Pembina (PBA) Joins TC Energy on ACG Project to Cut Emission
Pembina Pipeline Corporation PBA along with another Canadian pipeline companyTC Energy Corporation TRP announced intentions to collaborate on a large-scale carbon transportation and sequestration (CCUS) infrastructure project that on completion will be able to transfer more than 20 million tons of carbon dioxide per year.
The project will connect the existing pipelines through an open-access system, thus linking the Fort McMurray region, the Alberta Industrial Heartland and the Drayton Valley region, and will be built around a new sequestration hub called the Alberta Carbon Grid (ACG).
The ACG represents the infrastructural framework required for Alberta-based companies to successfully control their emissions, progressively contribute to Alberta's lower-carbon economy, and produce a long-term value for both Pembina and TC Energy shareholders.
According to both these Calgary-based pipeline operators, the first phase of ACG will be operating as soon as 2025 with project completion slated for 2027. The ACG's development and operation as well as other CCUS technology and infrastructure investments will provide each firm with a completely new business platform, a new high-value employment opportunity and stimulate economic development as well across Alberta.
The currently Zacks Rank of #2 (Buy) Pembina's president and CEO Mick Dilger says that Pembina's dedication toward its customers is highlighted in the ACG that sees it assist them in solving problems, developing new services, lowering emissions and utilizing the existing infrastructure to decrease environmental impact. He further added that, "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." You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Also, recently, a coalition of leading Canadian oil sands producers announced a collaboration to achieve net-zero greenhouse gas emissions from their operations by 2050 as the cash-rich companies face challenges in meeting the country's energy transition target.
This collaborative endeavor follows the introduction of substantial relief packages for emission-reduction projects and infrastructure by the governments of Canada and Alberta. To aid Canada in fulfilling its climate goals, the alliance will coordinate with the federal and Alberta governments.
The participants in this consortium are Suncor Energy Inc. SU alongside other Canadian oil sands producers, namely Canadian Natural Resources CNQ, Cenovus Energy, Imperial Oil Limited and MEG Energy.
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