Pembina & TC Energy Partnering on "World-Scale" CCS Project in Alberta 6/17/2021

Pembina Pipeline and TC Energy have announced the joint development of a world-scale carbon transport and sequestration system in Alberta.  The so-called Alberta Carbon Grid (ACG) Project would be able to transport >20 Mtpa of CO2 annually, using existing pipes and a new sequestration hub.  

They plan to design it as an open-access system for the Alberta carbon capture utilization and storage (CCUS) industry.  Notable, the deal is reliant of some pipes which would be acquired via Pembina's purchase of Inter Pipeline.

The sequestration hub will be located in a reservoir near Fort Saskatchewan in the Basal Cambrian Sands.  Permit applications are now underway, and the reservoir can reportedly handle >2 billion tonnes of CO2.  The initial phases would come online as soon as 2025, with full operations as early as 2027.

The partners provided a description of each leg of the system, which are as follows:

North Leg

This would connect Oil Sands assets to the sequestration hub, including an initial capacity of 40,000 tonnes per day from the Fort McMurray area.  They will retrofit existing pipes in the area while also building a new expansion to flow all the way downstream,

Central Leg

The central leg will connect with the Alberta Industrial Heartland, transporting 10,000-2,000 tonnes per day in CO2 via retrofitted and new pipelines.  

Southwest Leg

The SW Leg would reach into power generation facilities in the Albert region, possibly grabbing 10,000-20,000 tonnes per day.

Future Legs

Future expansions would be added into several other areas, such as Joffre, Christina Lake, Cold Lake or Swan Hills.

Northern Oil & Gas Adds +2,900 Net Acres in Permian w/ $102MM in Bolt-On Acquisitions 6/17/2021

Northern Oil & Gas executed a series of Permian bolt-on acquisitions for $102.2 million that add 2,900 net acres and 3.7 Mboe/d in 2H21 production.  They anticipate that the acreage will generate >$40 million in cash flow from operations through the next 12-months and >$100 million on free cash flow through 2025. 

Northern's expected 2021 capital spending budget increased to $215-$270 million, rising from prior guidance of $200-$250 million.  Through the next few years, Northern plans to grow production on the acreage to 6.5 Mboe/d.

They have financed the deal with a combination of a common equity offering, cash on hand and borrowings under the Senior Secured Credit Facility.