Pembina Pipeline Advances Greenlight Electricity Center Project
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: seekingalpha
- Investment Decision: Pembina Pipeline has made a positive final investment decision to advance the Greenlight Electricity Center, a 932 MW gas-fired combined cycle power generation facility aimed at powering a major data center development in Alberta.
- Capital Cost Estimate: The project has a Class 3 capital cost estimate of approximately C$4 billion, which rises to C$4.6 billion when including interest during construction and financing costs, resulting in an estimated net benefit of C$2.1 billion to Pembina.
- Long-Term Agreement: The facility will supply electricity to the data center under a long-term tolling agreement, with an anticipated in-service date in H2 2030; about 85% of the project's costs are secured under fixed-price agreements, ensuring financial stability for the project.
- Revenue Expectations: Once operational, Pembina expects the project to generate an annual run-rate adjusted EBITDA of approximately C$310 million net to the company, further enhancing its financial performance and market competitiveness.
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Analyst Views on PBA
Wall Street analysts forecast PBA stock price to fall
9 Analyst Rating
7 Buy
1 Hold
1 Sell
Moderate Buy
Current: 46.660
Low
35.99
Averages
42.31
High
47.51
Current: 46.660
Low
35.99
Averages
42.31
High
47.51
About PBA
Pembina Pipeline Corporation is an energy transportation and midstream service provider. The Company owns a network of strategically located assets, including hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and an export terminals business. It operates through three divisions: Pipelines Division, Facilities Division and Marketing & New Ventures Division. The Pipelines Division provides customers with pipeline transportation, terminalling, and storage in key market hubs in Canada and the United States for crude oil, condensate, natural gas liquids and natural gas. The Facilities Division includes infrastructure that provides Pembina's customers with natural gas, condensate and NGL services. The Marketing & New Ventures Division undertakes value-added commodity marketing activities, including buying and selling products, commodity arbitrage, and optimizing storage opportunities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Canada-British Columbia Signs Prosperity Agreement to Unlock $200 Billion Investment
- Major Investment Commitment: The Cooperative Prosperity Agreement signed on July 2 by Prime Minister Mark Carney and Premier David Eby is expected to unlock over $200 billion in new investments, marking a significant federal commitment to British Columbia's resource economy.
- West Coast Pipeline Project: Alberta Premier Danielle Smith announced a partnership between Trans Mountain Corporation and Pembina Pipeline to construct a new west coast pipeline capable of transporting one million barrels of oil per day, with an estimated cost between $35 billion and $44 billion, expected to be designated a national interest project by October 1, 2026.
- Job Creation: The agreement and its associated projects are projected to create approximately 175,000 new jobs, highlighting the close link between resource development and economic growth, further driving Canada's economic recovery.
- Win-Win for Environment and Resources: The agreement emphasizes the dual goals of resource development and environmental protection, including a $250 million investment for whale protection, reflecting the government's commitment to balancing resource development with sustainability.
See More
Pembina Approves Investment in Greenlight Electricity Center
- Major Investment Decision: Pembina Pipeline Corporation has officially approved the final investment decision for the Greenlight Electricity Center (GLEC), with construction costs estimated at approximately C$4 billion, which will provide dedicated electricity to a hyperscale data center in Alberta, creating a long-term source of fee-based earnings and marking a significant advancement in energy infrastructure.
- Technological Innovation: The GLEC will utilize highly efficient combined cycle generation technology featuring two Siemens Energy gas turbines and two steam turbines, maximizing energy output from natural gas, which is expected to significantly improve fuel efficiency and lower operating costs, thereby enhancing overall performance.
- Stable Revenue Structure: The project will operate under a long-term Electrical Energy Supply Agreement, where customers pay for available generating capacity, reducing exposure to fluctuations in wholesale electricity prices and ensuring stable, long-term revenues that align closely with Pembina's established fee-based business model.
- Future Expansion Potential: The GLEC site has already been permitted for expansion to approximately 1,864 megawatts, allowing for additional generating capacity to meet the increasing electricity demand in Alberta, while securing long-term transportation arrangements through multiple pipeline systems enhances operational flexibility and supply security.
See More
Pembina and Partners Advance $3.2bn Greenlight Electricity Centre
- Investment Decision: Pembina Pipeline, alongside Morgan Stanley Infrastructure Partners and Kineticor Asset Management, has made a final investment decision to construct the Greenlight Electricity Centre, a C$4.6bn ($3.2bn) gas-fired power plant in Sturgeon County, Alberta, expected to be operational in H2 2030 to meet rising data center power demands.
- Financial Structure: Pembina will cover approximately C$2.3bn of the total capital expenditure, with ownership split 47.5% each for Pembina and MSIP, and 5% for Kineticor, while a long-term energy supply agreement will provide 932MW capacity to the data center, projecting an annual run-rate adjusted EBITDA of around $310m.
- Technology and Construction: The facility will utilize Siemens Energy gas and steam turbines, with about 85% of capital costs secured under fixed-price agreements, while a consortium of Aecon Group and Técnicas Reunidas will manage engineering, procurement, and construction to ensure timely delivery of the project.
