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Pembina reports solid second-quarter results as agreement with Veresen moves forward

Pembina Pipeline Corporation has announced its results for the second quarter of 2017, an eventful period for the company which joined with Veresen to create one of the largest energy infrastructure companies in Canada. The company reported $2.8 billion worth of new projects going into service by the end of the second quarter, under budget and either on time or ahead of schedule. Pembina generated second-quarter earnings of $124 million, a 10 percent increase over 2Q 2016, and has earned $339 million year-to-date, up 58 percent year over year.

"We've had solid operational and financial results over the first half of the year," said Mick Dilger, Pembina's President and Chief Executive Officer. "On a year-to-date basis, we've reached new volume records in our Conventional Pipelines and Gas Services businesses, which have contributed to beating records in almost all of our financial metrics including adjusted EBITDA, adjusted cash flow from operating activities and adjusted cash flow from operating activities per share. We've also continued to achieve safety and operational excellence with another quarter of zero lost time employee incidents." 

On May 1, 2017, Pembina and Veresen announced that they entered into an arrangement agreement where Pembina offered to acquire all the issued and outstanding shares of Veresen to create one of the largest energy infrastructure companies in Canada. The Transaction is valued at approximately $9.7 billion (including Veresen's debt and preferred shares) and the combined company will have a pro-forma total enterprise value of approximately $33 billion. On July 11, 2017, Veresen's common and preferred shareholders voted to approve the Transaction at a special meeting of Veresen shareholders. More than 99 percent of Veresen's outstanding common and preferred shares voted at the meeting were in favour of the Transaction. On July 12, 2017, the Court of Queen's Bench of Alberta approved the Transaction. Completion of the Transaction is subject to final acceptance of the Toronto Stock Exchange and approval under the Canadian Competition Act. Pembina and Veresen currently expect the Transaction will close late in the third quarter or early in the fourth quarter of 2017, subject to receipt of the remaining approvals.

Pembina's Phase III pipeline expansion was placed into service on June 30, 2017, ahead of schedule and under budget from the expected $2.4 billion capital cost. The Phase III expansion added an incremental 420 mbpd of capacity between Fox Creek and Namao, Alberta and allows Pembina to improve operational efficiencies by transporting four distinct hydrocarbons through segregated pipelines. 

The Company's third fractionator at Redwater was placed into service on June 30, 2017, aligning with the Phase III pipeline expansion. Pembina's Redwater complex now has an aggregate fractionation capacity of approximately 210,000 bpd. This project was brought into service ahead of schedule and under budget. 

At Pembina's Canadian Diluent Hub, on June 30, 2017, additional condensate connections were placed into service on time and under budget. The facility is capable of delivering approximately 400 mbpd of condensate to regional third-party diluent pipelines. By the end of 2017, Pembina will have 500,000 barrels of above ground storage in operation and additional third-party condensate connections. 

In May 2017, Pembina announced the execution of 50/50 joint venture agreements that include key binding commercial terms in support of the proposed propane dehydrogenation and polypropylene facility as well as the formation of a new entity, Canada Kuwait Petrochemical Corporation. The new entity is currently proceeding with front end engineering design and has also selected the technology for both the propane dehydrogenation and the polypropylene portions of the facility. In the event of project sanctioning, the facility would be constructed in close proximity to the Company's Redwater fractionation complex.

Pembina is continuing to progress its Phase IV and Phase V expansions of its pipeline infrastructure. Phase IV will add capacity between Fox Creek and Namao, Alberta and Phase V will add capacity between Lator and Fox Creek, Alberta.

Pembina is progressing infrastructure development in the Duvernay area. For Pembina's 100 MMcf/d Duvernay I plant, all major equipment has been set on site with significant mechanical and electrical field work now complete. For the associated field hub, the sales product pipelines have been installed with all equipment set on site and significant electrical field work now complete. Pembina also previously entered into a 20-year Duvernay infrastructure development and service agreement.

Pembina continues to advance construction of infrastructure in support of North West Redwater Partnership's refinery and has completed over 90 percent of the overall project.

In April 2017, Pembina signed a non-binding letter of intent identifying Watson Island, Prince Rupert, as a potential site for a west coast propane export terminal.

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Government, opponents weigh in on NEB Trans Mountain decision

Southern Resident Killer Whales. – NOAA Fisheries West Coast on flickr; used under Creative Commons license

The decision by the National Energy Board to approve continued work on the Trans Mountain Pipeline Expansion was welcomed by its owner, the Canadian government, while opponents have suggested that any attempt to restart construction will end with court challenges.

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Instrumentation, Systems & Automation

Winters’ PEM now available with vibration dampening solution

Winters StabiliZR™ dampened movement eliminates pointer  flutter caused by vibration and pulsation.

The PEM-ZR Economy StabiliZR gauge is now available from Winters. The StabiliZR version of the PEM economy gauges is available in 1.5" (40mm) to 4" (100mm) dial sizes, bottom and back connections from 1/8" to 1/4" NPT and ranges from vacuum to 5,000 psi/kPa. PEM-ZR is a general purpose gauge for plumbing, hydraulic and other applications where pulsation and vibration are present.

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NEB opens door for continued Trans Mountain work with reconsideration report

A tanker passes through Vancouver harbour from Burrard Inlet. – Flickr - user geoffdude; used under Creative Commons license

The National Energy Board (NEB) has delivered its Reconsideration report to the Government of Canada, with an overall recommendation that the Trans Mountain Expansion Project (Project) is in the Canadian public interest and should be approved. 

