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Pembina Pipeline Announces Positive Final Investment Decision on the Greenlight Electricity Centre

TSX:PPLPBATSX:ARE
  • Pembina Pipeline Corporation, Morgan Stanley Infrastructure Partners, & Kineticor announced a positive final investment decision for the 932 MW Greenlight Electricity Centre (GLEC) in Sturgeon County, Alberta.
  • GLEC is a gas-fired combined cycle power facility designed to provide dedicated, long-term electricity to a major data centre development, the first of its kind in Canada.
  • The project aligns with Pembina's 3C's Strategy to capture volumes, connect markets, & catalyze new demand platforms by creating stable cash flows & increasing business diversification.
  • Anticipated in-service date for the project is the second half of 2030, with potential to expand to 1,864 MW.
  • Total project cost is estimated at approximately $4.6 billion, including $0.6 billion for interest during construction & financing costs.
  • Pembina's net investment in GLEC is approximately $2.1 billion after accounting for land sale proceeds to the customer.
  • The project is expected to generate annual run-rate adjusted EBITDA of approximately $310 million, net to Pembina.
  • Approximately 85 percent of the project cost is secured under fixed-price agreements, including engineering, procurement, construction, & turbine purchases from Siemens Energy.
  • Greenlight is owned 47.5 percent by Pembina, 47.5 percent by MSIP, & 5 percent by Kineticor following MSIP's acquisition of a majority interest from OPTrust.
  • Financing includes approximately 60 percent asset-level debt & 40 percent equity, with capital spending in 2026-2027 funded by debt & 2028-2030 spending funded by partner equity.
  • GLEC will require approximately 150 million cubic feet per day of natural gas, with transportation capacity secured via Pembina's Alliance Heartland Expansion & TC Energy systems.
  • Revenue will be generated through a long-term tolling agreement providing capacity payments & usage-based payments for fuel, operations, & maintenance.
  • The project is expected to catalyze intra-basin natural gas demand, benefiting Pembina's existing gas processing, transportation, & NGL businesses.
  • Future expansion opportunities include a second phase of generation & additional power-to-data centre projects aligned with Alberta's "bring your own power" strategy.
  • All major regulatory approvals have been obtained, & the project supports the creation of thousands of jobs & significant provincial revenue.