- Future Expansion Potential: The project has received necessary regulatory approvals and has the potential for future expansion to 1.86GW, requiring approximately 150 million cubic feet of natural gas per day, with transport capacity secured through existing pipeline agreements, highlighting Pembina's advantageous position in the Canadian midstream energy sector.
See More
Pembina Pipeline Signs Agreement for Energy Infrastructure Initiative
- Energy Infrastructure Collaboration: Pembina Pipeline has signed a preliminary agreement with the Canadian federal and provincial governments, along with Trans Mountain, to participate in a nation-building energy infrastructure initiative aimed at expanding global market access for Canadian crude oil, highlighting the company's significant role in national energy strategy.
- Market Access Expansion: This multi-stakeholder partnership aims to strengthen Canada's energy transportation network, and while Pembina's participation is subject to certain conditions, this initiative will enhance the international competitiveness of Canadian crude oil and promote economic growth.
- Pipeline System Optimization: Trans Mountain plans to increase system capacity from 890,000 bpd to 1,190,000 bpd through its mainline optimization project, which is expected to add approximately 300,000 bpd of transportation capacity, reflecting the continued strong demand for Canadian crude oil.
- Strong Crude Oil Demand: The existing system operated at full capacity during the second and third quarters of 2026, indicating robust market demand for Canadian crude oil, further solidifying Pembina's position in the energy market.
See More
Pembina Enters Agreement with Canadian Government for Energy Infrastructure Project
- National Energy Infrastructure Initiative: Pembina has entered a non-binding agreement with the Government of Canada and the Province of Alberta to develop a new pipeline system capable of transporting approximately one million barrels of crude oil per day, aimed at strengthening Canada's energy transportation network and expanding market access, which is expected to positively impact the Canadian economy.
- Multi-Stakeholder Collaboration: The project will be advanced through a development company jointly owned by the Government of Canada, the Province of Alberta, and Pembina, with Pembina holding a 10% economic interest during construction and the potential to increase to 20% upon commercial operation, enhancing its strategic position in the energy market.
- Risk Management and Investment Framework: Pembina will evaluate its participation in the project through a disciplined investment framework, ensuring no at-risk development capital prior to the final investment decision, thereby protecting the company's financial flexibility and ensuring sustainable investment.
- Industry Experience Contribution: With over 70 years of project development experience, Pembina will provide independent insights on cost, schedule, and execution, ensuring smooth project advancement and strengthening collaboration with other stakeholders.
See More
Pembina Pipeline Advances Greenlight Electricity Center Project
- Investment Decision: Pembina Pipeline has made a positive final investment decision to advance the Greenlight Electricity Center, a 932 MW gas-fired combined cycle power generation facility aimed at powering a major data center development in Alberta.
- Capital Cost Estimate: The project has a Class 3 capital cost estimate of approximately C$4 billion, which rises to C$4.6 billion when including interest during construction and financing costs, resulting in an estimated net benefit of C$2.1 billion to Pembina.
- Long-Term Agreement: The facility will supply electricity to the data center under a long-term tolling agreement, with an anticipated in-service date in H2 2030; about 85% of the project's costs are secured under fixed-price agreements, ensuring financial stability for the project.
- Revenue Expectations: Once operational, Pembina expects the project to generate an annual run-rate adjusted EBITDA of approximately C$310 million net to the company, further enhancing its financial performance and market competitiveness.
See More
Canada-British Columbia Signs Prosperity Agreement to Unlock $200 Billion Investment
- Major Investment Commitment: The Cooperative Prosperity Agreement signed on July 2 by Prime Minister Mark Carney and Premier David Eby is expected to unlock over $200 billion in new investments, marking a significant federal commitment to British Columbia's resource economy.
- West Coast Pipeline Project: Alberta Premier Danielle Smith announced a partnership between Trans Mountain Corporation and Pembina Pipeline to construct a new west coast pipeline capable of transporting one million barrels of oil per day, with an estimated cost between $35 billion and $44 billion, expected to be designated a national interest project by October 1, 2026.
- Job Creation: The agreement and its associated projects are projected to create approximately 175,000 new jobs, highlighting the close link between resource development and economic growth, further driving Canada's economic recovery.
- Win-Win for Environment and Resources: The agreement emphasizes the dual goals of resource development and environmental protection, including a $250 million investment for whale protection, reflecting the government's commitment to balancing resource development with sustainability.
See More
Pembina Approves Investment in Greenlight Electricity Center
- Major Investment Decision: Pembina Pipeline Corporation has officially approved the final investment decision for the Greenlight Electricity Center (GLEC), with construction costs estimated at approximately C$4 billion, which will provide dedicated electricity to a hyperscale data center in Alberta, creating a long-term source of fee-based earnings and marking a significant advancement in energy infrastructure.
- Technological Innovation: The GLEC will utilize highly efficient combined cycle generation technology featuring two Siemens Energy gas turbines and two steam turbines, maximizing energy output from natural gas, which is expected to significantly improve fuel efficiency and lower operating costs, thereby enhancing overall performance.
