiliate of Alliance Canada, owns the U.S. portion of the Alliance Pipeline system.
The Cochin Pipeline system (‘Cochin Pipeline’) includes an approximately 2,500 km pipeline, which spans from Kankakee County, Illinois, to Fort Saskatchewan, Alberta. The Cochin Pipeline transports light condensate primarily to be used as diluent to facilitate bitumen transportation. The Cochin Pipeline traverses two provinces in Canada and four states in the U.S. and has an annual average capacity of 110 mbpd.
The Vantage Pipeline system (‘Vantage Pipeline’) includes an approximately 800 km, 69 mbpd pipeline and gathering laterals that link ethane supply from the Bakken resource play in North Dakota to the petrochemical market in Alberta. Volumes originate from two gas plants in Tioga, North Dakota, extending northwest through Saskatchewan and terminating near Empress, Alberta, where it is connected to the AEGS.
The Alberta Ethane Gathering System (‘AEGS’) transports ethane within Alberta from various ethane extraction plants to major petrochemical complexes located near Joffre, Alberta, and Fort Saskatchewan, Alberta. At 1,120 km in total length, and an aggregate design capacity of approximately 330 mbpd, the AEGS consists of an east leg, west leg, and a bi-directional north leg, which together form an integrated system that includes interconnections with underground storage sites in Fort Saskatchewan, Alberta, and Burstall, Saskatchewan.
NRGreen Power Limited Partnership (‘NRGreen’), whose assets include four waste heat recovery units with the capacity to generate 20 MW of electricity along the Alliance Pipeline in Saskatchewan, and a 14 MW waste recovery unit at Alliance Pipeline's Windfall compressor station near Whitecourt, Alberta.
Customers and Commercial Structure
There are approximately 70 shippers on the conventional assets owned and operated by Pembina, including independent producers and multinational oil and gas companies. The primary markets connected to Pembina's conventional assets include: the Enbridge pipeline systems for multiple products; Pembina's North 40 Terminal and the Trans Mountain Pipeline system near Edmonton, Alberta; the Strathcona refinery in the Edmonton, Alberta area; Pembina's CDH near Fort Saskatchewan, Alberta; connected oil sands diluent pipelines; a refinery located in Prince George, British Columbia; and all major NGL fractionators near Fort Saskatchewan, Alberta.
Pembina's conventional terminals are configured to access, and provide services for, the common grades of Canadian crude oil, as well as access domestic and imported condensate streams. The terminals provide essential services for Pembina's customers with outbound delivery flexibility and above-ground storage.
At Pembina's truck terminals, the customer base generally comprises the same producers who seek to transport various products, including condensate, on Pembina's conventional and oil sands and heavy oil systems. Truck terminals are particularly attractive to producers who are unable to justify pipeline/oil battery connections due to relatively low daily production or are producing in advance of being pipeline connected.
The contracts related to conventional assets are fee-for-service in nature, but vary in their structure as follows:
Firm contracts: Pembina focuses on securing base volumes on its Peace Pipeline and Northern Pipeline systems under a firm contract structure, where a fee-for-service toll, which includes flow-through operating costs for power and extraordinary events, is set under the contract, and customers receive a firm amount of pipeline capacity for the transportation of their products. Under firm contracts, customers also agree to a minimum revenue or volume commitment (‘take-or-pay’).
Cost-of-service contracts: Pembina's conventional pipelines in British Columbia and its cross-border pipelines are primarily operated under a cost-of-service methodology, whereby Pembina flows through the actual operating costs of the systems to shippers while recovering a return on invested capital. Under cost-of-service contracts, Pembina is obligated to hold a fixed capacity for the shippers, and the shippers have an obligation to pay their share of the rate base and operating costs of the system whether they use all of the fixed capacity or not.
Non-firm or interruptible contracts: Capacity on conventional assets that has not been secured under the firm contracts or cost-of-service contracts structures described above is contracted under fee-for-service, month-to-month contracts on an interruptible basis. These contracts do not require Pembina to guarantee a specified amount of dedicated capacity for a customer. Rather, under a non-firm or interruptible contract structure, customers nominate volumes on a monthly basis, and tariffs are set periodically by receipt point.
The majority of crude oil, condensate, and NGL products transported on the Peace Pipeline and Northern Pipeline systems are contracted under long-term, firm, take-or-pay contracts.
