Pembina Pipeline Corporation Announces Positive Final Investment Decision on an Integrated Petrochemical Facility - Seite 2

CKPC has a detailed Class II level capital cost estimate of $4.5 billion (gross), including interest during construction. Included in this estimate is $4 billion (gross) for the PDH and PP plants and $0.5 billion for certain supporting facilities.  Pembina's net investment of $2.5 billion represents a 50 percent interest in CKPC, which will own the PDH and PP plants, and a 100 percent directly-owned interest in the supporting facilities under an agreement between Pembina and CKPC whereby Pembina will own the facilities and provide services under a long-term, take-or-pay arrangement. 

Pembina has secured in excess of 40 percent of its expected Adjusted EBITDA from this project through a portfolio of long-term, primarily take-or-pay, fee-for-service and other similar commercial arrangements with third parties, having a weighted average tenor of approximately 14 years, with the majority of counterparties being investment grade. The arrangements entered into to date support development of this project firmly within Pembina's publicly stated guardrails.  Further, based on ongoing negotiations currently underway, Pembina is confident in achieving its stated goal of achieving a minimum of 50 percent fee-for-service contribution to Adjusted EBITDA.  

The PDH/PP Facility is expected to be in-service in mid-2023, subject to environmental and regulatory approvals, and is expected to generate annual run-rate Adjusted EBITDA of $275 to $350 million, net to Pembina.

CKPC is pursuing asset-level debt financing for 50 percent of the jointly-owned facilities, with the remaining 50 percent to be financed through equity contributions from both partners. Pembina intends to finance the supporting facilities consistent with its long-term financing strategy of equal amounts of debt and equity.  Pembina continues to anticipate equity contributions will be funded with cash flow after dividends.

In addition, CKPC has been awarded $300 million of royalty credits from the Alberta government, of which CKPC has, to date, entered into agreements with Alberta hydrocarbon producers to monetize more than 80 percent over the first several years of operation of the PDH/PP Facility.  

"Sanctioning of the PDH/PP Facility is the largest step taken to date by Pembina in executing its strategy to secure global market prices for customers' hydrocarbons produced in western Canada, and provides another exciting platform for future growth," said Mick Dilger, Pembina's President and Chief Executive Officer. Mr. Dilger added, "Today's announcement is the culmination of many years of hard work with our partner to develop a project that is well positioned to capitalize on Alberta's abundant supply of propane and undertake value-added processing that benefits all of Pembina's stakeholders, the Province of Alberta and indeed all of Canada.  It has been a pleasure to work with PIC and our strong partnership has helped mitigate the risks of entry into this new market segment."