2. Pembina is a leading pipeline
transportation and midstream
service provider, serving North
America for nearly 60 years.
Our strategically located and
integrated energy infrastructure
enables us to offer essential
services for the energy industry
across the hydrocarbon value
chain. As a trusted member of
the communities in which we
operate, we are committed to
safe, responsible and reliable
operations and to generating
value for our investors.
FOLD business model
o2 going the distance
o4 message from the CEO
o7 well-connected
o8 business at-a-glance
1o conventional pipelines
12 gas services
14 oil sands & heavy oil
16 midstream
2o ursuing the Pembina promise
p
IBC corporate information
3. CORPORATE PROFILE 1
9% (1)
CAGR in cash
flow per share (2)
19.5%
average compound
annual return (2)
$ 1.62
annual dividend
per share
$ 2
billion in dividends
paid since inception
(1)
(2)
(3)
Compound annual growth rate (CAGR)
Over the past ten years to December 31, 2011
As at August 1, 2012
$ 10
billion in total
enterprise value (3)
4. FULLY INTEGRATED SERVICES
Crude Oil
Crude
Oil
Field Oil Production Crude Oil
Connected Battery Pembina Nexus Terminal
Truck Terminals e
sat
en
Condensate
nd
Co
NGL
NGL
NGL
Gas Field Production Field Processing Field Extraction Plant Redwater Fractionator
Gas Plant
Truck Terminals Truck/Rail
Sales Gas
Pembina-owned
Facilities/Pipelines
Terminals/Rail Express Extraction Plant
Gas Plants/Extraction
Storage
Marketing Distribution
Sales Gas
Fractionator
Third Party Operations
Pembina Liquids Pipelines Export Pipelines
Pembina NGL Pipelines
Third Party Gas/NGL Pipelines
5. Condensate/Diluents
Diluted Bitumen
Synthetic Crude Field Oil Sands and
Heavy Oil Production
Refineries
Export Pipelines
NGL
Storage: Ethane, Propane,
Butane, Condensate
NGL NGL Marketing and Distribution:
Petrochemical Companies,
Refineries, Propane Retailers
Sarnia Fractionator Sarnia/Corunna Storage:
Ethane, Propane,
Butane, Condensate
Truck/Rail
NGL
Storage
6. 2 PEMBINA PIPELINE
At Pembina Pipeline Corporation
we’re going the distance
But What Does That Mean?
To us, it means that every day Pembina’s team is hard at work,
going the distance to ensure our pipeline network and energy
infrastructure meet the needs of our customers by processing,
terminalling and transporting their products safely to key North
American markets. It means protecting the environment and
delivering on our commitments to our customers, shareholders
and community stakeholders. Within the communities in which
we operate, it means doing all we can to be a good neighbour
by giving back to those whose trust we’ve earned over the
years. And, it means leveraging the experience and expertise
we’ve gained over nearly 6o years as we continue to grow
our business responsibly. We have a long-range vision, and
our goal as always is to be the operator, employer, partner,
neighbour and investment of choice in North America’s energy
infrastructure sector – creating long-term, sustainable value
for those who’ve come to expect it. At Pembina, we’re more
than pipelines, and we’re going the distance every day.
7. CORPORATE PROFILE 3
“ t Pembina, we take pride in delivering on our commitments. We
A
know that our future success relies heavily on meeting or exceeding
expectations today. That’s why we focus on how we get the job
done—setting a high standard for safety, environmental responsibility
and being a good corporate citizen.”
Robert Michaleski, CEO
8. 4 PEMBINA PIPELINE
Message from the ceo
At the beginning of this publication, you
learned what going the distance means to us
at Pembina. It really boils down to delivering
on our promises and working tirelessly to
achieve our long-term objectives.
Past Success; Bright Future Reaching further to build
With every passing year, Pembina’s success gives sustainable value
us reason to be proud. Whether you measure our At Pembina, our teams are reaching further to
growth and success over the years in terms of find innovative ways to take advantage of the
pipeline capacity, throughput, scope of services, unique position and characteristics of our assets.
processing capacity, storage, number of offices, New ideas lead to greater value – that’s the
complement of employees, share price, or total Pembina way.
return, we clearly are not only a bigger company
but also a better company. The conventional oil and gas industry has
experienced a resurgence over the past few years
With the closing of the acquisition of Provident on the heels of the development and application
Energy Ltd. (“Provident”) on April 2, 2012, of new drilling technology by producers. The
Pembina has begun a new chapter as a much result: significant land sales and drilling activity in
larger, more financially flexible and diversified areas where Pembina already has an established
company. In fact, we are now one of Canada’s presence with pipelines or other energy
largest energy infrastructure companies with an infrastructure. This revitalization provides us
enterprise value(1) of approximately $10 billion – a with an unprecedented opportunity to grow our
long way from when we went public in 1997 with business while adding value for our customers.
an enterprise value of $600 million. The scale Our assets are strategically located across some
and scope of our high-quality assets combined of the most prolific liquids-rich natural gas and
with our integrated strategy position us well to conventional oil regions in the WCSB such as the
continue delivering long-term and sustainable Deep Basin, Montney, Cardium, Swan Hills and
growth for our shareholders – something that emerging Duvernay shale play.
has always been a hallmark of our Company. Our
future has never looked brighter, which is a direct We continue to prove our ability to secure and
result of our past successes and our commitment deliver growth projects that provide long-term,
to delivering on our promises. stable returns and our future plans are no
different. Our customers want, and we provide,
an integrated approach that expands across the
hydrocarbon value chain. We are delivering on
our commitments to safe and reliable operational
Enterprise value is a non-GAAP measure, please see “Forward-Looking
(1)
Information and Non-GAAP Measures” on page IBC. performance, environmental responsibility and
prudent financial management.