Services provided on other conventional assets and systems, such as the Drayton Valley Pipeline, LGS, Brazeau Pipeline, CDH, and ENT are generally under interruptible contracts.
Producer activity focused on NGL development continues in the Deep Basin Cretaceous, Montney, and Duvernay resource areas served by Pembina's Peace Pipeline and Northern Pipeline systems. Pembina has successfully been able to leverage its existing assets to provide incremental capacity in these areas, as evidenced by Pembina's numerous pipeline expansion projects.
The major shippers on Pembina's oil sands and heavy oil assets are primarily large upstream exploration and production companies.
Pembina's oil sands and heavy oil assets provide services predominantly under long-term, extendible contracts, which allow Pembina to pass along eligible operating expenses to customers. As a result, the financial results of these assets are primarily driven by the amount of capital invested, and they are not significantly impacted by fluctuations in certain operating expenses, physical throughput, or commodity prices, with the exception of the Nipisi Pipeline, which can benefit from increased physical throughput.
Pembina's Syncrude Pipeline is fully contracted under a cost-of-service, extendible, long-term agreement.
The Horizon Pipeline is fully contracted to a single customer and is operated under the terms of a long-term fixed return, extendible contract.
The capacity on the Nipisi Pipeline is contracted under a combination of cost-of-service and firm service long-term contracts with minimum take-or-pay commitments.
The Edmonton Terminals service customers consisting of a diverse mix of production, refining, marketing, and integrated companies. The Edmonton Terminals are primarily contracted under long-term and medium-term take-or-pay agreements.
As of December 31, 2024, Alliance Canada had 28 long-term firm shippers, and Alliance U.S. had 26 long-term firm shippers. Firm transportation contracts are take-or-pay in nature, and shippers are obligated to pay demand charges on contracted capacity in Canada and reservation charges on contracted capacity in the U.S. In addition, Alliance Canada sells seasonal firm and interruptible transportation service on a price-biddable basis.
The Cochin Pipeline has long-term contractual commitments with customers for an aggregate of 90 mbpd that commenced August 1, 2024.
Transportation service on the Vantage Pipeline is underpinned by long-term, fee-for-service contracts with take-or-pay provisions. Vantage Pipeline contracts are with one customer with petrochemical infrastructure in Alberta, with multiple receipt points along the Vantage Pipeline. Approximately 50 percent of the Vantage Pipeline's capacity is contracted on a take-or-pay basis, with additional volumes flowing on a fee-for-service basis.
The AEGS shipper community currently consists of either major ethane producers or consumers that have significant energy infrastructure and/or petrochemical investments in Alberta. AEGS is fully contracted, with nearly 100 percent of its capacity contracted under 20-year take-or-pay agreements.
Facilities Division
The Facilities Division includes infrastructure that provides Pembina's customers with natural gas, condensate, and NGL services. Through its wholly owned assets and its interest in PGI, Pembina's natural gas gathering and processing facilities are strategically positioned in active, liquids-rich areas of the WCSB and Williston Basin, and may be serviced by the company's other businesses. The company provides sweet and sour gas gathering, compression, condensate stabilization, and both shallow cut and deep cut gas processing services with a total capacity of approximately 6.7 bcf/d for its customers. Condensate and NGL extracted at virtually all Canadian-based facilities have access to transportation on Pembina's pipelines. In addition, all NGL transported along the Alliance Pipeline are extracted through the Channahon Facility at the terminus. The Facilities Division includes approximately 430 mbpd of NGL fractionation capacity, 21 mmbbls of cavern storage capacity, various oil batteries, associated pipeline, and rail terminalling facilities, and a liquefied propane export facility on Canada's West Coast. These facilities are accessible to Pembina's other strategically located assets and pipeline systems, providing customers with flexibility and optionality to access a comprehensive suite of services to enhance the value of their hydrocarbons. In addition, Pembina owns a bulk marine import/export terminal in Vancouver, British Columbia.
Assets
Pembina's assets within the Facilities Division include the gas services assets and the NGL services assets.
Pembina's primary gas services assets include the following:
Pembina's 60 percent operating interest in PGI, which has ownership interests in the following assets as noted below:
The Saturn Gas Plant (100 percent), Sunrise Gas Plant (100 percent), and Tower Gas Plant (100 percent) (collectively, the ‘Dawson Assets’), which have combined gross processing capacity of 1,100 MMcf/d (660 MMcf/d net to Pembina). These assets also include approximately 900 km of gas gathering lines and three liquids hubs.
