Pembina Pipeline sees Q3 earnings bump
Canadian midstream infrastructure company Pembina Pipeline said November 5 it had Q3 2024 earnings of C$385mn, up from C$346mn a year ago, while gross profit rose to C$747mn from C$659mn in Q3 2023.
Adjusted EBITDA for the quarter was slightly lower, at C$1.019bn versus C$1.021bn, reflecting stable contributions from Pipelines and Marketing & New Ventures and a modest 2% increase from Facilities.
Its “solid” Q3 results, Pembina said, set the company on a path towards a record financial year in 2024, reflecting the positive impact of recent acquisitions, the consolidation of Pembina’s ownership of all the assets of Aux Sable’s natural gas liquids value chain, including the Alliance pipeline from western Canada to Aux Sable’s fractionation facilities near Chicago.
On-shore construction activities at the Cedar LNG project on BC’s northern coast near Kitimat, including site clearing and civil works, are underway, Pembina said, as is detailed engineering on Cedar’s floating LNG facility, with construction expected to begin in mid-2025.
Pembina holds a 49.9% interest in the estimated US$4bn project, which will produce about 3.3mn tonnes/year of LNG. The Haisla First Nation, on whose traditional territory Cedar LNG is being developed, holds the remaining interest in the project.
Canadian Montney producer ARC Resources will supply 200mn ft3/day of feed gas to Cedar under a 1.5mn tonnes/year 20-year liquefaction agreement. Pembina and Cedar LNG have an identical bridging agreement covering the remaining 1.5mn tonnes/year of capacity, with Pembina planning to assign its capacity to a third party.
“This represents the only capacity currently available for contracting from a sanctioned west coast LNG project, and as such, there is broad interest in the capacity,” Pembina said. “As a function of the interest from multiple counterparties, Pembina expects this process to extend into 2025.”
Cedar LNG is expected to be in service in late 2028, Pembina said.