9. CORPORATE PROFILE 5
Bright Future: Moving forward as We’re also very pleased that as of April 2, 2012,
one of Canada’s largest energy we became listed on the New York Stock
Exchange (“NYSE”) (under the symbol “PBA”).
infrastructure companies
We believe this dual listing provides us greater
With assets along the majority of the hydrocarbon liquidity, and are excited to share our future
value chain, Pembina is a truly integrated energy successes with a broader range of investors
infrastructure company with the scale and scope across North America.
necessary to meet the growing needs of western
Canada’s, and North America’s, oil and gas Right people to execute our plan
industry. It means a stronger balance sheet, more
Through the years, we have broadened the range
robust cash flow and the ability to strategically
of services we are able to offer our customers and
pursue larger, more complex growth projects.
have strengthened Pembina’s value proposition
We enjoy the luxury of having more growth with an even more diversified business. And
prospects on our horizon than at any time in while our enterprise value, lines of business
Pembina’s history. The opportunities ahead for and opportunities may have grown in size and
us are evident in the roughly $4 billion in unrisked number over the years, our values remain the
capital projects we have laid out through to same and are based on mutual respect, integrity
the end of 2015, and our ‘pipeline’ of projects and openness. At Pembina, we foster these
continues to expand as demand grows across values across all levels of the organization and
all our business lines. We can only meet our recognize that having the best workforce is the
objectives by providing superior, safe and reliable single most important factor in ensuring superior
customer service, effectively and efficiently performance. We pride ourselves on creating a
integrating our assets, participating as members working environment where accountabilities are
of the communities in which we operate rather clear, where strong performance is expected, and
than as visitors, and responsibly expanding our where results are recognized.
operations with a focus on enhancing profitability.
We now have well over 800 employees
Pembina’s business model is also highly
throughout North America and have come a
customer-driven – we partner with our customers
long way since 1954 when our initial headcount
to ensure they can connect supply to demand
was 31. Together, this team continues to earn
efficiently and effectively through all turns of the
and maintain our social licence to operate by
commodity cycle. We take pride in Pembina’s
strengthening Pembina’s relationships and
track record as a safe, reliable and cost-effective
reputation through the work they do each and
service provider.
every day.
Sharing in our success: Going the distance in the years ahead means
yield and growth more than just building on our solid track record.
It means continuing to deliver on the promises
I’m very proud that since Pembina was first listed
we have made to our valued customers,
on the Toronto Stock Exchange (“TSX”) 15 years
communities, stakeholders and shareholders –
ago as an income trust, we’ve distributed over
and I’m proud to say we have the assets and
$2 billion to shareholders, or about $17.50
people necessary to deliver on these promises
per share, and our 10-year cumulative annual
today and in the years to come.
dividend growth rate is approximately four
percent. We’ve provided an impressive total
return of just over 500 percent over the last ten
years to the end of 2011, far greater than the 98 Robert B. Michaleski
percent return that the SP TSX Composite Index Chief Executive Officer
achieved over the same period. Pembina Pipeline Corporation
10. 6 PEMBINA PIPELINE
1954
Pembina was founded
1997
Pembina went public
2010
converted from trust
to corporation
11
average years of
service per employee
800
full-time employees
11. CORPORATE PROFILE 7
Well connected
I
f we had to build them all over again, we’d locate our assets
in the same places they reside today.
Proximity to our customers: Integrated energy infrastructure assets that are
strategically located near long-life, economic hydrocarbon reserves.
Well-positioned for growth: Increased demand for all our services resulting from a
resurgence of conventional plays due to technological advances.
Solid business platform: Stable, low-risk, highly efficient asset base dominated by
fee-for-service revenue.
Map is for illustrative
purpose only
ALBERTA
ATHABASCA
OIL SANDS
MONTNEY
SLAVE POINT
Younger Plant Fort
McMurray
SEAL
Valleyview
Fort St John PELICAN LAKE
Grande Prairie
Swan Hills
SWAN HILLS
Cutbank Complex
DEEP
Prince BASIN Saturn
George Resthaven Redwater
Whitecourt
Drayton Valley Edmonton
CARDIUM
DUVERNAY
Kamloops Calgary
Empress
Prince Fort McMurray
George
Gas Processing Plant
Redwater Fractionator
Edmonton Midstream Storage Facility
Truck Terminal
Calgary
Rail Terminal
Oil Sands and Heavy Oil Pipelines
Conventional Pipelines
Third Party Pipelines
12. 8 PEMBINA PIPELINE
OUR BUSINESSES at a Glance
Conventional Oil Sands
Pipelines Heavy Oil
Pembina got its start in conventional pipelines Pembina plays an important and growing role in
and has expanded this business to meet the supporting Alberta’s oil sands industry, transporting
growing needs of producers in Alberta and synthetic crude oil from the Syncrude Canada Ltd.
British Columbia (“BC”). Today, the Company and Canadian Natural Resources Ltd. oil sands
owns and operates 7,850 km of conventional operations near Fort McMurray, Alberta to markets
pipelines which transport approximately half of near Edmonton. Pembina also services oil sands
Alberta’s conventional crude oil production, about producers operating southwest of Fort McMurray
thirty percent of the NGL produced in western and heavy oil producers in the Peace River/Seal
Canada, and virtually all of the conventional oil region of Alberta by providing both diluent and
and condensate produced in BC. This extensive diluted bitumen pipeline transportation. In all,
network enables us to provide reliable, cost- Pembina has approximately 1,650 km of oil sands
effective service to our customers in the oil and pipelines with about 30 percent of the total take-
natural gas producing regions of both provinces. away capacity from the Athabasca oil sands region
at the end of 2011.
