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February | 2020

MESSAGE FROM THE PRESIDENT JENNIFER STEWART

UPCOMING EVENTS CANADIAN FUEL MARKETING CONFERENCE FUELS DISTRIBUTION AND MARKETING WORKSHOP

CIPMA MEMBER SPOTLIGHT PETER KILTY SENIOR VICE PRESIDENT PARKLAND FUEL CORPORATION

NEWS UPDATES

CONNECTION CONTENTS FULL MEMBERS

ASSOCIATE MEMBERS

| PRESIDENTS CORNER

| UPCOMING EVENTS

| RESULTS OF MEMBER SURVEY

| MEMBER PROFILE

| MEMBER UPDATE

| NEWS UPDATES

MISSION CIPMAâ€™s mission is to ensure the sustainability and growth of a healthy and viable independent fuel marketing and distribution sector at both the wholesale and retail levels in Canada. Our specific goals include: Ensuring that independent fuel marketers thrive and have the opportunity to earn a fair and reasonable return that is proportionate to their business risk and capital investment, and ensuring that Canadian consumers and independent fuel marketers have access to a competitively priced and readily available supply of fuel products in all regions of the country.

MESSAGE FROM THE PRESIDENT

UPCOMING EVENTS CIPMA CONNECTION | 2020 EVENTS

CANADIAN FUEL MARKETING CONFERENCE

JENNIFER STEWART | PRESIDENT & CEO

April 6 – 8, 2020 | Fairmont The Queen Elizabeth, Montreal QC CONFERENCE REGISTRATION IS OPEN Check your inbox for your invitation reminder. To see a real-time update, click HERE

Dear CIPMA Members and Associate Members

FUELS DISTRIBUTION AND MARKETING WORKSHOP

It is with great pleasure that I share the February edition of our Connection Magazine.

March 24, 2020

It has been a tumultuous month for the sector. With heated public discourse around Coastal GasLink and Teck’s decision to withdraw its application from the Frontier oil sands project creating further uncertainty for the future of the energy sector in Canada; businesses and governments across the country are feeling the pressure. As politicians at all levels continue to toil with how to strike the right balance between getting our energy resources to new markets against public pressures to invest in climate action, CIPMA will maintain a pulse on the regulatory impacts to the retail market. We are committed to advocating for you and ensuring you are kept up to date on the latest issues impacting the transportation fuel sector, to ensure an efficient, sustainable and prosperous future for all Members. On that note, if you haven’t already, we hope you will consider registering for the upcoming Canadian Fuel Marketing Conference, to be held in Montreal April 6-8, 2020. The conference is a great opportunity to network with key stakeholders in our industry and to hear about the latest market trends, challenges and opportunities influencing our businesses.

CIPMA, in collaboration with Natural Resources Canada, will host a day-long session in the Nation’s Capital to shed light on evolutions, advancements and the state of Canada’s downstream petroleum sector. Over 100 stakeholders are expected to attend to learn more about the downstream sector, including trends, innovations, challenges and opportunities. Stay tuned for updates!

On behalf of the Board of Directors and the team at CIPMA, I want to thank you for your continued membership and engagement in the association. As always, if there is an issue that arises that you wish to bring to our attention, please feel free to reach out at any time.

Jennifer Stewart President and CEO Canadian Independent Petroleum Marketers Association

Canadian Independent Petroleum Marketers Association | Connection 2020 |

RESULTS OF MARKET AND POLITICAL INTELLIGENCE SURVEY In December we launched our first annual market and political intelligence survey to help guide CIPMA’s priorities. This is part of our ongoing effort to ensure Members are getting the market intelligence you need and want.

PREMIUM SPONSORS

2020 CANADIAN FUEL MARKETING CONFERENCE

DIAMOND CO-SPONSORS

Thank you to all Members who took the time to respond. Your insights are invaluable to our Board and to our entire membership.

WHAT YOU TOLD US Regional and National Policy and Regulatory Areas of Interest

PLATINUM CO-SPONSORS

GOLD SPONSOR

KEYNOTE SPEAKER SPONSOR

Check your inbox for your invitation reminder. To see a real-time update clickPetroleum HERE Canadian Independent Marketers Association | Connection 2020 |

• • • • •

British Columbia Fuel Transparency Act Legislation Status of Carbon Tax implementation across Canada (by province and federally) Status of Pipeline projects and their real impact to supply Ontario carbon regime harmonization with Québec Road transportation tax impacts to EVs

Canadian Independent Petroleum Marketers Association | Connection 2020 |

with CIBC as our strategic banking partner. This approach has allowed Parkland to connect our national fuel retail sites under one innovative loyalty program, offering customers the opportunity to earn rewards they can put towards merchandise as well as instant fuel savings. Our commercial business is also continuously strengthening its value proposition and through our National Fuel Network strategy will transform its regional network into a national chain. Q. In light of the ongoing public push for fossil fuel transition, what are your biggest concerns for the distribution and marketing sector? While we live in an ever-changing world, we have a lot of confidence in the Retail Fuel market. Demand for diesel and gasoline continue to grow in our core markets, however we also see opportunity to develop lower carbon energy sources. Technology and innovation will drive this, and we’ve made great progress. We are playing a leadership role producing lower carbon fuels at our Burnaby Refinery. In 2019, we produced enough to run 10,000 cars for a year.

