Mr. Scott Burrows reports

PEMBINA PIPELINE ANNOUNCES POSITIVE FINAL INVESTMENT DECISION ON THE GREENLIGHT ELECTRICITY CENTRE

Pembina Pipeline Corp., Morgan Stanley Infrastructure Partners (MSIP) and Kineticor Asset Management, partners in the Greenlight Electricity Centre LP, today made a positive final investment decision on the Greenlight Electricity Centre (GLEC). GLEC is a 932-megawatt (MW) gas-fired combined cycle power generation facility to be located in Sturgeon county, within the Alberta Industrial Heartland, to serve a major data centre development.

Rapid growth in artificial intelligence (AI) and cloud computing is driving durable global demand for data centre capacity and Alberta has positioned itself as an attractive jurisdiction for significant investment. Data centre projects require long-term, reliable power and natural gas-to-power infrastructure has an important role to play in the success of this growing industry. Pembina and Kineticor have been instrumental in enabling development of the customer's data centre project, a first of its kind in Canada. The partners are first movers in responding to Alberta's large-scale data centre power needs and are proud to serve as the customer's long-term, behind-the-meter power provider.

Highlights

• Strategic fit -- The project fits squarely within Pembina's 3C's strategy to Capture volumes, Connect them to markets and Catalyze new demand platforms. Extending its track record of value creation from adjacent new businesses, Pembina will benefit directly from its investment in GLEC through a new long-term, stable cash flow stream, and increased business and customer diversification. Additionally, GLEC will catalyze intrabasin natural gas demand and provide a valuable new egress option to support Canadian natural gas production growth. This growth is expected to benefit Pembina's existing businesses, including natural gas processing and transportation, and natural gas liquids (NGL) transportation, fractionation and marketing.
• Long-term commercial support -- Consistent with Pembina's fee-based midstream model, GLEC will supply electricity to the customer's data centre under a long-term tolling agreement. The agreement is a tolling arrangement providing revenues in the form of capacity payments and usage-based payments (that is, fuel and operations and maintenance costs). The anticipated in-service date for the project is the second half of 2030.
• Strong project economics -- Greenlight has obtained a Class III level capital cost estimate of approximately $4-billion, or approximately $2-billion net to Pembina. Approximately 85 per cent of this cost has been secured under fixed price agreements. The total project cost, including $600-million (gross) of interest during construction and other financing costs is expected to be approximately $4.6-billion, or approximately $2.3-billion, net to Pembina. Inclusive of the proceeds of $190-million, net to Pembina, from the sale of land to the customer, Pembina's total net investment in GLEC will be approximately $2.1-billion. The project is expected to generate annual run-rate adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of approximately $310-million, net to Pembina.
• Growth platform -- GLEC will provide a meaningful contribution to Pembina's growth in 2030 and beyond, including its recently announced 5- to 7-per-cent fee-based adjusted EBITDA per share growth target to 2030. Further, Pembina believes this to be a highly scalable new business line. Pembina and its partners are advancing potential additional power to data centre projects, including a second phase of the generation project, as well as other opportunities that could contribute significantly to Pembina's long-term growth.

Greenlight ownership -- Greenlight is owned by Pembina (47.5 per cent), MSIP (47.5 per cent) and Kineticor (5 per cent).

"This is a tremendously exciting development within Pembina's growing and increasingly diversified business. Together with Kineticor, we have leveraged our advantaged position within the Canadian mid-stream energy industry and are proud to be the first mover in responding to the power requirements of Alberta-based data centres, all within Pembina's proven midstream model. Dedicated, contracted gas-to-power infrastructure represents a promising new growth platform, through which we are also helping to catalyze new natural gas demand that will provide additional benefits throughout our business," stated Scott Burrows, president and chief executive officer, Pembina.

"The GLEC represents a significant investment in Alberta's future and a major step forward in establishing a dynamic new industry. Alberta's strong regulatory framework combined with the province's commitment to the sustainable growth of the data centre industry has created the conditions necessary to advance this project to a positive final investment decision. We remain committed to developing sustainable infrastructure projects across Alberta that deliver affordable and reliable power while supporting long-term economic growth," stated Andrew Plaunt, chief executive officer, Kineticor.

