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CALGARY, Alberta, June 17, 2021 — Pembina Pipeline Corporation (“Pembina” or “PPL”) (TSX: PPL; NYSE: PBA) and TC Energy Corporation (“TC Energy”) (TSX, NYSE: TRP) are pleased to share their plan to jointly develop a world-scale carbon transportation and sequestration system which, when fully constructed, will be capable of transporting more than 20 million tonnes of CO2 annually. By leveraging existing pipelines and a newly developed sequestration hub, the Alberta Carbon Grid (“ACG” or the “Project”) represents the infrastructure platform needed for Alberta-based industries to effectively manage their emissions and contribute positively to Alberta’s lower-carbon economy and create sustainable long-term value for Pembina and TC Energy stakeholders.
Designed to be an open-access system, the ACG will serve as the backbone of Alberta’s emerging carbon capture utilization and storage (“CCUS”) industry, connecting the Fort McMurray region, the Alberta Industrial Heartland, and the Drayton Valley region to key sequestration locations and delivery points across the province, and serving multiple industries.
For Canada to achieve its enhanced climate targets, including a 40-45% reduction in greenhouse gas emissions below 2005 levels by 2030, CCUS technology and infrastructure will need to play a vital role. Pembina and TC Energy are uniquely positioned to take a leadership role in the transportation of CO2 given their collective skills and extensive network of pipeline infrastructure. As a hub-based infrastructure solution accessible to Alberta’s largest industrial emitters across industries, ACG will pave the way for Canada to successfully meet its emissions reduction objectives and provides a tangible example of Pembina and TC Energy’s commitment to energy diversification, industry collaboration and a lower carbon future.
Support for the Alberta Carbon Grid
“Carbon capture, utilization and storage will lower emissions, create jobs, and increase our competitiveness,” said the Honourable Seamus O’Regan Jr., Canada’s Minister of Natural Resources. “Congratulations to Pembina and TC Energy for coming together with an integrated CO2 transportation and storage infrastructure solution to lower emissions in Alberta. This is how we get to net-zero.”
“Alberta is already a global leader in advancing and investing in CCUS technology with over $1.24 billion committed to-date. CCUS is one of the most promising forms of emissions-reduction technology – both in terms of cost-effectiveness and tangible environmental outcomes. On-going innovation and partnerships are critical to the success of both industry and government in reaching our economic and environmental goals,” said the Honourable Jason Nixon, Minister of Environment and Parks.
“Our government is committed to the development of the emerging CCUS industry in our province. Our province’s energy industry is vital to achieving Canada’s GHG reduction goals and Alberta companies are global leaders in reducing emissions. By working together to bring forward world-class solutions, innovative companies like Pembina and TC Energy are leading the way to our lower carbon future,” said the Honourable Sonya Savage, Alberta’s Minister of Energy.
“For more than 65 years, Pembina’s integrated network of energy transportation and midstream assets has provided a full spectrum of services to Alberta’s energy sector, helping our customers connect to high-value markets and take advantage of opportunities for diversification and growth,” said Mick Dilger, Pembina’s President and Chief Executive Officer. “The ACG highlights our commitment to customers by helping them solve problems and creating new services; communities, by reducing emissions and using existing infrastructure to reduce the impact to the land; employees, through development of an entirely new line of business and job opportunities; and shareholders through attractive incremental capital investment. Pembina is proud of our commitment to all stakeholders and pleased to leverage our expertise to provide a key market solution toward a lower carbon economy with another industry leading partner.”
“It is innovative partnerships like this that excite me about our collective energy future,” said François Poirier, Chief Executive Officer and President of TC Energy. “Industry players collaborating to leverage our existing energy infrastructure and expertise to support meaningful emission reductions and reduce our carbon footprint is a great example of how we can secure meaningful new investment opportunities, serve current and future customers and achieve operational excellence while continuing to safely and responsibly deliver the energy people need.”
The Alberta Carbon Grid
Through redeployment, retrofits using proven technology, recapitalization, and optimization of surplus capacity across our collective pipeline systems, including, subject to closing of the transaction, through Pembina’s proposed acquisition of Inter Pipeline Ltd. (“IPL”), ACG is designed to connect the province’s largest sources of industrial emissions to a sequestration location north-east of Redwater, Alberta. The principal segments include:
Key Benefits of the Alberta Carbon Grid
Advancing ACG is also an important step in both Pembina’s and TC Energy’s commitment to reduce greenhouse gas emissions intensity across our businesses while supporting emissions abatement across the industry. Given the shared capabilities in this area, Pembina and TC Energy recognize they must take a leadership role in reducing GHG emissions while proudly supplying the world with affordable and reliable energy.
Pembina is a leading transportation and midstream service provider that has been serving North America’s energy industry for more than 65 years. Pembina owns an integrated system of pipelines that transport various hydrocarbon liquids and natural gas products produced primarily in western Canada. Pembina also owns gas gathering and processing facilities; an oil and natural gas liquids infrastructure and logistics business; and is growing an export terminals business. Pembina’s integrated assets and commercial operations along the majority of the hydrocarbon value chain allow it to offer a full spectrum of midstream and marketing services to the energy sector. Pembina is committed to identifying additional opportunities to connect hydrocarbon production to new demand locations through the development of infrastructure that would extend Pembina’s service offering even further along the hydrocarbon value chain. These new developments will contribute to ensuring that hydrocarbons produced in the Western Canadian Sedimentary Basin and the other basins where Pembina operates can reach the highest value markets throughout the world.
Purpose of Pembina:
To be the leader in delivering integrated infrastructure solutions connecting global markets:
Pembina is structured into three Divisions: Pipelines Division, Facilities Division and Marketing & New Ventures Division.
Pembina’s common shares trade on the Toronto and New York stock exchanges under PPL and PBA, respectively. For more information, visit www.pembina.com.
About TC Energy
We are a vital part of everyday life — delivering the energy millions of people rely on to power their lives in a sustainable way. Thanks to a safe, reliable network of natural gas and crude oil pipelines, along with power generation and storage facilities, wherever life happens — we’re there. Guided by our core values of safety, responsibility, collaboration and integrity, our 7,500 people make a positive difference in the communities where we operate across Canada, the U.S. and Mexico.
TC Energy’s common shares trade on the Toronto (TSX) and New York (NYSE) stock exchanges under the symbol TRP. To learn more, visit us at TCEnergy.com.
For further information contact:
|Pembina Pipeline Corporation||TC Energy|
Vice President, Capital Markets
e-mail: [email protected]
|Investor & Analyst Inquiries:
David Moneta / Hunter Mau
403-920-7911 or 800-361-6522
Jaimie Harding / Suzanne Wilton
403-920-7859 or 800-608-7859
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