CIPMA MEMBER SPOTLIGHT PETER KILTY

Q. Parkland celebrated it’s 50th anniversary as a publicly traded Company this past year. The company’s growth story is an enviable one – having started with a mere handful of retails sites, and now enjoying a global footprint as a publicly traded company. It couldn’t have been easy getting to this stage. What were some

Our customers demand convenience and our innovative partnership with Filld Inc. in Vancouver is designed to meet this need. The concept is simple. We deliver the fuels our customers need, directly to their vehicles – at home or at work. This provides our customers and communities with even more fueling options. Our production of lower

of the biggest challenges the company had to overcome to reach this milestone? One of the biggest challenges for Parkland early on was integration. We’ve made mistakes along the way but learned quickly from them and adapted. We are now able to purchase great businesses, grow them and integrate them effectively regardless of size or structure.

carbon fuels and our fuel delivery service are just two examples of how we constantly evolve our business. Q. What actions do you believe the industry needs to take as a whole to improve the oil & gas narrative? This is a topic we are continually watching very closely. We cannot speak on behalf of the industry but for Parkland, we are thinking about the future and, are focusing on two key areas: • One is digital. We do a million transactions a day. That is an asset for us. And taking that information so we can better understand who we transact with and how we can better interact with them on a digital platform is something that we really need to push towards and something we're investing in. • The second thing is low carbon. We’ve done some great work in the renewable space across our business and particularly in Burnaby where we're focusing on co-processing and producing fuel with the renewable content. We are the first in Canada to do that successfully and commercialize it. We are excited about what we have achieved so far and the prospects for these adavancements going forward. Peter Kilty Senior Vice President Parkland Fuel Corporation

“We are excited about what we have achieved so far and the prospects for these advancements going forward.”

Parkland has a dedicated Integration Team that works with all groups in the company. This team ensures all departments are able to identify integration gaps, and work with teams to find appropriate and effective solutions quickly to ensure there are little to no business interruptions. Q. What would you say makes Parkland unique in the retail market sector? We continue to invest in our network through new site developments, infrastructure and the expansion of our On the Run / Marché Express convenience store designs. Our 59th Street Food Co. private label brand offerings are also a unique offering in the market. We’ve also focused on customer acquisition through our customer loyalty program, JOURNIE Rewards. It is the first national loyalty program ever developed at Parkland

Canadian Independent Petroleum Marketers Association | Connection 2020 |

NEWS UPDATES Please note that all orange text in the following section is hyperlinked. If viewing electronically, you can click to read full articles.

GLOBAL GLOBAL OIL DEMAND SET TO DROP FIRST TIME IN DECADE ON VIRUS Global oil demand will drop this quarter for the first time in over a decade as the coronavirus batters China’s economy, the International Energy Agency said. THESE OIL COMPANIES ARE LEADING THE INDUSTRY'S GREEN TRANSFORMATION Oil and gas companies know the clock is ticking to become greener as investor demand for climate action mounts. However, some are in a better spot to curb their emissions than others.

MEMBER UPDATE GREENERGY ANNOUNCES MERGER WITH CANADA’S BG FUELS 12 February 2020 - Greenergy, an international supplier of transportation fuels, and BG Fuels, a leading Canadian gasoline and convenience retailer today announce their merger. By combining Greenergy’s supply chain expertise and growing independent dealer offer, and BG Fuels’ national retail brand management and site operation capabilities, the merger will create economies of scale and provide the industry with greater choice and flexibility for fuel supply and retail branding.

Greenergy CEO, Christian Flach, with Joe Calderone, BG Fuels CEO, joining the board. Christian Flach, Greenergy CEO explained, “Since entering the Canadian market in 2013, Greenergy has invested in strategic infrastructure in Ontario to deliver low-cost and resilient fuel supply to customers, and also introduced two new retail brands for the independent dealer market. The merger with BG Fuels will allow us to extend our supply footprint and retail offer across Canada, enabling significant future growth. The experience and resources of both businesses will further strengthen our retail offer to the independent dealer market.” Joe Calderone, BG Fuels CEO commented, “Our extensive retail experience and commitment to consumers has seen BG Fuels become a leading fuel and convenience retailer in Canada. We look forward to leveraging Greenergy’s proven supply chain capabilities to enhance our portfolio of service stations across Canada.”

