Pembina and Kineticor Push Forward the Greenlight Electricity Project

Pembina Pipeline Corporation PBA, in partnership with Kineticor, an OPTrust portfolio company, has announced major developments regarding the Greenlight Electricity Center project, an ambitious multi-phased gas-fired combined cycle power generation facility in Sturgeon County, Alberta. With a capacity of up to 1,800 megawatts (“MW”), this project stands as a cornerstone in Alberta’s quest to become a leading innovation hub in North America’s energy landscape.

Strategic Importance of the Greenlight Electricity Center

The Greenlight Electricity Center is designed to provide a stable, abundant and competitive power supply that aligns with Alberta’s favorable investment and regulatory environment. This positions the province uniquely to harness the momentum needed to lead innovation infrastructure efforts across the continent. Pembina and Kineticor together leverage their combined expertise to ensure this facility delivers reliable, scalable and cost-effective energy solutions to meet the growing demands of Alberta’s evolving economy.

Alberta’s growing industrial sector, particularly in the Industrial Heartland region, requires increased energy capacity to support expansion and innovation. The Greenlight project responds directly to this demand by offering an energy platform that not only supports today’s needs but also anticipates growth. Pembina’s integration of this power facility within its existing infrastructure creates significant synergies, particularly by enhancing natural gas demand and expanding the pipeline’s value chain.

Harnessing Natural Gas for Economic Growth

The initial stage of the Greenlight Electricity Center, anticipated to generate around 900 MW, is projected to raise natural gas demand in Alberta by nearly 160 million cubic feet per day (mmcf/d). As the project expands to its full capacity of 1,800 MW, this demand could potentially increase to approximately 320 mmcf/d. This growing requirement presents a valuable opportunity for Pembina’s Alliance Pipeline system to expand and effectively deliver natural gas to the facility.

This increase in natural gas usage ties into Pembina’s broader strategy of expanding demand for associated liquids production and leveraging long-term contracts with investment-grade customers. Such developments solidify Pembina’s position as a pivotal player in Alberta’s energy market, supporting both upstream and downstream growth through enhanced infrastructure connectivity.

Recent Milestones Driving Commercialization Forward

The Greenlight Electricity Center recently achieved several key milestones crucial to its advancement toward full commercialization. Securing a 907 MW allocation from the Alberta Electric System Operator (“AESO”) large load allocation process marks a critical step. This allocation, already assigned to a potential customer, allows for innovation infrastructure development to commence well ahead of the project’s full operational launch.

In tandem with securing this allocation, the customer has entered into a Demand Transmission Service agreement with AESO, guaranteeing grid connection and power access by 2027. This agreement is pivotal in providing the project with a clear path toward integration into Alberta’s electrical transmission system, ensuring operational readiness aligned with regional demand growth.

Pembina and Kineticor have also executed a conditional purchase and sale agreement for land ownership, valued at approximately $190 million (net to the former), facilitating the project's physical footprint. Part of these proceeds will be reinvested into the ongoing development of the Greenlight Electricity Center, while the remainder will help reduce Pembina’s outstanding debt, demonstrating a balanced financial approach to growth.

Securing Critical Equipment and Timelines

Securing major equipment is vital to the success of any large-scale power project. Greenlight has finalized a reservation agreement for two turbines with a reputable Original Equipment Manufacturer, providing certainty on equipment availability and delivery schedules. This agreement underpins the project’s timeline, supporting the targeted start-up as early as 2030.

By locking in equipment early, the project mitigates supply-chain risks and positions itself advantageously to meet ambitious deadlines. This foresight strengthens stakeholder confidence and ensures that the Greenlight Electricity Center remains on track toward its final investment decision (“FID”).

Path to Final Investment Decision and Outlook

The FID, anticipated in the first half of 2026, remains contingent upon finalizing key agreements, including the energy supply contract with the customer and engineering, procurement and construction contracts. Both workstreams have progressed significantly, reflecting the partners’ commitment to delivering a world-class energy asset.

Pembina and Kineticor are unwavering in their focus to bring the Greenlight project from concept to reality. The project is poised to be a catalyst for Alberta’s economic growth, attracting substantial investment, fostering innovation across multiple sectors and enabling sustainable long-term energy solutions.

Expanding Pembina’s Energy Ecosystem

Beyond the immediate impact on power generation, the Greenlight Electricity Center exemplifies Pembina’s strategy to extend its natural gas value chain into new demand markets. The facility’s integration with Pembina’s core infrastructure amplifies opportunities for natural gas transportation and liquids handling, enhancing overall asset utilization and market reach.

The partnership with Kineticor enriches this approach by bringing significant power development expertise to the table, complementing Pembina’s operational strengths. Together, the partners are positioned to deliver a power project that balances environmental responsibility, economic benefit and innovation leadership.

Conclusion: Pioneering Alberta’s Energy Innovation Landscape

Pembina’s leadership in advancing the Greenlight Electricity Center project signals a transformative moment for Alberta’s energy future. The facility’s scale, strategic location and integrated approach to natural gas utilization highlight its potential as a landmark infrastructure development. The Greenlight Electricity Center is not merely a power project; it is a vital instrument for securing Alberta’s position as a dominant force in North America’s energy innovation for decades to come.

PBA's Zacks Rank & Key Picks

Currently, PBA has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some better-ranked stocks like Canadian Natural Resources Limited CNQ, currently sporting a Zacks Rank #1 (Strong Buy), TechnipFMC plc FTI and Oceaneering International OII, holding a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Canadian Natural is one of Canada's largest independent oil and natural gas producers, with operations spanning exploration, development and production across North America, the North Sea and Offshore Africa. The company focuses on a diversified portfolio of assets, including oil sands, conventional crude oil, natural gas and thermal in-situ operations. Canadian Natural is valued at $66.43 billion.  

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