13. CORPORATE PROFILE 9
Gas Services
Pembina’s growing natural gas gathering
and processing business includes the Cutbank
Complex, which comprises three sweet gas
processing plants and a new ethane extraction
facility, as well as approximately 350 km of gas
gathering pipelines. These assets are connected
directly to Pembina’s Peace Pipeline system and
serve an active exploration and production area in
the WCSB. Pembina is expanding its gas services
business by constructing the Saturn and Resthaven
enhanced NGL extraction facilities to meet the
growing needs of producers in west central Alberta.
Once these new facilities are complete, Pembina will
have approximately 900 MMcf/d of total processing
capacity net to Pembina.
Midstream
Pembina’s Midstream business is organized into
two segments: crude oil and NGL. The crude
oil segment, which represents the Company’s
“legacy” midstream operations, is situated at key
sites across Pembina’s operations and comprises
a network of truck terminals as well as large
terminals at downstream hub locations which
include storage and pipeline connectivity.
Pembina’s operations include NGL midstream
activity, which comprises two large operating
systems: Redwater West and Empress East.
The Redwater West system includes the
Younger extraction facility in BC; a 73,000 bpd
fractionator, 6.3 mmbbls of cavern storage
and terminalling facilities at Redwater, Alberta;
and, third-party fractionation capacity in Fort
Saskatchewan, Alberta. The Empress East
NGL system includes a 2.1 bcf/d interest in the
straddle plants at Empress, Alberta; and, 20,000
bpd of fractionation capacity as well as 6.4
mmbbls of cavern storage in Sarnia, Ontario.
By providing integrated services along the
hydrocarbon value chain, this business has
increased the range of services Pembina is able
to provide its customers. The Midstream business
also contributes throughput to the Company’s
Conventional Pipelines business, and provides
essential downstream services that support our
Gas Services business.
14. 10 PEMBINA PIPELINE
CONventional pipelines
Overview
• eatures approximately
F • ransports 50%
T • verlays key resource
O
7,850 km of strategically of the crude oil plays in Alberta and
located and well- produced in Alberta BC, including Cardium,
maintained crude oil and 30% of the NGL Montney, Swan Hills,
and NGL gathering produced in western and Duvernay
pipelines Canada with over 600
receipt points
ALBERTA
Fort
Fort St. John McMurray
Taylor Dunvegan
Valleyview
Grande Swan Hills
Prairie
Whitecourt Fort Saskatchewan
Drayton
Valley Edmonton
Caroline
Calgary
Kamloops
NEBC/Western System
Peace System
Drayton Valley System
Liquids Gathering System (LGS)
Northern System
Map is for illustrative
purpose only Swan Hills System
Bonnie Glen System (50% Operated)
Brazeau NGL System
15. CORPORATE PROFILE 11
Market Opportunities HIGHLIGHTS
Through the use of new technology, many producers • aily throughput growth to 413.9 mbpd
D
in western Canada are increasing production
in 2011 and 450.4 mbpd in the first half
from mature reservoirs and are seeking additional
transportation capacity to move product to market. of 2012 evidences increased drilling
Pembina proactively works with our existing and and production in the WCSB.
potential customers to support their growing needs
and enters into contractual arrangements for • apital of approximately $70 million
C
committed volumes that support our expansion plans. invested in 2011 enables Pembina to
• n 2012 and 2013, Pembina plans to invest $30
I offer increased capacity on its Drayton
million to upgrade two existing pump stations on Valley and Peace Pipeline systems in
our Peace Pipeline that will increase crude and the Edson, Alberta area.
condensate capacity by approximately 26 percent
from 155 mbpd to 195 mbpd. • apital budget of $210 million planned
C
The Cardium is one of the most prospective of for 2012, with the majority allocated to
western Canada’s unconventional or “tight” oil plays. expanding the NGL throughput capacity
Drilling for oil in the Cardium formation rebounded on two of Pembina’s major pipeline
in 2009 when horizontal drilling and multi-stage
systems and tying in the Company’s
fracturing technology increased the oil recovery factor.
Resthaven and Saturn gas plants.
• embina has expanded its Drayton Valley mainline
P
which serves Cardium producers, increasing pipeline
capacity and projected throughput on that system
by 50 mbpd from approximately 140 mbpd to 190
Key Strengths
mbpd as of August 2012. Location: Pembina has been growing
its extensive network of conventional
Conventional Pipelines is also benefiting from
increased liquids-rich natural gas drilling in many pipelines which overlay key plays that
plays, including: the Alberta Deep Basin, Cardium, feature substantial growth production
Duvernay and Montney. profiles across Alberta and BC,
• embina is progressing plans to expand the NGL
P including the Cardium, Montney, Swan
throughput capacity on our Peace and Northern Hills and Duvernay plays. Today, our
pipelines (together the “Northern NGL System”) pipelines serve the same plays that are
by approximately 50 mbpd (the “NGL Expansion”)
experiencing a resurgence as a result of
to accommodate increased customer demand
following strong drilling results and increased field new and improved technology.
liquids extraction by area producers. The $100
million NGL Expansion is underpinned by long-term Asset Integrity Operational
agreements with customers. Pembina expects to Excellence: Pembina is the leading
bring 17 mbpd of the NGL Expansion into service service provider in these areas
by the end of 2012 and the remaining 35 mbpd by
and operates safe, reliable and
the end of 2013. Once complete, the proposed NGL
Expansion is expected to increase capacity on the well-maintained assets. We direct
Northern NGL System by 45 percent to 167 mbpd. approximately 40% of Pembina’s annual
operating expenses to our asset
• nce complete, Pembina will tie in our new Saturn
O
and Resthaven facilities to Pembina’s existing integrity program.
pipeline infrastructure. These projects could add in
excess of 25 mbpd of liquids for transportation on
Pembina’s Northern NGL System.
