Pembina Pipeline Announces Growth Projects, Sets 2018 Capex
Zacks Investment Research | Nov 30, 2017 08:15PM ET
Energy transportation and service provider Pembina Pipeline Corporation (NYSE:PBA) recently approved the construction of two new capital projects worth around $330 million. The projects include Prince Rupert LPG Export Terminal and North Central Liquids Hub.
Construction of Prince Rupert LPG Export Terminal is likely to cost around 210 million with LPG capacity of around 25,000 barrels a day. Prince Rupert terminal will procure its LNG supply from Pembina Pipeline’s Redwater fractionation complex. Subject to necessary approvals, the project is expected to come to service by mid-2020. The project is expected to create around 200 jobs.
The company has also approved the development of North Central Liquids Hub Project in which Pembina holds around 46% interest. The capital cost of the project for Pembina Pipeline is likely to be around 120 million and is expected to become operational in late 2018. North Centrals Liquids Hub will get connected to the pipeline systems of the company.
Pembina Pipeline has planned a total capital budget of around $1.01 billion for 2018. The company plans to spend around $420 million and $200 million in its conventional pipelines and midstream business, respectively. It further intends to invest around 136 million in gas business and $132 million in new facilities under its joint venture partnerships. It will also allocate part of the capex toward oil Sands business and other value chain extension projects.
Pembina Pipeline which acquired Veresen, Inc. this year is expected to gain various commercial and financial synergies in 2018. That along with the solid project execution will result in the company to deliver an EBITDA of around $2.1 billion in 2018. The company’s large scale and diversified asset base will help it drive growth in the coming years.
Headquartered in Canada, Pembina Pipeline operates in four major segments — Conventional Pipelines, Gas Services, Midstream & Marketing and Oil Sands and Heavy Oil. The company presently carries a Zacks Rank #4 (Sell).
Pembina Pipeline Corp. Price
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.