Pembina Pipeline Corp PBA

Pembina: Cedar LNG Adds Important Growth Avenue in Latter Half of Decade

The significant progress Pembina has made on Cedar LNG will make a final investment decision by mid-2024 very likely, and it will add an important growth avenue to the firm in the latter half of the decade. The 20-year take-or-pay agreement for about half of the capacity now, and another similar contract expected later, supports attaching a wide moat to this particular asset. We would expect a mid-2024 investment decision to translate to an in-service date in late 2028. With all material permits obtained and the shared 50/50 ownership with the Haisla Nation, we would not expect any regulatory or stakeholder pushback, as the focus will be on obtaining the needed capital for the investment and signing the final contract for the remaining capacity.