The Calgary, Canada-based Pembina Pipeline has acquired terminal and storage facilities in Edmonton, Alberta, for CAN$57 million (€43.9 million).
The acquired assets, located near key markets in the Edmonton area, consist of pipeline connected terminal and storage facilities capable of ‘creating tailored products and services for specific customers’.
The assets, bought through Pembina’s wholly owned subsidiary, Pembina Midstream, have more than 300,000 barrels of existing storage and bare land to expand and develop the capacity.
Bob Michaleski, Pembina’s president and chief executive officer, says: ‘Our conventional pipelines, gas services, and oil sands and heavy oil business units will all benefit from this acquisition and the incremental services the midstream and marketing business unit can provide.’
The assets will form a part of the Pembina Nexus Terminal (PNT), which will connect infrastructure in the Edmonton-Fort Saskatchewan-Namao area. Pembina said that PNT will act, among other things, as a key diluent distribution facility to serve the growing demand for diluents by customers in the oil sands and heavy oil sector.
PNT is also expected to form a receipt and delivery terminal for the potential expansion of Pembina’s Mitsue Pipeline, which will enable Pembina to expand diluent delivery to the Nipisi heavy oil area. Pembina is already developing plans to increase the interconnectivity of the terminal, aimed at providing value to both upstream and downstream customers.