- Stable Revenue Structure: The project will operate under a long-term Electrical Energy Supply Agreement, where customers pay for available generating capacity, reducing exposure to fluctuations in wholesale electricity prices and ensuring stable, long-term revenues that align closely with Pembina's established fee-based business model.
- Future Expansion Potential: The GLEC site has already been permitted for expansion to approximately 1,864 megawatts, allowing for additional generating capacity to meet the increasing electricity demand in Alberta, while securing long-term transportation arrangements through multiple pipeline systems enhances operational flexibility and supply security.
See More
Pembina and Partners Advance $3.2bn Greenlight Electricity Centre
- Investment Decision: Pembina Pipeline, alongside Morgan Stanley Infrastructure Partners and Kineticor Asset Management, has made a final investment decision to construct the Greenlight Electricity Centre, a C$4.6bn ($3.2bn) gas-fired power plant in Sturgeon County, Alberta, expected to be operational in H2 2030 to meet rising data center power demands.
- Financial Structure: Pembina will cover approximately C$2.3bn of the total capital expenditure, with ownership split 47.5% each for Pembina and MSIP, and 5% for Kineticor, while a long-term energy supply agreement will provide 932MW capacity to the data center, projecting an annual run-rate adjusted EBITDA of around $310m.
- Technology and Construction: The facility will utilize Siemens Energy gas and steam turbines, with about 85% of capital costs secured under fixed-price agreements, while a consortium of Aecon Group and Técnicas Reunidas will manage engineering, procurement, and construction to ensure timely delivery of the project.
- Future Expansion Potential: The project has received necessary regulatory approvals and has the potential for future expansion to 1.86GW, requiring approximately 150 million cubic feet of natural gas per day, with transport capacity secured through existing pipeline agreements, highlighting Pembina's advantageous position in the Canadian midstream energy sector.
See More
Pembina Pipeline Signs Agreement for Energy Infrastructure Initiative
- Energy Infrastructure Collaboration: Pembina Pipeline has signed a preliminary agreement with the Canadian federal and provincial governments, along with Trans Mountain, to participate in a nation-building energy infrastructure initiative aimed at expanding global market access for Canadian crude oil, highlighting the company's significant role in national energy strategy.
- Market Access Expansion: This multi-stakeholder partnership aims to strengthen Canada's energy transportation network, and while Pembina's participation is subject to certain conditions, this initiative will enhance the international competitiveness of Canadian crude oil and promote economic growth.
- Pipeline System Optimization: Trans Mountain plans to increase system capacity from 890,000 bpd to 1,190,000 bpd through its mainline optimization project, which is expected to add approximately 300,000 bpd of transportation capacity, reflecting the continued strong demand for Canadian crude oil.
- Strong Crude Oil Demand: The existing system operated at full capacity during the second and third quarters of 2026, indicating robust market demand for Canadian crude oil, further solidifying Pembina's position in the energy market.
See More
Pembina Enters Agreement with Canadian Government for Energy Infrastructure Project
- National Energy Infrastructure Initiative: Pembina has entered a non-binding agreement with the Government of Canada and the Province of Alberta to develop a new pipeline system capable of transporting approximately one million barrels of crude oil per day, aimed at strengthening Canada's energy transportation network and expanding market access, which is expected to positively impact the Canadian economy.
- Multi-Stakeholder Collaboration: The project will be advanced through a development company jointly owned by the Government of Canada, the Province of Alberta, and Pembina, with Pembina holding a 10% economic interest during construction and the potential to increase to 20% upon commercial operation, enhancing its strategic position in the energy market.
- Risk Management and Investment Framework: Pembina will evaluate its participation in the project through a disciplined investment framework, ensuring no at-risk development capital prior to the final investment decision, thereby protecting the company's financial flexibility and ensuring sustainable investment.
- Industry Experience Contribution: With over 70 years of project development experience, Pembina will provide independent insights on cost, schedule, and execution, ensuring smooth project advancement and strengthening collaboration with other stakeholders.
See More
Pembina Pipeline Advances Greenlight Electricity Center Project
- Investment Decision: Pembina Pipeline has made a positive final investment decision to advance the Greenlight Electricity Center, a 932 MW gas-fired combined cycle power generation facility aimed at powering a major data center development in Alberta.
- Capital Cost Estimate: The project has a Class 3 capital cost estimate of approximately C$4 billion, which rises to C$4.6 billion when including interest during construction and financing costs, resulting in an estimated net benefit of C$2.1 billion to Pembina.
- Long-Term Agreement: The facility will supply electricity to the data center under a long-term tolling agreement, with an anticipated in-service date in H2 2030; about 85% of the project's costs are secured under fixed-price agreements, ensuring financial stability for the project.
- Revenue Expectations: Once operational, Pembina expects the project to generate an annual run-rate adjusted EBITDA of approximately C$310 million net to the company, further enhancing its financial performance and market competitiveness.
See More
