The Acquired Assets, strategically located near key markets in the Edmonton area, consist of pipeline connected terminalling and storage facilities capable of creating tailored products and services for specific customers. The Acquired Assets have in excess of 300,000 barrels of existing storage and sufficient bare land to develop and significantly expand this capacity as customer demand grows. The Acquired Assets will be used primarily to receive, aggregate and deliver product to and from Pembina’s customers and currently has various upstream and downstream interconnections.

The Acquired Assets form an important part of Pembina’s growth strategy in the Midstream & Marketing business, increasing PMLP’s ability to provide new, customer-focused services, expanding its terminalling capabilities through greater connectivity of its infrastructure and allowing it to bring incremental operational and merchant storage to the market.

“This strategic purchase is another example of Pembina’s ability to vertically integrate and leverage its existing assets to provide synergies across our business units,” said Bob Michaleski, Pembina’s President and Chief Executive Officer. “Our Conventional Pipelines, Gas Services, and Oil Sands & Heavy Oil business units will all benefit from this acquisition and the incremental services the Midstream & Marketing business unit can provide.”

The Acquired Assets will form an integral part of the Pembina Nexus Terminal (“PNT”), which will connect key infrastructure in the Edmonton-Fort Saskatchewan-Namao area. Pembina envisions 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.

The acquisition of the Acquired Assets was funded by Pembina’s existing credit facilities and closed on January 7, 2011.

Pembina transports crude oil and natural gas liquids produced in Western Canada, owns and operates oil sands pipelines and has a growing presence in the midstream & marketing and gas services sectors. Pembina’s common shares (PPL) and convertible debentures (PPL.DB.C) are traded on the TSX.