Canada’s Pembina Pipeline delivers record Q2 EBITDA
Canadian infrastructure company Pembina Pipeline reported record Q2 EBITDA on August 4, reflecting higher natural gas liquids (NGL) and crude oil prices and margins and increased volumes on key systems.
Adjusted EBITDA for the second quarter rose to C$849mn (US$656mn) from C$778mn in the comparable quarter last year, while net earnings increased to C$418mn from C$254mn.
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During the quarter, Pembina advanced its contracting efforts on the Alliance Pipeline, which delivers rich gas to the Chicago market hub and to linkages to key Gulf Coast LNG markets. Three open seasons were offered, the largest of which resulted in 270mn ft3/day of incremental long-term firm service starting in November, while the other two were for short-term firm service.
Over 90% of the capacity on the 1.6bn ft3/day pipeline has now been contracted for both the current gas year, which ends October 31, 2022, and for the next gas year, Pembina said.
Pembina also executed a long-term agreement with Tourmaline Oil, Canada’s largest natural gas producer, which commits significant volumes from Tourmaline’s latest multi-phase Montney shale gas development to Pembina’s infrastructure. Together with two similar agreements with other producers executed earlier, Pembina has secured transportation, fractionation and marketing rights “to a significant portion of forecasted future growth in the…Montney,” it said.
Finally, Pembina said it has received all regulatory approvals for the proposed combination of its western Canadian gas processing assets with those of KKR, creating a new joint venture entity dubbed, for now, Newco.
As part of the combination, and to satisfy competition concerns, Pembina and KKR will divest a 50% non-operated interest in Keyera’s Key Access Pipeline System, a natural gas liquids pipeline under construction between Keyera’s Pipestone gas plant northwest of Grande Prairie to its Fort Saskatchewan fractionation and marketing hub near Edmonton, to Newco.