January 17, 2007

Insight Information4th Annual Canadian Oil Sands Summit

Robert B. Michaleski

President and Chief Executive Officer

Pembina Pipeline Income Fund

Forward-Looking Statements

The information contained in this presentation contains certain forward-looking

information and statements within the meaning of applicable securities laws. Such

information and statements includes, among other things, statements regarding

business strategy, future cash flows and cash distributions, the completion and in-

service dates of future projects, future expansion and diversification opportunities

and other expectations, beliefs, goals, objectives, assumptions or statements about

future events or performances. Undue reliance should not be placed on these

forward-looking statements and information as both known and unknown risks and

uncertainties, including those business risks stated below, may cause actual

performance and financial results in future periods to differ materially from any

projections of future performance or results expressed or implied by such forward

looking statements and information. Forward-looking statements are based on the

Fund’s current expectations, estimates, projections and assumptions in light of its

experience and its perception of historical trends as well as current market

conditions and perceived opportunities.

Forward-Looking Statements: Continued

These statements are not guarantees of future performance and are subject to a

number of known and unknown risks and uncertainties, including but not limited to,

the impact of competitive entities and pricing, reliance on key alliances and

agreements, the strength and operations of the oil and natural gas production

industry and related commodity prices, regulatory environment, fluctuations in

operating results, the availability and cost of labour and other materials, the ability to

finance future projects on advantageous terms, tax laws and tax treatment of

distributions and certain other risks detailed from time to time in the Fund’s public

disclosure documents. Additional information on these and other factors that could

affect the Fund's future operations and financial results are contained in the Fund's

Annual Information Form and its Management's Discussion and Analysis filed with

the Canadian securities regulatory authorities. Except as required by applicable

securities laws, the Fund and its subsidiaries assume no obligation to update

forward-looking information and statements should circumstances or management's

expectations, estimates, projections or assumptions change.

Fund Profile at December 29, 2006

Trust Units Outstanding 126.2 MM

Trust Unit Trading Price $15.83

52 Week Trading Range $18.58-$12.88

Annual Distribution Rate (per trust unit) 1 $1.32

Total Enterprise Value $2.5 billion

S&P and DBRS Corporate Credit Rating BBB

DBRS Stability Rating STA-2 (low)1 Paid Monthly, $1.20 per unit until December 31, 2006, $1.32 effective January 2007

PIF.UN1 2005 projection based on Management’s outlook and guidance as at presentation date.

1

Stable Cash DistributionsStable Cash Distributions

$0

$25

$50

$75

$100

$125

$150

1998 1999 2000 2001 2002 2003 2004 2005 2006

$0.85

$0.90

$0.95

$1.00

$1.05

$1.10

$1.15

$1.20

Distributed Cash ($ millions) $ Per Unit

1

1 Q306 distribution annualized for illustrative purposes only. 2006 annualized per unit distribution: $1.14 to July, 2006, $1.20 to December, 2006. Annual Distribution rate

increased to $1.32 per unit effective January 2007

Slide Title

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

1998 1999 2000 2001 2002 2003 2004 2005 3Q06

Debt

Equity

($ billions)

1

1 Debt includes convertible debentures

2.7

27.3%

2.7

34.2%

3.03.02.72.84.1--Senior Debt to EBITDA

23.5%35.8%28.6%31.3%---Debt to Total EV1

Conservative Capital StructureConservative Capital Structure

Diversified Energy Infrastructure Assets in Three Segments

Diversified Energy Infrastructure Assets in Three Segments

EDMONTON

CALGARYKAMLOOPS

PRINCE GEORGE

TAYLOR

FORT McMURRAY

Conventional Pipelines

Oil Sands

Pipelines By Others

Ethylene Storage Facility

VANCOUVER

CONVENTIONAL

� A leading integrated transportation service provider in western Canada

MIDSTREAM

� Growing midstream business

leverages inherent value of existing

pipeline and storage infrastructure to

access low-risk alternative

supplemental revenue

OIL SANDS

� A competitive player in oil sands transportation infrastructure with contracted capacity of 389,000 bpd, growing to 640,000 bpd by mid-2008

KITIMAT

Proposed Pipeline

Segmented Net Operating Income

$0

$50

$100

$150

$200

$250

2001 2002 2003 2004 2005 2006 *

($ millions)

Conventional Oilsands Midstream

* Third quarter 2006 results, annualized for illustrative purposes only.

