Canada’s Pembina Pipeline earnings higher in Q3
Pembina Pipeline, a Canadian midstream infrastructure company, said November 3 it had Q3 2022 earnings of C$1.83bn (US$1.34bn), up from earnings in the year-ago period of C$588mn.
The earnings this year included a C$1.1bn gain on the sale of assets related to the formation earlier this year of Pembina Gas Infrastructure (PGI), in which Pembina and global investment platform KKR combined their respective western Canadian gas processing assets into a single joint venture company.
Adjusted EBITDA increased to C$967mn from C$850mn, while adjusted cash flow from operating activities declined to C$574mn from C$786mn.
Total volumes through Pembina’s systems were essentially unchanged, at 3.4mn barrels of oil equivalent (boe)/day, as increased volumes on conventional systems were offset by reduced volumes on other systems, notably the Nipisi and Mitsue oil pipelines in Alberta and the Ruby gas pipeline in the US.
The 3mn metric tons/year Cedar LNG project in Kitimat, on BC’s northern coast, which Pembina is pursuing in partnership with the Haisla Nation, is under review by the BC Environmental Assessment Office. Work with potential engineering, procurement and construction (EPC) contractors is underway, with lump-sum bids expected in Q4 2022 and a final investment decision anticipated by Q3 2023.