Canada’s Pembina Pipeline Corp on Monday forecast 2021 capital investment to be $785 million, lower than 2020 projection, and said it would suspend execution of a joint venture project in the Alberta province indefinitely.
A sharp decline in global crude prices and demand destruction caused by the COVID-19 pandemic have battered Canada, which was already selling its oil at steep discounts.
Although prices have recovered from historic lows hit earlier this year, producers are resuming their shut-in drilling and increasing capital spending.
Pembina also said significant risks, mainly project costs, arising from the pandemic require the company and partner Petrochemical Industries Co KSC to suspend execution of the their joint project, Canada Kuwait Petrochemical Ltd Partnership, indefinitely.
Pembina announced a final investment decision for a $4.5-billion plant in partnership with Kuwait’s Petrochemical Industries in 2019.
The Canadian company said on Monday it expects 2021 adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $3.2 billion to $3.4 billion.
Last week, U.S. pipeline operator Kinder Morgan Inc said it expects to generate higher income in 2021, while Canadian pipeline operator Enbridge Inc forecast higher core earnings in 2021 as the companies bet on a faster rebound in demand.
Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.