The Cutbank Complex (the ‘Cutbank Complex’) located near Grande Prairie, Alberta, which includes four shallow cut sweet gas processing plants (the Cutbank Gas Plant (100 percent), Musreau I (89 percent) consisted of three trains, Musreau II/III (100 percent) consisted of two trains, and the Kakwa 1-35 Gas Plant (50 percent)), and one deep cut sweet gas processing plant (the Musreau Deep Cut (100 percent)). In total, the Cutbank Complex has 805 MMcf/d (449 MMcf/d net to Pembina) of sweet gas processing capacity, including 205 MMcf/d (123 MMcf/d net to Pembina) of sweet deep cut extraction capacity. The Cutbank Complex also includes approximately 350 km of gathering pipelines, nine field compression stations, and centralized condensate stabilization.
The Hythe Gas Plant (100 percent) and Steeprock Gas Plant (100 percent), which are located northwest of Grande Prairie, Alberta, with sweet and sour gas processing capacity of 641 MMcf/d (385 MMcf/d net to Pembina). The plants have approximately 350 km of associated gathering lines.
The Saturn Complex (the ‘Saturn Complex’), which is located near Hinton, Alberta, and includes the Saturn I (100 percent) and Saturn II (100 percent) facilities for a total of 435 MMcf/d (261 MMcf/d net to Pembina) of deep cut gas processing capacity, as well as approximately 25 km of gathering pipelines.
The Patterson Creek Plant (100 percent) (‘Patterson Creek’), which is a sweet gas processing facility located southeast of Grande Prairie, Alberta, with shallow cut NGL recovery. Patterson Creek has an operational capacity of 390 MMcf/d (234 MMcf/d net to Pembina), as well as approximately 500 km of gathering pipelines.
The Kaybob South 3 Processing Plant (97 percent) (the ‘K3 Plant’), which is located south of Fox Creek, Alberta, is a sour gas processing facility with shallow cut NGL recovery. The K3 Plant has an operational capacity of 375 MMcf/d (218 MMcf/d net to Pembina), as well as approximately 750 km of gathering pipelines. PGI is developing a 28 MW cogeneration facility at the K3 Plant (the ‘K3 Cogeneration Facility’), which is expected to reduce overall operating costs by providing power and heat to the gas processing facility, while reducing customers' exposure to power prices. The K3 Cogeneration Facility is expected to fully supply the K3 Plant's power requirements, with excess power sold to the grid at market rates. Further, the K3 Cogeneration Facility is expected to contribute to a reduction in annual emissions compliance costs at the K3 Plant through the utilization of the cogeneration waste heat and the low-emission power generated. The K3 Cogeneration Facility is expected to cost approximately $115 million ($70 million net to Pembina) and, subject to regulatory and environmental approvals, is expected to be in service in the first half of 2026.
The Duvernay Complex (the ‘Duvernay Complex’), which is located near Fox Creek, Alberta, currently includes three shallow cut sweet gas processing trains (Duvernay I (92 percent), Duvernay II (92 percent), and Duvernay III (92 percent)), the Duvernay Sour Treating Facilities, and the Duvernay Field Hub. In total, the Duvernay Complex has 330 MMcf/d (182 MMcf/d net to Pembina) of shallow cut sweet gas processing capacity, 60 mbpd of raw inlet condensate stabilization facilities, 15 mbpd of water handling facilities, a 150 MMcf/d sour gas sweetening system with 300 MMcf/d of amine regeneration capability, and up to one tonne of sulfur per day of acid incineration. Supporting infrastructure includes a 12 km sales gas pipeline and over 50 km of gas gathering and fuel gas pipelines.
The Resthaven Facility (78 percent) (the ‘Resthaven Facility’), which is located near Grande Cache, Alberta, includes 300 MMcf/d (141 MMcf/d net to Pembina) of raw-to-deep cut sweet gas processing capacity, as well as approximately 30 km of gathering pipelines.
The Kakwa River facility (100 percent), which has 200 MMcf/d (120 MMcf/d net to Pembina) of raw-to-deep cut sour gas processing capacity (the ‘Kakwa River Deep Cut Plant’) and 50 MMcf/d (30 MMcf/d net to Pembina) of shallow cut capacity (the ‘Kakwa River Shallow Cut Plant’).