16. 12 PEMBINA PIPELINE
GAS SERVICES
Overview
• Ownership in three
• ncludes natural
I • ntegrates with Pembina’s
I
Pembina pipeline- gas gathering and Conventional Pipelines
connected sweet gas processing capacity and Midstream businesses
processing plants and of 410 MMcf/d gross and assets
one enhanced liquids (355 MMcf/d net),
extraction facility where enhanced liquids • enerates fee-for-service
G
we capture liquids-rich extraction capacity of revenue through gathering
gas supply from north 205 MMcf/d and 350 km and extraction
western Alberta and of associated gathering
north eastern BC system pipelines
• onstructing two
C
new enhanced liquids
extraction facilities
Musreau
Cutbank Gas Plant
Gas Plant
ALBERTA
Younger
Kakwa
Gas Plant
Taylor
Fort
McMurray Resthaven
Gas Plant
Cutbank Redwater
Complex
Resthaven
Saturn
Edmonton
Fox Creek
Pump Station
Kamloops Calgary
Empress
Vancouver
Saturn
Gas Processing Plant Gas Plant
Map is for illustrative Redwater Fractionator
purpose only Pembina Pipelines
Pembina Gas Services Pipelines
Proposed Gas Services Pipelines
17. CORPORATE PROFILE 13
Market Opportunities HIGHLIGHTS
• atural gas is an abundant resource in North
N • rocessed 244.5 MMcf/d in 2011 and
P
America, and specifically in the WCSB. It is the
275 MMcf/d in the first half of 2012.
cleanest burning fossil fuel and represents an
affordable and readily available source of energy.
• ompleted a 50 MMcf/d shallow cut
C
• he liquids contained in natural gas (known as
T expansion and a 205 MMcf/d enhanced
“NGL”) are valuable due to their greater heating liquids extraction expansion of the
capabilities and alternate uses when compared
Musreau gas plant in August 2012.
to ‘dry’ natural gas, and their price is often
benchmarked against that of crude oil. This means
• lans include capital spending of
P
producers are keen to extract the highest possible
value and produce NGL. This is positive for approximately $235 million in 2012 with
Pembina; we’re able to process the gas, extract the $200 million being directed towards the
liquids and then transport them on our pipelines for Saturn and Resthaven enhanced liquids
storage and fractionation at Redwater.
extraction facilities.
• he component parts of the raw gas stream
T
include: ethane, propane, butane and condensate. – aturn is expected to be in-service
S
The higher the liquids content and the higher the during the fourth quarter of 2013 and
proportion of “heavier” liquids, the more valuable the Resthaven is expected to be in-service
raw gas stream.
in the first quarter of 2014. We anticipate
• he “heaviest” gas liquid, condensate, is used to
T that these projects could add a
dilute bitumen and heavy oil so it can flow through combined net 330 MMcf/d of enhanced
pipelines. As a result, as producers increase their
liquids extraction capacity and up to
production of oil sands and heavy oil, there is a
growing demand for condensate. This benefits 26.5 mbpd of liquids extraction, which
Pembina as we’re able to transport condensate from will be transported to market using new
the field to the Peace River/Seal heavy oil region of and existing Pembina pipeline assets.
Alberta via our Mitsue Pipeline. Once diluted, we
are then able to ship the product back down to key
markets on our Nipisi Pipeline – another example of
Pembina’s vertical integration strategy at work.
Key Strengths
Location: When Pembina’s Gas
spotlight on Services team was first established in
2009 through the acquisition of our
Two resurging plays Cutbank Complex, it was a natural
Pembina’s Gas Services assets are in the vicinity of extension of our business. The Cutbank
two of Alberta’s most exciting resource plays.
Complex was already connected to
• lberta’s Deep Basin has enormous gas-in-place
A our Peace Pipeline, so we had working
from over a dozen productive geological zones, and knowledge of and saw opportunities
its development remains profitable at relatively low
to maximize these assets.
natural gas prices, especially as new technologies
make deeper and tighter oil and gas targets more
Relationships with customers:
accessible and economic.
Today, our Gas Services team works with
• he Duvernay shale has sparked intense industry
T industry-leading producers, providing
interest with current technologies beginning to
them with the infrastructure and operating
unlock extremely low-permeability or “tight” shale,
its enormous resource-in-place of liquids-rich natural support they need so they can do what
gas, as well as encouraging initial well results. they do best – cost effectively grow their
resource production.
18. 14 PEMBINA PIPELINE
Oil Sands Heavy Oil
Overview
• eatures 1,650 km of pipeline
F • Agreements underlying Pembina’s
and approximately 900 mbpd of Oil Sands Heavy Oil assets are
contracted capacity to serve the effectively tied to the long life of
Athabasca oil sands and the heavy the oil sands and heavy oil reserves
oil region near Peace River, Alberta serviced by this business
CNRL Horizon
Syncrude
Fort
McMurray
Cheecham
Pelican Terminal
Heavy Oil
Scotford
Refinery
Edmonton
Syncrude Pipeline
Horizon Pipeline
Cheecham Lateral
Nipisi Pipeline
Mitsue Pipeline
Peace Pipeline
Map is for illustrative
purpose only
19. CORPORATE PROFILE 15
Market Opportunities HIGHLIGHTS
• he oil sands are a vast resource. The petroleum
T With the completion of Pembina’s Nipisi
contained in the sands, referred to as bitumen, is
and Mitsue pipelines, which we brought
extremely thick and must be diluted or upgraded
before it can be transported via pipeline. For on-stream in June and July of 2011, our
Pembina, this creates opportunities to provide total oil sands and heavy oil capacity
take-away capacity from the oil sands and heavy grew from 775 mbpd at the end of 2010
oil producing areas of Alberta as well as to bring
to approximately 900 mbpd by the end of
condensate or other diluents closer to the source
of production. 2011. This allows Pembina to meet the
growing needs of industry producers with
• n this business, we stand to grow with our
I
both condensate and takeaway capacity.
customers as they execute on their plans to
increase production due to the expansion rights The Mitsue Pipeline delivers condensate
we have built into certain agreements. north to the heavy oil producing region of
Peace River/Seal and the Nipisi Pipeline
brings the diluted bitumen back down
to the Edmonton area hub for further
spotlight on transport to refineries for processing.