Throughput Composition

36%

36%

28%

Conventional crude oil

Synthetic crude oil

Condensate and Natural Gas Liquids

Net Operating Income

61%17%

22%

Conventional PipelinesOil SandsMidstream Business

Q3 2006 Throughput and Net Operating Income Composition

Q3 2006 Throughput and Net Operating Income Composition

Oil Sands Infrastructure: StrategyOil Sands Infrastructure: Strategy

� Pembina is uniquely positioned with infrastructure and

operating knowledge in the oil sands region

� We will continue to use this competitive position to pursue

future opportunities in this key area

� The fully-contracted and very long term returns generated by

the oil sands assets provide a secure stream of stable cash

flow to the Fund

Oil Sands Infrastructure: Development ActivityOil Sands Infrastructure: Development Activity

Fort McMurray

Athabasca Oil Sands

Sherwood Park Control CentreEdmonton

CNRL Horizon

Scotford Terminal

Horizon Pipeline

AOSPL PipelineAthabasca

River

Syncrude

Cheecham Lateral

Oil Sands Infrastructure: ProjectsOil Sands Infrastructure: Projects

Horizon & Cheecham Pipelines:

� 25-year extendible contract term

� fixed rate of return on invested capital

� flow-through operating costs

� no commodity price or pipeline utilization risk

Other Oil Sands Development Projects*Other Oil Sands Development Projects*

Fort McMurrayAthabasca Oil

Sands

Sherwood Park Control CentreEdmontonScotford Terminal

Horizon Pipeline

AOSPL PipelineAthabasca

River

Cheecham Lateral

Encana BorealisCNRL Horizon

Petro Canada Ft. Hills Synenco Northern Lights

Total JoslynHusky

Oil Sands Development Projects

Cheecham

IOL Kearl Lake

Syncrude

* Map depicts partial listing only of regional publicly announced project proposals; project locations on map are approximate.

� 100,000 bpd throughput (16,000 m3/day)

� Condensate imported globally (by Shippers) delivered to Kitimat,

B.C.

� Arrangement with existing marine terminal at Kitimat, B.C.

sought

� Combination of new (880 km) and existing (530 km) for a total of

1410 km of pipeline

� Project cost $1.2 billion

� Estimated completion January 2010

Pembina’s Proposed Kitimat to Summit LakeCondensate Pipeline Project

Proposed Condensate Pipeline Route

AlbertaBritish

Columbia

Taylor

Kitimat

Vancouver

Calgary

EdmontonPrince George

Rainbow

Enbridge

Rangeland

Northern Route

Dawson Creek

Kamloops

LegendExisting PembinaNew Pembina C5Existing Pembina to C5Other Pipelines

LegendExisting PembinaNew Pembina C5Existing Pembina to C5Other Pipelines

Fort McMurray

Agreement in Principle on Contract Terms with Shippers include:

� 15-year extendible contract term

� fixed rate of return on invested capital

� flow-through operating costs

� no commodity price or pipeline utilization risk

Proposed Kitimat to Summit LakeCondensate Pipeline Project

Investment Highlight Summary

� Stable, liquid trust sector investment

� Diversified base of premium energy infrastructure assets,

dominant market position

� Consistent & sustainable monthly cash distributions

� Conservative capital structure

� Investment grade credit ratings (S&P’s and DBRS)

� Excellent business development prospects