The Kaybob South Amalgamated Plant (94 percent) (the ‘KA Plant’), which is a sour gas processing facility located southwest of Fox Creek, Alberta, with shallow cut NGL recovery. The KA Plant has an operational capacity of 220 MMcf/d (124 MMcf/d net to Pembina) and includes approximately 250 km of gathering pipelines.
The Wapiti Plant (100 percent) (the ‘Wapiti Plant’), which is a sour gas processing facility located southwest of Grande Prairie, Alberta, with shallow cut NGL recovery. The Wapiti Plant has an operational capacity of 200 MMcf/d (120 MMcf/d net to Pembina) and includes approximately 450 km of gathering pipelines. PGI is developing an expansion at the Wapiti Plant (the ‘Wapiti Expansion’) that will increase natural gas processing capacity at the Wapiti Plant by 115 MMcf/d (69 MMcf/d net to Pembina). The development of the Wapiti Expansion is driven by strong customer demand supported by growing Montney production and will be fully underpinned by long-term, take-or-pay contracts. The Wapiti Expansion, which consists of a new sales gas pipeline and other related infrastructure, is expected to cost approximately $230 million ($140 million net to Pembina) and, subject to regulatory and environmental approvals, is expected to be in service in the first half of 2026.
The Smoke Lake Plant (100 percent), which is a gas processing facility located near Fox Creek, Alberta, with a capacity of 60 MMcf/d (36 MMcf/d net to Pembina). The Smoke Lake Plant is not currently in operation. PGI will continue to pursue opportunities to re-contract this asset.
The 15-07 Kaybob Complex (50 percent) (the ‘Kaybob Complex’), which is located south of Fox Creek, Alberta, has an operational capacity of 165 MMcf/d (50 MMcf/d net to Pembina) of gas processing and condensate stabilization of 15 mbpd (5 mbpd net to Pembina). The Kaybob Complex is operated by Whitecap.
13 batteries, which collect and treat crude oil and condensate production from various wells and provide downstream market access through the Peace Pipeline.
The Younger NGL Extraction Facility (‘Younger’), which is a 640 MMcf/d (459 MMcf/d net to Pembina) extraction facility and approximately 10 mbpd, net to Pembina, fractionation facility in British Columbia that supplies specification NGL products to local markets, as well as NGL mix supply transported on the company's pipeline systems to the Fort Saskatchewan, Alberta area for fractionation and sale, and condensate to Pembina's CDH.
The Empress NGL Extraction Facility (‘Empress’), which consists of a 1,200 MMcf/d (1,065 MMcf/d net to Pembina) extraction facility located at Empress, Alberta, which includes 37 mbpd, net to Pembina, of ethane-plus fractionation, and 30 mbpd of propane-plus fractionation. At Empress, NGL mix is extracted from natural gas at straddle plants, and all of the extracted NGL is fractionated, with the ethane and condensate sold into western Canadian markets. The remaining propane and butane, at Pembina's option, is either distributed for sale into western Canadian and mid-western U.S. markets, or Pembina recombines the propane and butane and transports the mix to Sarnia, Ontario, for further re-fractionation, distribution, and sale into markets in eastern Canada and the eastern U.S. The Empress Co-generation Facility (the ‘Empress Co-generation Facility’) uses natural gas to generate up to 45 MW of electrical power, thereby reducing overall operating costs at Empress, and contributes to GHG emission reductions through the utilization of the co-generation waste heat and the low-emission power generated.
Burstall Ethane Storage (‘Burstall’), which consists of an ethane storage facility with a capacity of 1 mmbbls, located near Burstall, Saskatchewan.
Pembina's primary NGL services assets include the following:
The fractionation and storage facilities (‘Redwater Complex’), which include two 73 mbpd ethane-plus fractionators (being ‘RFS I’ and ‘RFS II’, respectively); a 55 mbpd propane-plus fractionator (‘RFS III’); and 12.1 mmbbls of cavern storage located in Redwater, Alberta. The Redwater Complex 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 Complex are Pembina's truck and rail terminals with unit train capability, which service Pembina's proprietary and customer needs for importing and exporting NGL products. In 2023, Pembina sanctioned construction of a new 55 mbpd propane-plus fractionator (‘RFS IV’) at the Redwater Complex. The project includes additional rail loading capacity at the Redwater Complex. RFS IV is expected to cost approximately $525 million and will leverage the design, engineering, and operating best practices of its existing facilities. RFS IV is expected to be in service in the first half of 2026. With the addition of RFS IV, the fractionation capacity at the Redwater Complex will total 256 mbpd. The Redwater Co-generation Facility uses natural gas to generate up to 45 MW of electrical power, thereby reducing overall operating costs at Redwater, and contributes to GHG emission reductions through the utilization of the co-generation waste heat and the low-emission power generated.