Oil Sands Heavy Oil Assets
Syncrude Pipeline
• Contracted capacity: 389 mbpd
Key Strengths
• Contract type: Cost of Service • xperience in developing, safely
E
• Initial contract term: 25+ years constructing and operating large-scale
• Shippers: Syncrude Partnership
capital projects.
Horizon Pipeline • ccess to assets and right-of-ways to
A
• Contracted capacity: 250 mbpd facilitate future expansion.
• Contract type: Fixed Return • trong relationships with communities
S
• Initial contract term: 25+ years and customers.
• Shipper: Canadian Natural Resources Ltd.
• onsultation experience with
C
Nipisi and Mitsue Pipelines stakeholders and a vast knowledge of
• Contracted capacity: 122 mbpd the regulatory environment, enabling
• Contract type: Fixed Return us to get larger projects off the ground
• Initial contract term: 10+ years quicker and more efficiently.
•
Shippers: Canadian Natural Resources and
Cenovus Energy Inc.
• ccess to key diluent markets through
A
our other businesses.
Cheecham Lateral Pipeline
• Contracted capacity: 136 mbpd
• Contract type: Fixed Return
• Initial contract term: 25+ years
• Shippers: Conoco, Total, Nexen, CNOOC
20. 16 PEMBINA PIPELINE
Midstream
Overview
PEMBINA’S MIDSTREAM BUSINESS IS ORGANIZED INTO TWO Segments:
• he crude oil segment, which represents the
T • The NGL segment, which includes two large
Company’s legacy midstream operations, operating systems: Redwater West and
is situated at key sites across Pembina’s Empress East.
operations and comprises a network of liquids
truck terminals and larger-scale terminalling o The Redwater West NGL system includes
at downstream hub locations which includes the Younger extraction and fractionation
storage and pipeline connectivity. facility in BC; a 73,000 bpd fractionator,
6.3 mmbbls of cavern storage and
o his includes the Pembina Nexus Terminal
T terminalling facilities at Redwater, Alberta;
(“PNT”), which connects key infrastructure and, third party fractionation capacity in
in the Edmonton – Fort Saskatchewan – Fort Saskatchewan, Alberta.
Namao, Alberta area via pipelines to other
Pembina infrastructure as well as refineries o he Empress East NGL system includes
T
and downstream terminals. PNT enables a 2.1 bcf/d interest in the straddle plants
Pembina to create tailored products and at Empress, Alberta, and 20,000 bpd of
services for customers while facilitating fractionation capacity as well as 6.4 mmbbls
growth opportunities for the Company’s of cavern storage in Sarnia, Ontario.
other businesses.
Prince Fort McMurray
George
Edmonton
Calgary
Superior
Sarnia
Marysville
Chicago
Conway
Lynchburg
21. CORPORATE PROFILE 17
North Saskatchewan River
Redwater
Fractionator
Shell Scotford
Ft. Sask.
Ethane
Storage
Gas Processing Plant Namao
Redwater Fractionator
Midstream Hub
Midstream Storage Facility
Truck Terminal
Rail Terminal
Midstream Operations Clover Bar Edmonton Terminal
Other Pembina Pipelines
Third Party Pipelines
ALBERTA
Parcel A
Fort
Younger Plant McMurray
Valleyview
Fort St John
Grande Prairie
Swan Hills
Cutbank Complex
Prince Saturn
George Resthaven Redwater
Whitecourt
Drayton Valley Edmonton
Pembina
Nexus
Terminal
Kamloops Calgary
Empress
Vancouver
Map is for illustrative
purpose only
22. 18 PEMBINA PIPELINE
Market Opportunities
• idstream is well-positioned to grow its service offering. This business has built a solid foundation of
M
assets which allow for increased flexibility in responding to changing market conditions.
CRUDE OIL MIDSTREAM EMPRESS EAST NGL SYSTEM
• embina’s crude oil midstream team is working
P • Most efficient plant at Empress.
to expand our presence in the full-service truck
terminal business, provide new services and bility to extract condensate at
•A
expand existing facilities. Empress for use as a diluent in
Alberta heavy oil production.
• ull-service terminals, or “FSTs”, focus on
F
emulsion treating (separating oil from impurities Access via the Enbridge Pipeline to
•
to meet shipping quality requirements), central Canadian NGL markets.
produced water handling and water disposal.
• Growing storage and terminalling
o 2013, we expect to have an FST on stream
In opportunities at Corunna from emerging
to serve customers west of Drayton Valley. eastern Canadian shale plays.
Opportunities: Opportunities:
• rowing volumes of conventional and heavy oil
G • Location of the Corunna facility near Sarnia,
production in Alberta, coupled with downstream Ontario is ideal to enhance storage and
take-away constraints, has created potential terminalling service offering for customers
opportunities for Pembina. in the region.
o
With the industry’s need for additional REDWATER WEST NGL SYSTEM
storage capacity and the growth in rail as a
means to transport various energy products, • ocated to capture oil sands, gas liquids and
L
Pembina is considering being able to provide other emerging growth opportunities.
these enhanced services at PNT.
