Weyburn鈥� A little east of Weyburn you come across a bulk fuel and cardlock operation known as Bluewave Energy. It鈥檚 part of a much larger company that has been on a growth trajectory for several years now.
鈥淲e鈥檙e a division of Parkland Fuel Corporation,鈥� said Chad Bresnahan, who is regional sales manager for the Prairies with Bluewave, when he met with Pipeline News at the Weyburn site on May 8, 2017.
Bresnahan said they are one of Canada鈥檚 largest distributors of fuel (gasoline and diesel), propane and lubricants.
Parkland Fuel Corporation has been in the headlines of late, with two large acquisitions of fuel marketing and distribution business. Most recently, on April 18, Parkland announced that it had entered into an agreement with Chevron Canada Limited to acquire all of the shares of Chevron Canada R&M ULC, which operates its Canadian integrated downstream fuel business.
The acquisition includes 129 Chevron-branded retail service stations principally located in Metro Vancouver, which complement Parkland鈥檚 existing 44 Chevron-branded sites in British Columbia, 37 commercial cardlock and three marine fueling locations, the complementary refinery in Burnaby, terminals located in Burnaby, Hatch Point, and Port Hardy, British Columbia, and a wholesale business which includes aviation fuel sales to the Vancouver International Airport.
Subject to satisfaction of customary closing conditions, Parkland will pay approximately C$1,460 million, plus an estimated C$186 million in working capital for the acquired business.
The 55,000 bpd refinery in Burnaby is of particular note, as it is the terminus of Kinder
Morgan鈥檚 Trans Mountain pipeline and its proposed expansion. It鈥檚 the company鈥檚 first entry into the refining business.
Bresnahan explained that they are an independent fuel marketer, buying fuel from various refiners, and not being tied to any one in particular. Their retail division includes Fas Gas, Race Trac, Chevron (in British Columbia) and Pioneer (in Ontario) fuel stations. Upon closing, Parkland will acquire the majority of the Canadian assets of the CST Brands Inc. Esso is another one of their branded distributors under which Parkland sells fuel across Canada. Additionally, on March 8, 2016, Parkland entered into an agreement with Imperial Oil to acquire Imperial Oil鈥檚 On the Run/March茅 Express convenience store franchise system. Bluewave has 111 locations, including one approximately 13 kilometers east of Weyburn on Highway 13. The location has bulk fuel, cardlock and propane services.
On May 25, 2016, Bluewave purchased Girard Bulk鈥檚 propane division.
When it comes to supporting the oil and gas business, Bresnahan listed frackers, drillers and propane to power skid engines for pumpjacks as some of their clientele. Propane is also used to supplement flaring of gas that might be too lean, otherwise.