The East NGL System (‘East NGL System’), which includes:
Up to 20 mbpd of fractionation capacity and 1.2 mmbbls of cavern storage in Sarnia, Ontario;
Storage and terminalling assets/capacity at Kerrobert, Saskatchewan, and Superior, Wisconsin; and
6 mmbbls of hydrocarbon storage, truck and rail loading facilities at Corunna, Ontario.
The Prince Rupert Terminal (the ‘Prince Rupert Terminal’), a 20 mbpd propane export terminal located on Watson Island, British Columbia, on lands leased from a wholly owned subsidiary of the City of Prince Rupert. The Prince Rupert Terminal includes a rail terminal, moving propane from rail cars to pressurized storage spheres, and ultimately to 'handysize' vessels destined for international markets.
Vancouver Wharves (‘Vancouver Wharves’), located in North Vancouver, B.C., is a 125-acre bulk marine terminal facility that in 2024 transferred approximately 3.5 million tons of bulk cargo and 7 mmbbls of liquids predominantly to offshore export markets. Vancouver Wharves is operated under an operating lease and asset ownership agreement with the B.C. Railway Company and a corresponding water lot lease with Port Metro Vancouver. The terminal includes one million tons of bulk storage capacity, 450,000 barrels of distillate storage capacity, four berths, facilities that can house up to 325 rail cars, and connectivity to three Class 1 rail companies.
A 50 percent interest in Fort Corp, which has 27,500 metric tonnes of ethylene storage and 33,400 metric tonnes of ethane-plus NGL mix storage near Fort Saskatchewan, Alberta.
Aux Sable
Aux Sable (‘Aux Sable’) includes Aux Sable U.S. and Aux Sable Canada:
Aux Sable U.S. (‘Aux Sable U.S.’) consists of Aux Sable Liquids Products Inc., Aux Sable Liquid Products LP (‘Aux Sable U.S. LP’), and Aux Sable Midstream LLC. Aux Sable U.S. is wholly owned by Pembina. The primary assets of Aux Sable U.S. include:
The Channahon Facility (‘Channahon Facility’), located in Channahon, Illinois, about 80 km southwest of Chicago at the eastern terminus of the Alliance Pipeline. The Channahon Facility is capable of processing 2.1 bcf/d of natural gas and can produce approximately 131 mbpd of specification NGL products. All of the natural gas delivered via the Alliance Pipeline is processed at the Channahon Facility. The Channahon Facility includes storage and rail facilities, as well as NGL pipelines that connect the facility to various third-party terminals, refineries, and petrochemical plants. The scale and geographic location of the Channahon Facility provide producers located in western Canada and North Dakota with economic options for liquids-rich gas takeaway and access to the U.S. NGL markets, avoiding costly investments in field processing and transportation infrastructure.
The Palermo Conditioning Plant (‘Palermo Conditioning Plant’), located near Palermo, North Dakota, is an 80 MMcf/d plant, which receives gas from gathering systems servicing nearby Bakken shale oil and gas production areas and removes the condensate while leaving the majority of the natural gas liquids in the rich gas prior to shipping on the Alliance Pipeline via delivery on the Prairie Rose Pipeline.
The Prairie Rose Pipeline (‘Prairie Rose Pipeline’), a 120 MMcf/d pipeline connecting the Palermo Conditioning Plant to the Alliance Pipeline.
Aux Sable Canada (‘Aux Sable Canada’) consists of Aux Sable Canada LP and Aux Sable Canada Ltd. Aux Sable Canada is wholly owned by Pembina. The primary assets of Aux Sable Canada include:
The Heartland Offgas Plant (‘HOP’), a 20 MMcf/d extraction plant located in Fort Saskatchewan, Alberta. HOP produces valuable products, including hydrogen, ethane, and other natural gas liquids from a refinery offgas stream supplied from Shell's Scotford Complex. The products are returned to Shell via pipeline.