BG Fuels will be integrated into Greenergy over the course of the year. The combined business will be led by

Canadian Independent Petroleum Marketers Association | Connection 2020 |

CHANGE CLIMATE POLICY NOW TO AVERT OIL MARKET CRISIS, WARNS THINKTANK The oil industry is at risk of a global market shock that could halve the vax. UK GOVERNMENT ANNOUNCES MILLIONS IN FUNDING FOR ‘LOW CARBON’ HYDROGEN PRODUCTION The U.K. government announced £28 million ($36.47 million) in funding on Tuesday (February 24) for five projects focused on hydrogen production. DOVER FUELING SOLUTIONS AND SHELL INTRODUCE SELF-CHECKOUT KIOSK Dover Fueling Solutions, a part of Dover Corporation and a leading global provider of advanced customer-focused technologies, services and solutions in the fuel and convenience retail industries, has recently partnered with Shell to codevelop and roll out Self-Checkout Kiosk across a number of Shell fueling stations in the Netherlands in order to reduce queues and improve the purchasing experience for its customers. Canadian Independent Petroleum Marketers Association | Connection 2020 |

UNITED STATES UPS IS TAKING ON AMAZON WITH ITS OWN FLEET OF ELECTRIC VANS UPS has placed an order for 10,000 electric vehicles from U.K.-based start-up Arrival, with the logistics giant’s venture capital arm also investing an undisclosed amount in the firm.

NATIONAL WHY CANADIAN AUTOMAKERS SHOULD ACCELERATE THEIR ELECTRIC VEHICLE CAPABILITIES Canada’s gas-powered auto industry faces dramatic risks from the global transition to electric vehicles and it could soon start impacting jobs, according to a new report. GREENERGY EXPANDS ITS BUSINESS IN CANADA WITH MERGER The UK’s largest fuels supplier, Greenergy, has expanded its presence in Canada through a merger with the Canadian fuel and convenience retailer BG Fuels.  A SURGE IN ELECTRIC VEHICLE POPULARITY COULD REALLY SHOCK OUR ENERGY-RELIANT ECONOMY Electric-vehicle adoption is on the rise in Canada, but what’s unknown is how quickly the pace of change will be over the next decade – and what impact that will have on the Canadian energy landscape. HOW CANADA COULD STRIKE A GRAND BARGAIN ON CLIMATE AND ENERGY The approval process for the Frontier oil sands mine project is a golden opportunity for the federal and Alberta governments to move past the outdated balancing act at the heart of climate and energy policy in Canada. EMISSION-CUTTING TARGETS A TREND WITH BENEFITS FOR OIL SANDS FIRMS, OBSERVERS SAY In one of his last interactions with reporters before retiring as CEO of Calgary-based Imperial Oil Ltd., veteran oilman Rich Kruger was typically plain-spoken when asked about the carbon footprint of the oil sands.

TECK RESOURCES NEEDS AT LEAST $65 OIL AND DEEP-POCKETED PARTNERS FOR FRONTIER OILSANDS MINE TO MAKE ECONOMIC SENSE Last month, Teck’s chief executive Don Lindsey expressed skepticism about the project — which would cost an estimated $20.6 billion to construct, produce 260,000 barrels of oil per day and operate for four decades — saying the fate of the project depended on ‘three Ps’: oil prices, pipeline capacity and finding the right partners.

COURT OF APPEAL SIDES WITH ALBERTA ON FEDERAL CARBON TAX

In 2008, Beaver Lake Cree Nation sued the federal government and the province of Alberta for taking up land in its traditional territory for industrial development and harming its members’ way of life. Beaver Lake’s lawsuit is significant because, if the small band prevails, governments may have to rewrite the way they evaluate industrial permits for projects, such as oil sand mines.

In a 4-1 majority decision, the Alberta Court of Appeal has deemed the federal Liberals’ carbon tax to be unconstitutional.

FEDERAL GOVERNMENT TO LAUNCH CONSULTATIONS ON INDIGENOUS OWNERSHIP OF TRANS MOUNTAIN PIPELINE

KENNEY PROMISES NEW LAW TO PROTECT 'CRITICAL INFRASTRUCTURE' AFTER TECK FRONTIER WITHDRAWAL Last month, Teck’s chief executive Don Lindsey expressed skepticism about the project — which would cost an estimated $20.6 billion to construct, produce 260,000 barrels of oil per day and operate for four decades — saying the fate of the project depended on ‘three Ps’: oil prices, pipeline capacity and finding the right partners.