• Low-cost expansion capabilities with ample
• rowth in heavy oil production is creating
G room to grow.
strong demand for creative solutions to
• Large-scale, sulphur capable
producer’s diluent needs.
ethane-plus fractionator.
o
Connected to a variety of diluent sources
• Largest NGL rail yard in Canada.
via both pipeline and rail, and near diluent
manufacturing, PNT is positioned to be Opportunities:
the service provider of choice. This could
help to underpin new heavy oil pipeline • Increased liquids-rich natural gas drilling
projects. As well, Pembina is able to blend provides increased supply for the entire
customized diluents. Redwater West system.
• efiners are looking for consistent and
R • Hydrocarbon storage demand continues to
sometimes unique blends of crude oil. grow, facilitating further cavern development
at the Redwater site. Pembina is continuing
o
Investments in blending capacity at to develop fee-for-service storage caverns at
Pembina’s terminals allow us to optimize Redwater, with one expected to come into
the cost-benefit of crude oil blends and service in the fourth quarter of 2012.
tailor product to the specific requests
of customers. • Pembina expanded the fractionation capacity
at Redwater by approximately 8,000 bpd in
2012 at an estimated cost of $15 million.
To meet the growing needs of producers in
•
the region, Pembina has initiated development
of and is currently soliciting customer support
for a new 70 mbpd ethane-plus fractionator at
the Redwater site.
23. CORPORATE PROFILE 19
Key Strengths
Years of experience and significant
intellectual capital in the oil and gas
industry: Pembina’s Midstream team’s
experience and expertise provides us with
the ability to take advantage of unique
opportunities that leverage our assets
and market conditions.
Service offering: Pembina is able to
provide a “one-stop-shop” for customers
with truck and full service terminals, rail
loading and off-loading, trucking services
and storage. These allow for customized
services, giving Pembina a clear
competitive advantage.
Storage capacity: With Pembina’s
abundant storage capacity, Midstream
has the ability to provide a necessary
buffer between hydrocarbon production
and consumption, allowing producers to
store inventory to accommodate outages
and to capitalize on seasonal price
differentials that may develop over the
course of a year.
Fractionation capacity: Fractionation
refers to the process of using
temperature and pressure to separate
the NGL mix into individual specification
products including ethane, propane,
butane and condensate. The Redwater
fractionator has several significant
advantages, including the ability to
process high sulphur NGL, and is one
of only two fractionation facilities in the
Fort Saskatchewan area capable of
processing ethane-plus. These unique
characteristics provide Pembina with
access to a broad array of NGL streams.
24. 20 PEMBINA PIPELINE
PURSUING THE PEMBINA PROMISE
Pembina is committed to going the distance and achieving
excellence in every aspect of our business, from how we design,
construct and operate our pipelines and facilities to how we
interact with employees, customers and community neighbours.
SAFETY ENVIRONMENT
To Pembina, being a responsible operator in our corporate culture. We reinforce our
means doing the right things to protect the commitment to excellence in SES in our daily
health and safety of people and the environment operations through regular safety meetings,
– and constantly looking for ways to improve. extensive contractor screening, rigorous project
Our Safety, Environment Security (“SES”) inspection, review of potential hazards, and
management system is a cornerstone of ensuring our assets and practices meet or
Pembina’s success and is deeply embedded exceed industry best practices.
25. CORPORATE PROFILE 21
Working towards zero On a regular basis, our field representatives,
accidents, injuries and SES personnel and management teams review
all incidents that do happen, allowing us to
environmental incidents
understand the root cause and implement
Pembina believes that all accidents, injuries and corrective and/or preventative measures.
incidents are preventable. That’s why we won’t We continue to work towards leading types
stop until we reach our goal of zero workplace of safety metrics to be more proactive in
incidents. To achieve this, we have a combination incident prevention.
of loss management policies, programs and
procedures (which include our emergency Driving our way to zero
response plans) and an incident reporting and
Each year, Pembina employees drive millions of
tracking system.
kilometres to manage and monitor our pipeline
rights-of-way. To minimize the number of motor
Arming ourselves with the
vehicle incidents we experience, Pembina has
knowledge to improve established an extensive program aimed at
Tracking health, safety and environmental making sure our drivers operate safely.
statistics is just as important as measuring
Part of this program includes training. Any
operating and financial performance. It’s a key
Pembina employee expected to drive on
part of our operations and allows us to see how
Company time is required to participate in
we’re doing and where we need to improve.
Collision Avoidance training every three years.
Specifically, it gives us a benchmark to measure
This helps make sure our employees understand
against in future years, it helps us analyze our
and can apply techniques to avoid an accident
current results, and it gives us the information
wherever possible. As of March 31, 2012, 344
we need to identify potential opportunities
employees have participated in this training,
for improvement.
representing 96% of employees identified as
Company drivers.
Pembina records each and every ‘close call’. This allows us to make sure we know
what we’re doing right and what can be learned, and then transfer that knowledge to
others on the team. We can then establish corrective actions to make sure an incident
doesn’t happen next time. In 2o11, Pembina recorded 534 close call incidents.
In rural areas, encounters with wildlife are major causes of motor vehicle incidents.
As a result, Pembina enhanced its driving policy. Now, any Pembina employee driving
in rural areas on Company-related business must reduce their speed by 1o km/hour
from the posted speed limit between dusk and dawn.
