Pembina Pipeline's Cedar LNG On Track For Final Investment Decision In June: Details

Pembina Pipeline Corporation PBA disclosed the progress on its proposed Cedar liquefied natural gas (LNG) project and provided a multi-year outlook at its 2024 investor day yesterday.

The company disclosed that its proposed Cedar LNG project, estimated at $3.4 billion, continues to be on track. It expects a final investment decision (FID) in June 2024.

Cedar, a joint venture between Haisla First Nation and Pembina, is expected to be completed in 2028 and produce 3.3 million tons of LNG annually. Post completion, Cedar will be one of Canada’s first LNG export terminals.

Senior Vice President and Corporate Development Officer Stuart Taylor said, “We do have all key regulatory permits. Cedar financing has been launched and is on target for that FID timing…We have very well defined plans that have been completed and the successful execution of cedar LNG is well on its way,” reported Reuters.

Apart from this, Pembina’s core business positions it to benefit from multi-year volume growth expected through the balance of the decade led by transformational developments.

This includes completion of the Trans Mountain Pipeline expansion, new West Coast LNG and NGL export capacity, and new petrochemical facilities creating significant demand for ethane and propane.

Outlook: The company expects 4% to 6% compound annual growth of fee-based adjusted EBITDA per share and C$2.2 billion to C$4.0 billion of capital expenditures and contributions to equity-accounted investees through 2026.

For FY24, Pembina continues to expect adjusted EBITDA of C$4.05 billion-C$4.30 billion.

This month, the company approved the renewal of Pembina’s normal course issuer bid to purchase up to five percent of its issued and outstanding common shares.

Investors can gain exposure to the stock via VanEck Energy Income ETF EINC.

Price Action: PBA shares are down 0.32% at $36.98 at the last check Friday.

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