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CALGARY - Pembina Pipeline Corporation (TSX:PPL; NYSE:PBA), a $24.47 billion energy infrastructure company currently trading near its 52-week high, and its partner Kineticor announced Monday significant progress on their proposed Greenlight Electricity Centre, a gas-fired power generation facility planned for Sturgeon County, Alberta. According to InvestingPro analysis, the company appears slightly overvalued at current levels, with a "Good" overall financial health score.
The project has secured a 907-megawatt allocation through the Alberta Electric System Operator’s large load allocation process, which has been assigned to a potential customer. This customer has entered into a Demand Transmission Service agreement with AESO, ensuring grid connection as early as 2027.
The partners have also signed a conditional purchase and sale agreement with the customer for land owned by Greenlight and Pembina. The approximately $190 million land sale, net to Pembina, is expected to close in the fourth quarter of 2025, subject to certain conditions.
Additionally, Greenlight has entered into a reservation agreement for two turbines with a power equipment manufacturer, supporting the project’s potential start-up as early as 2030.
The multi-phased facility is designed to reach up to 1,800 megawatts of capacity. The first phase, at approximately 900 megawatts, would increase natural gas demand in Alberta’s Industrial Heartland by approximately 160 million cubic feet per day, with potential to double based on the project’s ultimate capacity.
Pembina and Kineticor are targeting a final investment decision in the first half of 2026, contingent upon signing an energy supply agreement with the customer and finalizing engineering, procurement, and construction agreements.
"Greenlight is making great progress on all the pieces required to successfully bring to fruition one of the largest power projects in Canada while supporting the significant load growth coming to Alberta," said Andrew Plaunt, CEO of Kineticor, in the press release statement.
Greenlight Electricity Centre Limited Partnership is an equal partnership between Pembina and Kineticor, an OPTrust portfolio company. Pembina has maintained dividend payments for 21 consecutive years, with a current yield of 4.87%. For deeper insights into Pembina’s financial health and growth prospects, including 12 additional ProTips and comprehensive valuation metrics, visit InvestingPro.
In other recent news, Pembina Pipeline Corporation announced a significant development regarding the Alliance Pipeline. A negotiated settlement was approved by the Canada Energy Regulator, establishing a tolling structure for the next decade. This new agreement, effective from November 1, 2025, through October 31, 2035, includes revised term-differentiated tolls, which are projected to lower existing long-term firm tolls by an average of 14 percent on a volume-weighted basis. Additionally, Raymond James has raised its price target for Pembina Pipeline to C$64, maintaining an Outperform rating. Despite this positive outlook, Pembina has been the worst-performing company in Raymond James’ coverage universe due to concerns about the Alliance Pipeline, the deferral of the Dow project, and competition from KEY. These recent developments reflect ongoing adjustments and strategic decisions within Pembina Pipeline Corporation.
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