Friday, May 7, 2021

Pembina Pipeline First Quarter report puts focus on Prince Rupert Terminal opening

The Prince Rupert LPG Terminal at Watson Island gains
a significant amount of attention in Pembina Pipeline's
First Quarter update for 2021

(photo from Pembina website)

Pembina Pipelines released their first quarter financial results and operation overview on Thursday, the first three months providing fo a strong start to the year which Pembina indicates makes for an improving business environment relative to much of the year before.

And while the financial results provide some of the focus for the release, it's probably the attention that the Prince Rupert Terminal receives that will be of interest to North Coast Residents, as Pembina outlines the launch of their LPG Terminal on Watson Island.

The glimpse into their newest of fixed assets providing a snapshot of the terminal's place as part of the global shipping infrastructure as well as some background towards the opening day for the facility.

In the preamble to the report, Pembina notes how the new Terminal will provide for global market access:

Prince Rupert Terminal ("PRT") entered service at the end of the quarter and as of April 22, two vessels had departed PRT, destined for international markets. In addition, Pembina has entered into a one-year agreement with a subsidiary of Mitsui & Co., Ltd. ("Mitsui") for the purchase of substantially all of the post-commissioning cargos shipped from the terminal.

The Bulk of what is known as PRT on Watson Island, comes as part of the Business update:

Pembina recently celebrated the official start-up of its first propane marine export facility, PRT, on Watson Island, British Columbia. Pembina completed dry commissioning of PRT on March 19, 2021 and began loading propane onto vessels on April 9, 2021. As of April 22, two vessels had departed PRT, destined for international markets. 

The start-up of PRT is a major step in providing new market solutions and helping add incremental value to western Canadian hydrocarbons. In conjunction with Pembina's unit train capabilities, PRT will link the rest of the Company's natural gas liquids infrastructure in western Canada with growing demand markets throughout the world, with the majority of the increased value flowing to those customers in Pembina's marketing pool.

For some of the investors and readers of Pembina's financial notes, the historical background the Prince Rupert Terminal makes for a snapshot of the project's evolution from concept to finished site.

Working together with the community, governments, and First Nations, Pembina was able to transform and re-purpose a contaminated site on Watson Island into a key connection point in moving liquefied petroleum gas from rail cars to vessels off the West Coast. 

Pembina invested approximately $12 million in remediation activities and together with the City of Prince Rupert removed a toxic and abandoned pulp mill, replacing it with a key income generating asset, which will have lasting benefits for all stakeholders. 

The construction of PRT provided significant economic benefits to the Prince Rupert area including approximately 200 construction positions and, now in operation, about 25 permanent full-time positions. 

Approximately 35 percent of the project spend was allocated towards local and Indigenous contractors. As well, a training program was established to provide local and Indigenous job candidates with an opportunity to obtain specialized training. 

Since the beginning of the PRT project, Pembina has also proudly invested over $350,000 into local community and emergency response programs that promote safety; improve access to education; protect or preserve the environment; create community spaces; and encourage a healthy lifestyle.

Included in their update for investors, was commentary from a range of federal, provincial and local leaders including Prince Rupert Mayor Lee Brain, who notes of the partnership forged between the City and Pembina.

"With our partners at Pembina, we've been able to move forward together. Working closely together over six years, we've been able to bring Watson Island back into operation."

The Report for investors also includes an update on the prospects for further expansion of the Pembina share of the Prince Rupert site, something that remains on hold for the moment.

The Prince Rupert Terminal Expansion remains deferred. Engineering of the expansion is well advanced and Pembina expects to make a final investment decision in the second half of 2021. 

More notes related to the newest shipment terminal on the North Coast can be reviewed from our archive page here.

No comments:

Post a Comment