The Septimus Pipeline, which is located in northeastern British Columbia and transports sweet, liquids-rich gas from the Septimus and Wilder gas plants to the Alliance Pipeline, for downstream processing at Aux Sable U.S.'s Channahon Facility. The Septimus Pipeline is 100 percent owned by Aux Sable Canada and has a capacity of approximately 350 MMcf/d.
Customers and Commercial Structure
Pembina's gas services assets have approximately 80 customers, including independent producers, as well as multinational oil and gas companies. Pembina processes customers' natural gas at PGI's Cutbank Complex, Saturn Complex, Resthaven Facility, Duvernay Complex, Dawson Assets, Hythe Gas Plant, Steeprock Gas Plant, K3 Plant, KA Plant, Patterson Creek, and the Wapiti Plant. The processed natural gas is delivered to Enbridge's T-North system in British Columbia, NOVA Gas Transmission Ltd.'s pipeline system, the Alliance Pipeline system, and the Coastal GasLink Pipeline. The processed NGL is delivered to Pembina's Peace Pipeline and Northern Pipeline systems, Brazeau Pipeline, and NEBC Pipeline.
PGI's business is primarily supported by long-term contractual arrangements. In particular:
Duvernay I and the associated Duvernay Field Hub connecting the Tony Creek and Fox Creek areas in Alberta are subject to agreements with large and diversified investment-grade oil and gas producers and are supported by a combination of fee-for-service, fixed-return, and take-or-pay arrangements. The Duvernay II, Duvernay III, and Duvernay Sour Gas Treating Facilities are supported by 20-year contracts with a combination of fee-for-service, fixed-return, and take-or-pay arrangements.
The Dawson Assets are supported by fee-for-service agreements with the CRP and Ovintiv, whereby the CRP has committed to use the Dawson Assets on an exclusive basis for a 30-year term within an area of mutual interest.
The Hythe Gas Plant and Steeprock Gas Plant are supported by a cost-of-service agreement and take-or-pay arrangements for the majority of the available capacity of these facilities.
The Kakwa River Deep Cut Plant is fully contracted with take-or-pay arrangements.
Under transportation agreements with natural gas shippers on the Alliance Pipeline, Aux Sable U.S. LP has the right to extract NGL from all of the natural gas transported for the durations of the applicable agreements. Aux Sable has signed NGL value-sharing agreements with certain gas producers in Alberta, British Columbia, and North Dakota. Substantially all of the volumes processed at the Channahon Facility are not under third-party contracts and are used exclusively by Pembina's marketing business. In December 2023, Aux Sable U.S. LP entered into an exclusive NGL sale agreement with an NGL marketer, effective January 1, 2024, pursuant to which Aux Sable U.S. LP sells all of its NGL production from the Channahon Facility to such counterparty. In return, Aux Sable U.S. LP receives a percentage share of net margin generated from the counterparty's business relating to such NGL. Aux Sable's financial results are partially included in the Marketing & New Ventures Division, for cash flow derived from commodity sales, and partially included in the Facilities Division, for cash flow derived from fee-based contracts.
Pembina's net share of capacity at Younger and Empress is not under any third-party contracts and is used exclusively by Pembina's marketing business for proprietary volumes.
Gas processing infrastructure requirements are largely driven by area profitability and resource inventory, which is impacted by commodity prices, and producers' ability to access capital. When gas prices are relatively low and NGL prices are relatively high, producers are incentivized to extract as much NGL out of the raw gas stream as possible. When NGL prices are lower, producers may opt to leave more liquids entrenched within their raw gas. Pembina has the flexibility to offer facilities with varying degrees of liquids extraction capability to support customers in a variety of market conditions.
Gas processing is part of an integrated value chain, with Pembina able to separate crude oil and condensate, process sweet and sour gas, and extract NGL from the gas, while transporting the gas to the Chicago, Illinois area. The extracted liquids are transported through Pembina's conventional pipelines to its CDH, ENT, Edmonton Terminals, and fractionation complexes, where Pembina is able to market the products to end users.
Pembina's NGL service assets provide a multitude of services for its customers. It is common practice for customers to sign up for more than one service with Pembina, including fractionation, storage, loading, and off-loading.
