Pembina Pipeline closes Alliance, Aux Sable purchases; raises guidance

CALGARY — Pembina Pipeline Corp. says it has closed its previously announced $3.1-billion purchase of Enbridge Inc.'s stakes in the Alliance pipeline and Aux Sable gas processing facility.

The completed transaction sees the Calgary-based Pembina — which already owned 50 per cent of Alliance and 42.7 per cent of Aux Sable — acquire Enbridge's 50 per cent ownership of Alliance and 42.7 per cent ownership of Aux Sable.

As part of the transaction, Pembina, which is the current operator of Aux Sable, becomes the sole operator of Alliance.

The Alliance pipeline is a 3,848-kilometre pipeline stretching southeast from B.C. that brings gas into Chicago's Aux Sable, one of the largest natural gas liquids processing facilities in North America.

On Monday, Pembina updated its 2024 adjusted EBITDA guidance to between $4.05 billion and $4.30 billion, up from previous guidance of between $3.7 billion and $4.0 billion.

The company says the revised outlook reflects the incremental contribution from increased ownership of Alliance and Aux Sable, as well as a stronger outlook for its marketing business.

This report by The Canadian Press was first published April 1, 2024.

Companies in this story: (TSX:PPL; TSX:ENB)

The Canadian Press