Pembina Pipeline Corp T.PPL.PR.C

Highlights

[Dibah420]

N.B. The $3.4B is  fixed-cost, lump-sum.

Highlights

• Commercial Offtake Secured – a 20-year take-or-pay liquefaction tolling services agreement with a fixed toll has been signed with ARC Resources Ltd. ("ARC Resources") for 1.5 million tonnes per annum ("mtpa"). In addition, Pembina has executed an identical bridging agreement with Cedar LNG for 1.5 mpta. Pembina intends to assign its capacity to a third-party following a positive FID, with commercial offtake discussions continuing with multiple other customers.

• Issued Notice to Proceed – in order to maintain schedule, a NTP has been issued to the EPC contractors to continue the engineering, procurement and construction for the design, fabrication and delivery of the Project’s floating liquefied natural gas ("LNG") production unit.

• Capital Costs – Cedar LNG has completed a detailed Class III level capital cost estimate of approximately US$3.4 billion (gross), including US$2.3 billion (gross), or approximately 70 percent, which is under a fixed-price, lump-sum agreement.

• Advancing Pembina’s Strategic Priorities – subject to a positive FID, Cedar LNG is expected to generate annual run-rate adjusted EBITDA of US$200 million to US$260 million, net to Pembina, derived from low risk, long-term, take-or-pay cash flows, together with potential incremental cargos and marketing upside, while further extending Pembina’s value chain to access resilient markets and increasing its exposure to lighter hydrocarbons.