At the Redwater Complex, Pembina provides NGL fractionation, storage, and terminalling (loading and off-loading) services. NGL fractionation services at the Redwater Complex are provided under predominantly multi-year, take-or-pay contracts. Pembina also provides third-party terminalling services at the Redwater Complex for the Sturgeon Refinery, which is operated by the Northwest Redwater Limited Partnership under a long-term fixed-return agreement.
Through the company’s East NGL System, Pembina provides NGL fractionation, storage, and terminalling (loading and off-loading) services in Superior, Wisconsin, and Sarnia, Ontario, primarily on an interruptible, fee-for-service basis to Pembina's Marketing & New Ventures Division. Pembina also provides storage and terminalling services in Corunna, Ontario, on both fee-for-service and fixed-return agreements, on an annual and multi-year basis, to third-party customers and Pembina's Marketing & New Ventures Division.
The Prince Rupert Terminal provides export of propane produced in western Canada for delivery into international propane markets. The terminal primarily provides service on a fee-for-service basis to Pembina's Marketing & New Ventures Division and its customers.
Vancouver Wharves capacity is contracted under long-term, take-or-pay terminal service agreements. Some of Pembina's major long-term contracts at Vancouver Wharves are extendible.
Marketing & New Ventures Division
The Marketing & New Ventures Division leverages Pembina's integrated value chain and existing network of pipelines, facilities, and energy infrastructure assets to maximize the value of hydrocarbon liquids and natural gas originating in the basins where the company operates. Pembina pursues the creation of new markets and further enhances existing markets to support both the company's and its customers' business interests. In particular, Pembina seeks to identify opportunities to connect hydrocarbon production to new demand locations through the development of infrastructure. The division also focuses on developing new business platforms and undertaking initiatives that seek to reduce the GHG emissions of Pembina's and its customers' operations.
Marketing Activities
Within the Marketing & New Ventures Division, Pembina undertakes value-added commodity marketing activities, including buying and selling products (natural gas, ethane, propane, butane, condensate, crude oil, electricity, and carbon credits), commodity arbitrage, and optimizing storage opportunities. The marketing business enters into contracts for capacity on both Pembina's and third-party infrastructure, handles proprietary and customer volumes, and aggregates production for onward sale. Through this infrastructure capacity, including Pembina's Prince Rupert Terminal, as well as utilizing the company's expansive rail fleet and logistics capabilities, Pembina's marketing business adds incremental value to the commodities by accessing high-value markets across North America and globally.
The Marketing & New Ventures Division also enters into power purchase agreements for renewable power, thus reducing Pembina's or its customers' GHG emissions.
The value potential associated with Pembina's marketing business is dependent upon, among other things, Pembina's ability to: access supply of hydrocarbons; access connections to both downstream pipelines and end-use markets; understand the value of the commodities transported, stored, and terminalled; provide flexibility and a variety of storage options; and adjust to a liquid, responsive, forward commodity market. Pembina actively monitors market conditions and commodity stream values and qualities to target revenue opportunities and service offerings. Pembina is also proactively working with upstream and downstream customers to develop value-added terminalling solutions and increase available optionality.
Aux Sable's financial results are partially included in the Marketing & New Ventures Division, for cash flow derived from commodity sales, and partially included in the Facilities Division, for cash flow derived from fee-based contracts.
Customers within Pembina's marketing business are generally those who produce, consume, and/or market crude oil, condensate, NGL, natural gas, and electricity, are downstream markets for those products, or are interested in ancillary services related to those products. Customers within the crude oil and condensate marketing business include shippers transacting with Pembina's Pipeline Division, other upstream producers, and companies that market crude oil and condensate. Customers within the NGL marketing business include those transacting with Pembina's Facilities Division, as well as other downstream companies that either consume NGL for production in various industries, such as petrochemicals and agriculture, or market NGL to end consumers. Customers within the natural gas marketing business include companies that purchase natural gas off the Alliance Pipeline and companies that supply natural gas to fill straddle facilities.
The contractual arrangements associated with Pembina's marketing business vary by service offering.
New Ventures
The Marketing & New Ventures Division is also responsible for the development of new large-scale, or value chain extending projects, including those that provide enhanced access to global markets and support a transition to a lower-carbon economy.
Pembina is pursuing opportunities associated with LNG, low-carbon commodities, and large-scale GHG emissions reductions.