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NASTT No-Dig Show set for March 17-21 in Chicago

NASTT's 2019 No-Dig Show blends education and technology through its topnotch Technical Program, which features over 160 peer-reviewed, high-quality technical papers, as well as opportunities for Continuing Educations Units (CEUs).

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Tourmaline adds reserves through 2018

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Tourmaline Oil Corp. is pleased to report very strong total reserve growth, liquids reserve growth and a continued reserve value increase in the current depressed natural gas price environment.  The Company executed on the 2017-2018 plan to concentrate almost entirely on internal EP growth and has produced the best reserve metrics in the Company's 10 year history over the past two years.

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Inter Pipeline hits financial and operating records in 2018

Inter Pipeline Ltd., in its financial and operating results for the three and twelve-month periods ended December 31, 2018, announced a record $1.1 billion in funds from operations, a 10 percent increase over the previous year, with its natural gas liquids processing business reaching a record annual FFO of $445 million.

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Sulzer Mixpac offers new protective coating dispensing system

Sulzer Mixpac USA, Inc., an innovator of 2-component adhesive dispensing systems, announces the availability of MIXPAC MixCoat Manual, a member of the innovative MIXPAC MixCoat cartridge-based 2-component dispensing system family. The MixCoat Manual protective coating dispensing system features a lightweight design with a unique brush assembly on a manual dispenser, which greatly increases stripe coating productivity and speed. The MixCoat Manual system is ideal for repairs and rope work on offshore oil and gas, petrochemical, marine, and bridge repair applications. 

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Netzsch adds xLC stator adjustment to triple service life of pumps

Another component has been added to the product portfolio of the NEMO progressing cavity pump from NETZSCH: the xLC unit. This unit triples the service life of the pump, particularly when conveying difficult, abrasive media. When wear occurs in the rotor-stator system, the new xLC unit allows the performance of the pump to be re-established by adjusting the preload between the conveyor elements. 

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Rockwell, Schlumberger start joint venture to create integrated automation solutions provider

The Sensia joint venture will be the first fully integrated provider of measurement solutions, domain expertise, and automation to the oil and gas industry.

Rockwell Automation, which is dedicated to industrial automation and information, and Schlumberger, a leading provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry,  have entered into an agreement to create a new joint venture, Sensia, the first fully integrated digital oilfield automation solutions provider.

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GTI quantifies opportunity to produce low-carbon Renewable Natural Gas (RNG) from wood wastes

The engineering design study, funded by West Coast utilities and a state government agency, was conducted to better understand the value, benefits, and cost of utilizing wood wastes to reduce greenhouse gas (GHG) emissions.

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Siemens showcases smart solutions for industry-specific implementation of Industrie 4.0

By integrating future technologies into its portfolio, Siemens is offering users new and far more extensive scope for leveraging the exponential growth in industrial data.

Siemens will be placing smart solutions for the industry-specific implementation of Industrie 4.0 at the heart of its Hannover Messe 2019 presentation under the banner "Digital Enterprise - Thinking industry further!" Over an exhibition space of around 4,000 square meters in Hall 9, Siemens will be showcasing these solutions with an array of new additions to its Digital Enterprise offering designed to enable the digital transformation of the discrete and process industries. 

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Performance, power and luxury combine in 2019 Ram Heavy Duty

“Ram Heavy Duty owners constantly demand the highest levels of capability to tackle the biggest jobs and with up to 15,921 kg (35,100 lb) of towing capacity, pulled by 1,000 lb.-ft. of torque from our Cummins engine, we now hold the most important titles within the segment,” said Reid Bigland, Head of Ram Brand, FCA.

Debuting during media day of the Canadian International AutoShow, the 2019 Ram Heavy Duty is the most powerful, most capable pickup in the segment, the manufacturer states, with a towing capacity of up to 15,921 kg (35,100 lb) and a maximum payload capacity of  up to 3,484 kg (7,680 lb). Driving it all is a never-before-seen torque rating of 1,000 lb.-ft. from the Cummins 6.7-litre High Output Turbo Diesel engine. The new Ram Heavy Duty also sets benchmarks in ride and handling, luxury, materials, innovation and technology, extending well past any competitive offerings. Giving maximum effort all day, every day with confidence, the new 2019 Ram Heavy Duty line of pickups steps forward with the full force of modern capability.  

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Operations strong but challenging Canadian industry knocks Cenovus for net loss in 2018

Overall, Cenovus's 2018 upstream financial results were significantly impacted by widening light-heavy oil price differentials, which reached historical highs in the fourth quarter, as well as realized hedging losses of $1.6 billion largely in the first three quarters of the year.

Cenovus Energy Inc. delivered strong operating performance in 2018 but took a financial hit in the process, the company reported in its year-end results release. While solid production continued across Cenovus operations, a $1.3 billion loss in the fourth quarter pushed it to a net loss of $2.9 million for the year.

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Oil and gas price forecasts tempered; DBRS sees no impact on credit ratings

Oil and gas price forecasts tempered; DBRS sees no impact on credit ratings

With growing evidence of a softening in global economic activity, DBRS Limited (DBRS) is tempering its base case price forecast for West Texas Intermediate (WTI) oil and Brent Oil over the period 2019 through 2021. DBRS is also reducing its base case forecast for the spot price of natural gas delivered at AECO in Alberta due to continued weak supply and demand fundamentals for Canadian natural gas. A CAD/USD exchange rate of 0.75 (versus 0.78 previously) has been assumed over the forecast period to align with current exchange rates. The current forecasts are updated from the previous forecasts published on October 26, 2018. See the commentary "DBRS Updates Oil and Gas Price Forecasts: Discounted Commodity Prices in Canada Remains the Prevailing Theme."

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