26. 22 PEMBINA PIPELINE
ENVIRONMENTAL STEWARDSHIP
To deliver on our commitment of being a project design and operations. By developing
responsible operator, Pembina employs an and adhering to these plans, we are able to
Environmental Management System (“EMS”). reduce the potential for adverse effects on
This allows us to minimize the impact our the environment.
operations have on the natural environment.
PREVENTION IS KEY
Growing Responsibly To mitigate potential environmental risks at
Before beginning any new growth project, our operating facilities, we’ve also installed
Pembina conducts environmental studies and groundwater monitoring wells where required.
impact assessments to better understand the We use the annual monitoring from these sites to
potential effects a proposed project may have on map trends, gain early indications of potential soil/
the soil, land, air, plants, wildlife and watersheds. groundwater impact, and identify appropriate or
We then develop detailed plans in consultation necessary remedial actions.
with the local regulatory authorities, First Nations,
Métis, landowners and other stakeholders to To measure the effectiveness of our EMS
minimize our environmental footprint. programs, Pembina also conducts regular audits
and inspections. At least one of Pembina’s
By working closely with our stakeholders to operating areas is subject to a third-party
identify potential risks or areas of concern, environmental audit every year, with each district
we’re better able to integrate that input into our being revisited at least once every five years.
EMERGENCY PREPAREDNESS
Pembina knows that maintaining our license employees are always prepared in the event of an
to operate means being ready to respond in emergency. As well, we continually update these
the unfortunate event of an incident. Giving ERPs to ensure they are in line with the latest
our employees the skills they need to respond regulatory requirements and include updated
rapidly and safely to incidents through tabletop asset, landowner, resident and stakeholder data.
and full-scale exercises allows us to minimize
any potential impact to the communities in Further, Pembina owns a substantial inventory
which we operate, to the environment, and of spill response equipment that is strategically
to our customers. located throughout our operations. We are also
an active member of the industry-wide Western
Pembina’s loss management program includes Canadian Spill Services (“WCSS”) Co-Op, giving
comprehensive Emergency Response Plans us full access to Co-Op response equipment
(“ERPs”) that set out specific procedures and the opportunity to participate in emergency
and responsibilities for our staff to ensure response exercises with other WCSS members.
“Being the industry neighbour of choice means taking care of the
communities in which we operate. We invest heavily in tools and
technologies that help ensure the safety of our operations, and we
provide our employees with ongoing training so they can respond
quickly to protect the safety of the public, our employees and the
environment should an incident occur. ”
Mick Dilger, President and Chief Operating Officer
27. CORPORATE PROFILE 23
Minimizing our environmental footprint:
Pembina is committed to ensuring our pipelines and facilities are designed,
constructed and operated in a safe and environmentally responsible manner.
For the pipeline components of our two new gas processing and enhanced
liquids extraction facilities, the Saturn and Resthaven gas plants, we will
use existing rights-of-way wherever possible. This will help us minimize the
potential environmental impact of construction while having the added
benefit of reducing our costs.
28. 24 PEMBINA PIPELINE
RELIABLE AND
RESPONSIBLE OPERATIONS
Pembina has provided safe and reliable pipeline As Pembina’s operations grow, managing our
and energy infrastructure services to the oil and assets safely and efficiently continues to be our
gas industry for nearly six decades. We’re proud overarching imperative. We have enhanced and
of our track record and continue to build on that optimized our Pembina Specifications, Standards
foundation of success. and Project Management Guidelines for all our
facilities. This involves continually reviewing our
At the heart of our operations is Pembina’s operations, which includes pipelines, processing
Edmonton Control Centre, where we employ plants, pump stations, storage facilities, product
customized SCADA (Supervisory Control and terminals, and transportation hubs, to ensure we
Data Acquisition) technology to monitor pipeline meet or exceed all regulatory codes as well as
flow and operating conditions remotely. Operators design and operating specifications.
oversee the SCADA system and associated leak
detection software 24-hours a day, 365 days
per year. These technologies allow Pembina
to proactively identify potential issues on our
pipelines and facilities at an early stage so we
can employ early mitigation measures.
29. CORPORATE PROFILE 25
At Pembina, reliability is more than just a word:
In 2o11, there was flash flooding in north eastern BC as a result of heavy rain. As
a precautionary measure and to ensure the ongoing safety of the communities
where we operate, Pembina shut down our Western System pipeline for
15 days. During this time, we monitored the line by air, land and through our
Edmonton Control Centre, and conducted integrity inspections of the line
before restarting operations. In situations like this, where there is a threat to
the safe and reliable operations of our infrastructure, we put safety and the
environment ahead of all else.
OUR TEAM
We know that having the right people in place veterans passing their knowledge on to new
is critical to our ability to go the distance for all employees who, in turn, bring new ideas and
our stakeholders. Pembina is among the largest enthusiasm that will shape the next generation of
energy infrastructure companies in North America, our corporate success.
and we take pride in being one of the best.
At Pembina, it’s not just about getting the
We have a proven track record of recruiting, job done; it’s also about how we get the job
mentoring and retaining a highly skilled workforce. done. Our work is guided by a values-based
We emphasize leadership development at all approach that calls for employees to set a
levels in our organization and we have created a high standard for how we interact with our
working environment where accountabilities are colleagues, our customers and our communities.
clear, strong performance is expected and results Safety, operational reliability and environmental
are recognized. responsibility are important attributes at Pembina
and, of course, we demand that business is
Pembina boasts many experienced staff – the always conducted in a way that is respectful.
average length of service for employees is 11
years. We place great emphasis on Pembina
“ very business is run by people and at Pembina, our employees are
E
our best asset. Their commitment to the safe and reliable operations
of our business, their provision of quality services for our customers,
their execution of our strategy and their own personal development
is integral to Pembina’s past and ongoing success.”
