Tuesday, August 17, 2021

Pembina update puts focus on Haisla partnership, deferral of Watson Island expansion decision

The Pembina Pipeline Corporation provided a second quarter update for investors earlier this month, offering up some financial data for their review, as well as an update on some of their future plans, including a pair of Northwest BC investment.

On the financial side of the review, Pembina reported earnings of $254 million for the second quarter, two percent lower than the same period in the prior year. Cash flow from operating activities of $584 million for the second quarter was a decrease of nine percent over the same period in the prior year. 

The decrease was driven primarily by an increase in taxes paid due to higher tax installments given the COVID-related deferrals in 2020, an increase in net interest paid, and a decrease in operating results.

As they look ahead to the remainder or 2021 and beyond, the Alberta energy company outlined where they are when it comes to two high profile expansion projects, with one note of interest for those following their investment in the Watson Island LPG Terminal.

An overhead look at the Watson Island LPG facility 
from their supply chain partner at CN Rail

"Further decisions on Phase VIII Peace Pipeline Expansion and Prince Rupert Terminal Expansion are expected later this year and early next year, respectively. 

The same outlook also supports our confidence in the development of a portfolio of growth projects totalling more than $5 billion with compelling rates of return."

Prince Rupert Terminal Expansion remains deferred. Engineering of the expansion is well advanced and Pembina expects to make a final investment decision in the first quarter of 2022.

In their most recent data release, the Prince Rupert Port Authority charted the volume of shipments out of the Watson Island facility as of July. 

The August overview also outlined some of their enthusiasm for a proposed LNG project in the Northwest and their partnership with the Haisla Nation in Kitamaat towards the Cedar LNG project.

Pembina recently announced three significant and transformational partnerships that combine fundamentally strong business opportunities with compelling environmental, social and governance ("ESG") attributes: a partnership with the Haisla Nation to develop the proposed Cedar LNG Project.

During the second quarter of 2021, Pembina announced a strategic partnership agreement with the Haisla First Nation to develop the proposed Cedar LNG Project, a floating LNG facility strategically positioned to leverage Canada's abundant natural gas supply and British Columbia's growing LNG infrastructure to produce industry-leading low–carbon, low-cost Canadian LNG for overseas markets. 

The Cedar LNG Project will be the largest First Nation-owned infrastructure project in Canada and will have one of the cleanest environmental profiles in the world

The Haisla led project and two other energy infrastructure initiatives in Western Canada were hailed as part of their plans for development of Canadian energy from reliable Canadian sources.

In their notes from earlier this month, Pembina notes that together they will further enable the responsible development of Canadian energy, strengthening Canada's reputation and providing a decades-long runway to continued development of oil and gas resources.

"We are proud of our work with our communities and our role in creating meaningful solutions that can deliver results that matter."

The full Second Quarter update can be reviewed here

More notes on Pembina in Prince Rupert can be examined from our archive page.


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