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Pembina (PBA) Targets June Investment Decision for Cedar LNG
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Pembina Pipeline Corporation (PBA - Free Report) announced significant progress in the development of its $4 billion Cedar LNG project, a joint venture with the Haisla First Nation. This ambitious project aims to produce 3.3 million tons of liquefied natural gas (“LNG”) annually, with completion slated for 2028. Pembina has secured all key regulatory permits and has well-defined plans in place, according to Senior Vice President Stuart Taylor. The final investment decision (“FID”) is expected by June.
Key Developments in the Cedar LNG Project
Regulatory Approvals Secured
The Cedar LNG project has successfully obtained all necessary regulatory permits, marking a key milestone in its development. This accomplishment highlights the project's adherence to environmental and safety standards, clearing the path for its progress.
Planned Production Capacity
Once completed in 2028, the Cedar LNG facility will have the capacity to produce 3.3 million tons of LNG per year. This substantial output will enhance Pembina's position in the global LNG market and contribute to meeting growing energy demands.
Capital Spending and EBITDA Growth
The oil and gas storage and transportation company has reiterated its financial expectations, projecting 4-6% total compound annual growth in fee-based adjusted EBITDA per share through 2026. The company also anticipates capital spending between $2.2 billion and $4 billion during this period, which includes investments in the Cedar LNG project.
Canada's LNG Export Potential
Despite being the world's sixth-largest natural gas producer, Canada lagged in establishing a robust LNG export industry. The Cedar LNG project represents a strategic step toward capitalizing on Canada's vast natural gas resources. By 2028, the project aims to position Canada as a key player in the global LNG market, reducing dependency on other major gas-producing nations.
Sustainable Energy Production
Cedar LNG is designed with sustainability in mind, employing advanced technologies to minimize environmental impact. The project will adhere to stringent environmental standards by ensuring responsible energy production.
Community Engagement and Support
Pembina's collaboration with the Haisla First Nation highlights a commitment to community engagement and support. The project will provide long-term benefits to local communities, including economic opportunities and infrastructure development.
Conclusion
The Cedar LNG project represents a significant advancement for PBA and its joint venture partner, the Haisla First Nation. With all key regulatory permits in place and well-defined plans, the project is well on its way to achieving its goals. The expected final investment decision in June marks a critical step toward realizing this $4 billion venture, which will play a key role in the global LNG market and contribute to sustainable energy solutions.
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AROC, together with its subsidiaries, works as an energy infrastructure company in the United States. The company operates under two segments — Contract Operations and Aftermarket Services.
Headquartered in New York, Hess is valued at $48.29 billion. It is a leading global independent energy company focused on the exploration and production of crude oil and natural gas.
The company currently pays a dividend of $1.75 per share, or 1.12%, on an annual basis. It conducts production operations primarily in the United States, Guyana, and Malaysia, while exploration activities principally offshore Guyana, the U.S. Gulf of Mexico, and offshore Suriname and Canada.
Sunoco is valued at $5.41 billion. It is a major wholesale motor fuel distributor in the United States, distributing over 10 fuel brands through long-term contracts with more than 10,000 convenience stores, ensuring consistent cash flow.
SUN’s extensive distribution network across 40 states provides a robust and reliable source of income, and the Brownsville terminal expansion will add to its revenue diversification.
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Pembina (PBA) Targets June Investment Decision for Cedar LNG
Pembina Pipeline Corporation (PBA - Free Report) announced significant progress in the development of its $4 billion Cedar LNG project, a joint venture with the Haisla First Nation. This ambitious project aims to produce 3.3 million tons of liquefied natural gas (“LNG”) annually, with completion slated for 2028. Pembina has secured all key regulatory permits and has well-defined plans in place, according to Senior Vice President Stuart Taylor. The final investment decision (“FID”) is expected by June.
Key Developments in the Cedar LNG Project
Regulatory Approvals Secured
The Cedar LNG project has successfully obtained all necessary regulatory permits, marking a key milestone in its development. This accomplishment highlights the project's adherence to environmental and safety standards, clearing the path for its progress.
Planned Production Capacity
Once completed in 2028, the Cedar LNG facility will have the capacity to produce 3.3 million tons of LNG per year. This substantial output will enhance Pembina's position in the global LNG market and contribute to meeting growing energy demands.
Capital Spending and EBITDA Growth
The oil and gas storage and transportation company has reiterated its financial expectations, projecting 4-6% total compound annual growth in fee-based adjusted EBITDA per share through 2026. The company also anticipates capital spending between $2.2 billion and $4 billion during this period, which includes investments in the Cedar LNG project.
Canada's LNG Export Potential
Despite being the world's sixth-largest natural gas producer, Canada lagged in establishing a robust LNG export industry. The Cedar LNG project represents a strategic step toward capitalizing on Canada's vast natural gas resources. By 2028, the project aims to position Canada as a key player in the global LNG market, reducing dependency on other major gas-producing nations.
Sustainable Energy Production
Cedar LNG is designed with sustainability in mind, employing advanced technologies to minimize environmental impact. The project will adhere to stringent environmental standards by ensuring responsible energy production.
Community Engagement and Support
Pembina's collaboration with the Haisla First Nation highlights a commitment to community engagement and support. The project will provide long-term benefits to local communities, including economic opportunities and infrastructure development.
Conclusion
The Cedar LNG project represents a significant advancement for PBA and its joint venture partner, the Haisla First Nation. With all key regulatory permits in place and well-defined plans, the project is well on its way to achieving its goals. The expected final investment decision in June marks a critical step toward realizing this $4 billion venture, which will play a key role in the global LNG market and contribute to sustainable energy solutions.
Zacks Rank and Key Picks
Currently, PBA carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Archrock, Inc. (AROC - Free Report) ,sporting a Zacks Rank #1 (Strong Buy), and Hess Corporation (HES - Free Report) and Sunoco LP (SUN - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Archrock is valued at $3.13 billion. The company currently pays a dividend of 66 cents per share, or 3.30%, on an annual basis.
AROC, together with its subsidiaries, works as an energy infrastructure company in the United States. The company operates under two segments — Contract Operations and Aftermarket Services.
Headquartered in New York, Hess is valued at $48.29 billion. It is a leading global independent energy company focused on the exploration and production of crude oil and natural gas.
The company currently pays a dividend of $1.75 per share, or 1.12%, on an annual basis. It conducts production operations primarily in the United States, Guyana, and Malaysia, while exploration activities principally offshore Guyana, the U.S. Gulf of Mexico, and offshore Suriname and Canada.
Sunoco is valued at $5.41 billion. It is a major wholesale motor fuel distributor in the United States, distributing over 10 fuel brands through long-term contracts with more than 10,000 convenience stores, ensuring consistent cash flow.
SUN’s extensive distribution network across 40 states provides a robust and reliable source of income, and the Brownsville terminal expansion will add to its revenue diversification.