"Reliable, dispatchable power is the foundation of the AI and cloud economy and Greenlight will deliver it at scale to one of Canada's most important new data centre developments. We are proud to partner with Pembina and Kineticor to begin construction on this landmark project and look forward to expanding the partnership to support future growth in Alberta," stated Chris Ortega, head of the Americas for MSIP.

"Alberta natural gas is powering the digital economy forward with this significant investment in electricity generation. This announcement reflects the positive momentum created by the province's memorandum of understanding with the federal government last fall, including the abeyance of the federal government's clean electricity regulations. Investments like this will lead to thousands of jobs, significant economic growth and hundreds of millions in provincial revenue that can be reinvested to support the services that matter most to Albertans," said Premier Danielle Smith.

"Greenlight is a great addition to our industrial heartland and we welcome the opportunities it brings with its development. By building new power generation, this project helps create the reliable energy supply needed to enable future industrial growth, attract investment and strengthen our region's competitiveness without increasing demand on Alberta's electricity grid. We congratulate Greenlight and its partners on moving forward with this project and the role it plays in supporting Alberta's energy future," stated Sturgeon County Mayor Alanna Hnatiw.

Greenlight electricity centre overview

The project will consist of a 932 MW combined cycle gas power plant that will supply power on a dedicated basis to the customer's data centre. The site has the potential to be expanded to a permitted generation capacity of 1,864 MW.

GLEC will utilize two highly efficient SGT6-8000H gas turbines, two SST6-5000 KN steam turbines coupled with two SGen6-3000W generators -- all from Siemens Energy. combining gas and steam power production in this configuration increases energy efficiency compared with traditional simple cycle gas turbine generators. Greenlight has ensured delivery timing and cost certainty through a fixed price agreement with Siemens Energy Inc., as well as a long-term service agreement with Siemens Energy Canada Ltd.

GLEC will require approximately 150 million cubic feet per day of natural gas. Through recent open seasons on Pembina's Alliance Heartland expansion project and the TC Energy Nova Gas Transmission Ltd. systems, and other commercial arrangements, Greenlight has secured sufficient natural gas transportation capacity on a long-term basis to support the project. Greenlight's natural gas contracting strategy provides redundancy and operational flexibility.

Greenlight has leveraged the combined experience, strong relationships, and contracting expertise of Pembina and Kineticor to support development of the project. Kineticor led the origination and development of GLEC as part of a fully integrated offering to the customer and will be responsible for the continuing development of future expansion opportunities. Pembina will lead the GLEC construction management workstream, leveraging its record of building infrastructure on time and on budget. Following construction, GLEC will be operated by a third party contract operator under a long-term services agreement.

The project has received all major regulatory approvals and has an anticipated in-service date in the second half of 2030.

Commercial structure

Greenlight and the customer have entered into a long-term electrical energy supply agreement (EESA) under which Greenlight will provide 932 MW of capacity from GLEC to power the customer's data centre. The EESA is structured as a tolling agreement, supporting a stable stream of capacity payments and usage-based payments (that is, fuel and operations and maintenance costs).

GLEC's commercial structure aligns with Pembina's fee-based mid-stream model and will strengthen the company's business profile by generating additional low-risk cash flows and diversifying its customer base with a new, global, investment grade counterparty.

Project economics and funding

Greenlight has entered into fixed price agreements with a consortium of Aecon Group Inc. (Toronto Stock Exchange: ARE) and Tecnicas Reunidas for the engineering, procurement and construction (EPC) of GLEC. Together with the fixed price agreement for the purchase of turbines from Siemens, approximately 85 per cent of the project's cost has been derisked.

Once operational, GLEC is expected to generate annual run-rate adjusted EBITDA of approximately $310-million, net to Pembina. The project's economics reflect a prudent risk profile, including a long-term commercial agreement, lump sum EPC agreement and certain cost protections. Separate from GLEC, Pembina may benefit from additional economics related to gas processing and transportation, liquids transportation, and fractionation.