Cedar LNG
In June 2024, Pembina and its partner, the Haisla Nation, announced a positive FID in respect of the Cedar LNG Project, a 3.3 mtpa floating LNG facility in Kitimat, British Columbia, within the traditional territory of the Haisla Nation. The Cedar LNG Project will provide a valuable outlet for WCSB natural gas to access global markets and is expected to achieve higher prices for Canadian producers and enhance global energy security. Given that it will be a floating LNG facility, manufactured in the controlled conditions of a shipyard, it is expected that the Cedar LNG Project will have lower construction and execution risk. Further, powered by BC Hydro, the Cedar LNG Project is expected to be one of the lowest emissions LNG facilities in the world.
Cedar LNG has secured a 20-year take-or-pay, fixed toll contract with ARC Resources Ltd. (‘ARC’) for 1.5 mtpa of LNG. As part of the arrangement with ARC, ARC will supply Cedar LNG with approximately 200 MMcf/d of natural gas to be transported via the Coastal GasLink Pipeline from its production base in the Montney. Pembina has also entered into an agreement with Cedar LNG for 1.5 mtpa of capacity on the same terms as ARC. In late 2024, Pembina initiated remarketing discussions with a broad range of potential customers, including both LNG portfolio players and Canadian producers. Pembina has received non-binding proposals covering well in excess of its contracted capacity and is in the process of shortlisting preferred counterparties to transition to definitive agreements.
The Cedar LNG Project has an estimated cost of approximately US$3.4 billion (gross), including US$2.3 billion (gross), or approximately 70 percent of the estimated cost, for the floating LNG production unit, which is being constructed under a fixed-price, lump-sum agreement with Samsung Heavy Industries and Black & Veatch, and US$1.1 billion (gross) related to onshore infrastructure, owner's costs, commissioning and start-up costs, financial assurances during construction, and other costs. The total cost of the Cedar LNG Project, including approximately US$0.6 billion (gross) of interest during construction and transaction costs, is expected to be approximately US$4.0 billion (gross). Site clearing and civil works on the marine terminal site commenced in the third quarter of 2024 and construction of the floating LNG facility is expected to begin in mid-2025. The anticipated in-service date of the Cedar LNG Project is in late 2028.
Alberta Carbon Grid
Pembina and TC Energy have formed a partnership to develop the Alberta Carbon Grid, a carbon transportation and sequestration platform. Alberta Carbon Grid completed the appraisal well drilling, logging, and testing, with well data that was incorporated into a detailed subsurface model confirming the sequestration capability. Alberta Carbon Grid continues commercial conversations with potential customers and refining the project scope.
Seasonality
Pembina's businesses are affected by seasonality in the following ways:
For conventional pipeline assets, Pembina typically experiences higher pipeline maintenance and integrity spending in the first and fourth quarters of the year (Year Ended December 31, 2024).
Conventional feeder pipelines and gathering systems generally experience lower volumes during the spring months as a result of reduced drilling, primarily due to weight restrictions on roads, producers conducting maintenance on their batteries, and gas plant turnarounds. The magnitude and duration of road weight restrictions are dependent upon spring weather conditions. Many battery operators also perform maintenance work on production facilities during the spring months. Road restrictions, and battery and facility maintenance can also impact gathering pipeline receipts during the fall months, although the impact on throughput is generally less pronounced than during the spring months. Similar seasonality impacts are experienced upstream of the pipelines at Pembina's gas processing facilities.
Volumes transported on the Alliance Pipeline and volumes processed at gas processing facilities are generally higher during winter months, as gas compression is more efficient in cold weather and there is, therefore, increased availability to flow interruptible volumes in the winter months, subject to customer demand for the service.
Industry Regulation
Pembina's assets are subject to oversight by various regulatory bodies, including, but not limited to, the Alberta Energy Regulator (AER), Alberta Utilities Commission (AUC), Alberta Environment and Protected Areas, a ministry of the Government of Alberta (AEPA), the British Columbia Energy Regulator (BCER), the British Columbia Utilities Commission (BCUC), Canada Energy Regulator (CER), Environment and Climate Change Canada, a department of the Government of Canada (ECCC), the Illinois Environmental Protection Agency, the U.S. Environmental Protection Agency (U.S. EPA), the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA), and the United States Federal Energy Regulatory Commission (FERC).
History
Pembina Pipeline Corporation was founded in 1954. The company was incorporated in 1954.