Debbie Sulkers, Vice President, Corporate Services
30. 26 PEMBINA PIPELINE
As part of our Nipisi and Mitsue Pipeline project, Pembina established a program
to train individuals from some of the neighbouring First Nations communities to
conduct environmental impact assessments. This program was a great success,
helping build capacity within communities near our operations while demonstrating
Pembina’s commitment to finding opportunities for them in our current and future
potential work.
COMMUNITY AND
ABORIGINAL RELATIONS
At Pembina, building long-term relationships We seek to keep the communication lines open
based on mutual trust with communities is a over the full operating life of our assets to ensure
top priority. Part of building that trust is making all stakeholders remain informed about our
sure we understand regional issues so we can activities and feel comfortable in contacting us
anticipate and manage the social impacts of about any concerns.
our operations on local communities. Over the
years, that strategy has served us well; we’ve Because Pembina’s operations are located
developed a reputation for honesty, transparency on or near First Nations and Métis lands, our
and treating our Aboriginal communities and local commitment to consultation with these audiences
stakeholders with respect. is important. Pembina takes special pride in
the positive relationships we have developed in
Consultation that counts these communities. Building mutually beneficial
relationships with Aboriginal communities helps
Before a project begins, Pembina is in the field us understand the importance of the area’s
consulting with Aboriginal and local communities, traditional knowledge and culture while exploring
landowners and other stakeholders affected opportunities to collaborate on community
by the proposed development. Our aim: to projects relating to health, education, training,
learn about their needs and expectations, and employment and business development.
to address potential concerns. We know that
effective engagement requires open, two-way
communication and we employ a number of tools
– including open houses, one-on-one discussions
and community meetings – to identify and resolve
issues and find solutions.
31. CORPORATE PROFILE 27
COMMUNITY INVESTMENT
Communities throughout Pembina’s operations Our community investment program also
put their trust in our Company and allow us encourages our employees to give back to the
to operate in their backyards. Through our communities where they live, work and play.
community investment program, we honour this Through our involvement in United Way and our
relationship and give back to the communities Employee Matching Gift Program, we help our
where we operate and help ensure they have employees support the organizations that are
the programs and infrastructure necessary to meaningful to them. The result of these efforts
remain vibrant. is a community investment program that is a
source of great pride at Pembina. For example,
Pembina’s investment decisions are based in 2012, Pembina set a new record by raising
on our understanding of the unique needs over $1 million including employee contributions
and characteristics of each community. As a and the Company’s match for the United Ways
result of our consultation efforts, we focus our in our operating communities. By volunteering
community investment initiatives on supporting with United Way funded agencies, and through
organizations that advance education, preserve donations and events such as silent auctions,
and protect the environment, foster wellness raffles and food sales, Pembina employees have
and build community. shown what’s possible when you work together
towards a common goal.
32. 28 PEMBINA PIPELINE
Pembina provides annual funding to organizations such as STARS Air
Ambulance, Alberta Eco-Trust, and various local community gathering
spaces, to name a few. In 2o11, Pembina embarked on a new relationship
with the RiverWatch Institute of Alberta. This province-wide program
helps connect young people with the science relevant to their local
rivers so they can better understand aquatic health. By partnering with
educational initiatives that are directed at environmental awareness,
Pembina is helping ensure programs are offered in our communities and
student user-fees remain affordable.
33. CORPORATE INFORMATION
Forward-Looking Information and HEAD OFFICE
Non-GAAP Measures Pembina Pipeline Corporation
This profile contains forward-looking statements Suite 3800, 525 – 8th Avenue S.W.
and information that are based on Pembina’s
Calgary, Alberta T2P 1G1
current expectations, estimates, projections
and assumptions in light of its experience and
its perception of historical trends. Actual results
AUDITORS
may differ materially from those expressed or
implied by the forward-looking information. This KPMG LLP
profile also refers to certain financial measures Chartered Accountants
that are not defined by Canadian generally
accepted accounting principles (GAAP). For more Calgary, Alberta
information, about these non-GAAP measures
and the forward-looking information, please refer
to Pembina’s various financial reports and public TRUSTEE, REGISTRAR
filings available at www.pembina.com and on TRANSFER AGENT
Pembina’s online profile at SEDAR and EDGAR. Computershare Trust Company of Canada
All financial information is in Canadian dollars. Suite 600, 530 - 8th Avenue S.W.
Calgary, Alberta T2P 3S8
1-800-564-6253
COMMON ABBREVIATIONS
The following is a list of abbreviations that may be
used in this document: STOCK EXCHANGE
Pembina Pipeline Corporation
BC British Columbia
TSX listing symbols for:
bpd barrels per day
Common shares: PPL
mbpd thousands of barrels per day
5.75% convertible debentures:
boe barrels of oil equivalent PPL.DB.C, PPL.DB.E, PPL.DB.F
mboe thousands of barrels of oil equivalent NYSE listing symbol for:
NGL natural gas liquids Common shares: PBA
MMcf millions of cubic feet
MMcf/d millions of cubic feet per day
MAKE A CONNECTION WITH US:
bcf/d billions of cubic feet per day
Main: 403-231-7500
km kilometre
Toll Free: 1-888-428-3222
U.S. United States
Email: investor-relations@pembina.com
WCSB Western Canadian Sedimentary Basin communityrelations@pembina.com
TSX Toronto Stock Exchange Website: www.pembina.com
NYSE New York Stock Exchange
Printed in October 2012
Reliable | Trusted | Responsible
Designed by bmir Bryan Mills Iradesso Committed to being the operator, employer,
www.bmir.com partner, neighbour and investment of choice in
North America’s energy infrastructure sector
