Pembina Pipeline Corporation (TSE:PPL; NYSE:PBA) saw its stock climb approximately 1.6% in Toronto trading on Friday, following the announcement of a major investment in a gas-fired power plant designed to meet growing data-center energy demand. The U.S.-listed shares were not traded due to the Independence Day holiday.
The Calgary-based energy infrastructure company revealed a C$2.1 billion net investment in the Greenlight Electricity Centre, a 932-megawatt facility in Alberta developed in partnership with Morgan Stanley Infrastructure Partners and Kineticor Asset Management. The project will supply power to a major data-center operator under a long-term tolling agreement. Pembina expects annual run-rate adjusted EBITDA of roughly C$310 million from its 47.5% stake, implying an EBITDA-to-net-investment margin of approximately 14.8% before financing costs, depreciation, taxes, or potential cost changes.
Greenlight represents a strategic pivot for Pembina, offering a clear near-term return profile compared to its conditional involvement in a proposed West Coast oil pipeline. The power project is expected to add about 150 million cubic feet per day of natural gas demand to Pembina's system, supporting its gas and liquids transportation, fractionation, processing, and marketing businesses. The company also plans to file an Alliance Heartland Expansion application with the Canada Energy Regulator in August 2026, targeting service by the fourth quarter of 2029.
Scott Burrows, Pembina's president and CEO, described Greenlight as a "first mover" in addressing Alberta's data-center energy needs. Chris Ortega, head of the Americas at Morgan Stanley Infrastructure Partners, emphasized that the facility will provide "dispatchable power at scale." The project is expected to begin commercial operations in the second half of 2030, with fixed-price contracts covering about 85% of capital expenditure to mitigate cost overruns.
In contrast, Pembina's potential stake in the West Coast oil pipeline remains tentative. The proposed line would transport up to 1 million barrels per day from Alberta to the Pacific, with majority ownership held by the federal government via Trans Mountain and Alberta through the Alberta Petroleum Marketing Corporation. Pembina has a non-binding agreement to hold a 10% stake during construction, with an option to acquire an additional 10% at startup. However, no official cost estimate has been released, funding discussions are ongoing, and regulatory approvals—including environmental assessments, Indigenous consultations, and a carbon-capture system—are pending. Prime Minister Mark Carney has urged swift action, but Pembina has stated it will not commit development capital until a final investment decision is made, a stance Burrows said provides "financial flexibility."
The Greenlight project is expected to contribute about 7.0% of Pembina's 2026 adjusted EBITDA guidance midpoint of C$4.35 billion to C$4.55 billion. The company's stock closed at C$66.89, up 1.6% from the previous close of C$65.82, but remained below its 52-week high of C$69.42. The S&P/TSX Composite index opened 0.3% higher at 35,082.35.
Pembina continues to trade as a yield-oriented stock. It paid a quarterly dividend of C$0.735 per share on June 30, representing a 3.5% increase from the prior payout and offering an annual yield of approximately 4.4% based on the latest TSX price. The NYSE listing was closed on Friday due to the Independence Day observance, while TSX trading proceeded as usual.