Greenlight has arranged asset-level debt financing for approximately 60 per cent of the project's cost with the remaining 40 per cent to be financed through equity contributions. Pembina's net investment of approximately $2.3-billion represents a requirement whereby each of Pembina and MSIP will finance 50 per cent of Greenlight's capital. Pembina's contribution will be financed through a combination of project debt and approximately $1-billion of equity contributions. Capital spending in 2026 to 2027 will be financed with asset-level debt financing, while capital spending in 2028 to 2030 will be funded with partner equity contributions.

Integration and expansion opportunities

Pembina's advantages include its fully integrated wellhead-to-market infrastructure and ability to service customers across the full hydrocarbon value chain. Through GLEC, Pembina is extending its business into an adjacent opportunity arising from its existing footprint, unique capabilities and strong relationships.

In addition to the direct benefits of Pembina's investment in the project, GLEC will create valuable new demand for Canadian natural gas, supporting production growth that is expected to benefit Pembina's existing gas processing and gas transportation businesses, including providing support for a regional expansion of the Canadian segment of the Alliance Pipeline.

Alliance Pipeline's binding open season for a new proposed short-haul point-to-point transportation service on the Canadian segment of its system concluded on April 20, 2026. The proposed Alliance Heartland expansion project would provide natural gas delivery to a new meter station in Fort Saskatchewan with an anticipated in-service date in the fourth quarter of 2029. Successful proponents have been awarded capacity conditional on the project being sanctioned. The Alliance Heartland expansion project continues to progress toward a final investment decision, with continuing workstreams focused on engineering and regulatory activities, including the filing of applications with the Canada energy regulator, which is expected to occur in August, 2026.

Further, growing natural gas production supports the associated growth of other products in the Western Canadian sedimentary basin, including condensate and NGL, providing additional benefits to Pembina from increased liquids transportation, fractionation and marketing services.

Future opportunities associated with GLEC include the potential to support development of the Alberta carbon grid and the transportation and sequestration of emissions from the project.

GLEC is the first project within a scalable new platform. The partners are aligned in their desire to build a mid-stream power business and aspire to repeat the success of GLEC with an expansion of the existing project and/or through the development of additional power plants for other data centre customers. A future expansion is expected to align well with the AESO's phase 2 large load allocation process and the province of Alberta's "bring your own power" data centre strategy.

Greenlight LP ownership update

MSIP has acquired from OPTrust, Kineticor's majority shareholder, its 50-per-cent ownership interest in Greenlight. In addition, upon FID, Kineticor was granted a 5-per-cent interest in Greenlight. The resulting ownership of Greenlight is Pembina (47.5 per cent), MSIP (47.5 per cent) and Kineticor (5 per cent).

Greenlight's future capital expenditures will be financed equally between Pembina and MSIP.

"Pembina has enjoyed a strong relationship with OPTrust and Kineticor. Together we have supported development of a new data centre industry in Alberta and positioned Greenlight as a dedicated power provider with a scalable, high-growth platform," said Scott Burrows, Pembina's president and chief executive officer. "We look forward to working with MSIP given our complementary strengths and mutual desire to invest capital and generate attractive returns. MSIP is well funded and brings valuable expertise in global infrastructure development that will contribute meaningfully to our shared success."

Advisers

Blake, Cassels & Graydon LLP acted as legal counsel to Greenlight with respect to the commercial agreements and project financing.

Norton Rose LLP acted as counsel to Pembina on the joint venture formation and other commercial agreements.

Osler, Hoskin & Harcourt LLP acted as legal counsel with respect to the EPC agreements.

McCarthy Tetrault LLP acted as legal counsel to lenders.

MUFG Bank, Ltd. acted as financial adviser on the project financing.

Santander acted as exclusive M&A (merger and acquisition) and financing adviser to MSIP on the transaction.

Macquarie Capital acted as exclusive financial adviser to OPTrust and Kineticor.

Kirkland & Ellis and Bennett Jones acted as legal counsel to MSIP.

We seek Safe Harbor.