WESTERN REGION ALBERTA INDIGENOUS OPPORTUNITIES ALLOCATED $1-BILLION BY KENNEY GOVERNMENT

The federal government is launching a new set of consultations with Indigenous groups that will determine if and how they might take part in ownership of the Trans Mountain pipeline and its expansion project, Finance Minister Bill Morneau announced Monday. DON BRAID: IN PUBLIC SHIFT, JASON KENNEY SAYS ALBERTA HAS TO GO GREEN OVER TIME Premier Jason Kenney is talking publicly about the “energy transition.” This is new. And it’s significant. “Over the next decades as we go through the energy transition, we all know that there will be a continued demand for crude,” he told a panel at Washington’s Wilson Center. KENNEY ANNOUNCES OFFLOADING CRUDE-BYRAIL CONTRACTS TO PRIVATE SECTOR

Premier Jason Kenney promised to do "whatever it takes" to protect Alberta's economic future — including legislation to avert railway blockades — as organizations reacted Monday to the bombshell news that mining giant Teck Resources was withdrawing its application for a $20-billion oilsands mine. WESTERN CANADA: WHAT YOU NEED TO KNOW ABOUT THE COASTAL GASLINK PIPELINE DISPUTE, AS PROTESTS SPREAD ACROSS CANADA The dispute over the construction of the Coastal GasLink natural gas pipeline has ignited solidarity protests across the country. The impact of the blockade of a forested logging road in Northern British Columbia has now prompted the halt of commuter trains in Montreal and freight trains travelling Canadian National Railway’s network. (last updated February 14)

Canadian Independent Petroleum Marketers Association | Connection 2020 |

ALBERTA COURT RULES OTTAWA CAN APPEAL BEAVER LAKE RULING

Alberta Premier Jason Kenney announced Tuesday that his government has made good on a campaign promise to offload the former NDP government's $3.7-billion crude-by-rail deals, which he has slammed as poor value for taxpayers. JUDGE RULES ALBERTA HAS 10 DAYS TO DECIDE ON PROSPER OIL SANDS PROJECT Judge has ordered Alberta Premier Jason Kenney’s government to decide whether Prosper Petroleum Ltd. can build an oil sands project, ruling that 20 months without a decision constitute an abuse of power. SHELVED SUNCOR THERMAL OIL SANDS PROJECT WINS ALBERTA GOVERNMENT APPROVAL The Alberta government has approved an application by Suncor Energy Inc. to build a 40,000-barrelper-day thermal oil sands project but construction is unlikely to start any time soon.

ONTARIO / QUÉBEC REGION DOUG FORD WANTS TO LOOSEN EMISSIONS RULES FOR INDUSTRY. OTTAWA SHOULD SAY NO Key talks are under way between the federal and Ontario governments over what carbon rules should apply to industry in Canada’s largest province. 'UNPRECEDENTED' SUPREME COURT DECISION ON TRANS MOUNTAIN SHOULD BE MESSAGE FOR QUÉBEC: KENNEY Alberta Premier Jason Kenney says the Supreme Court of Canada’s “unprecedented” dismissal of British Columbia’s move to stop Trans Mountain pipeline expansion project should “send a message” to Québec that it can’t block the Energy East pipeline project. ALBERTA PLANS TO OPEN OFFICE IN MONTREAL TO PITCH PROVINCE'S ENERGY Alberta Premier Jason Kenney came to Québec with a message of economic partnership between East and West, announcing on Tuesday he will open an office in Montreal to promote Alberta’s energy sector and improve political and economic relations between the provinces. QUÉBEC UTILITY SIGNS FIRST DEAL WITH GAS PRODUCER UNDER CERTIFICATION PROGRAM A Calgary company is the first to land a supply contract with Québec’s major natural gas distributor based on obtaining certification for its responsible production of the heating fuel.

ATLANTIC REGION ALBERTA GETS ALL THE ATTENTION. NEW BRUNSWICK FACES ITS OWN CLIMATE TEST WITH MARITIME IRON New Brunswick is wrestling with its own Frontier-like challenge. In mid-January, a small Toronto company called Maritime Iron filed its plans to the provincial government for an environmental review. The company wants to build a facility to turn iron ore into pig iron, a product used in steelmaking. Canadian Independent Petroleum Marketers Association | Connection 2020 |

We want to share the successes of our members. If you want to feature your companyâ€™s recent achievements, updates, or simply want to be featured, please reach out to Jennifer Stewart at jstewart@cipma.org

Jennifer Stewart, President and CEO jstewart@cipma.org | Cell: 613.915.5699

Rita Molinari, CMP, Operations Manager rmolinari@cipma.org | Cell: 416.358.5207

MAILING ADDRESS | 3-1750 The Queensway, Suite 115 - Toronto, ON., M9C 5H5

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