Pembina pursues gas-to-power opportunities through Greenlight development
The Greenlight Electricity Centre (GLEC), sanctioned in July 2026 to provide behind-the-meter power for an upcoming 1-Gw Meta data center, is expected to be the first large-scale gas-to-power project supporting a data center for Pembina Pipeline Corp. and partners, and could have implications for some of the company's other business segments, Chris Scherman, Pembina's chief marketing and strategy officer, told Oil & Gas Journal.
The 932-Mw combined-cycle power generation plant, as well as Meta’s adjacent $13 billion (Can.) data center, are planned for Sturgeon County in Alberta’s Industrial Heartland, Canada’s first pre-zoned industrial region and its largest hydrocarbon processing cluster. GLEC has received all major regulatory approvals, including permission to expand to 1,864 Mw of generation capacity, and has an anticipated in-service date in second-half 2030.
“Alberta's Industrial Heartland was selected because it is already designated for industrial development, has access to existing natural gas, power transmission, water and wastewater infrastructure, and is near potential carbon capture development. The location also provides access to a highly skilled local workforce in the Edmonton region,” Scherman said.
Total project cost is expected to be about $4.6 billion (Can.), including $600 million (Can.) of interest during construction and other financing costs. Greenlight Electricity Centre LP (Greenlight), owner of GLEC, has obtained a Class III level capital cost estimate of about $4 billion (Can.), with about 85% of this cost secured under fixed price agreements.
GLEC will use two high efficiency SGT6-8000H gas turbines, two SST6-5000 KN steam turbines coupled with two SGen6-3000W generators, all from Siemens Energy. Greenlight has entered into a fixed-price agreement with Siemens Energy Inc. and a long-term service agreement with Siemens Energy Canada Ltd. to support equipment delivery and project execution.
The project’s commercial structure aligns with Pembina's fee-based midstream model, underpinned by a 20-year tolling agreement between Greenlight and Meta, providing revenues in the form of capacity payments and usage-based payments (e.g., fuel and operations and maintenance costs).
Through recent open seasons on Pembina's proposed 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 to deliver the roughly 150 MMcfd needed to power GLEC on a long-term basis, the company said.
Pembina and Morgan Stanley Infrastructure Partners (MSIP) each hold a 47.5% stake in the Greenlight partnership. Kineticor Asset Management, a Calgary-based independent power producer and asset manager, holds 5%.
Implications for gas, liquids businesses
Scherman said Pembina is evaluating additional gas-to-power opportunities tied to prospective data center developments, including marketing the second phase of GLEC and assessing recently acquired land in Alberta's Industrial Heartland for future projects.
Alberta's "bring your own power" approach to data center development has created opportunities for dedicated natural gas-fired generation projects. GLEC is among the first large-scale examples in Canada.
Data center developments in other jurisdictions have sometimes attracted additional investment because of shared infrastructure such as water systems and fast fiber connections, while Scherman said its project could have implications for several of Pembina's existing business lines.
Additional gas-fired generation associated with data center development could increase demand for Canadian natural gas and potentially support utilization of Pembina’s gas processing and transportation assets, he said, including providing support for a regional expansion of the Canadian segment of the Alliance Pipeline.
Pembina’s 350,000 cfd Alliance Heartland Expansion Project is to provide natural gas delivery to a new meter station in Fort Saskatchewan, with an anticipated in-service date in fourth-quarter 2029, subject to timely regulatory approvals by the Canada Energy Regulator.
Increased natural gas production also supports greater volumes of condensate and NGL from the Western Canadian Sedimentary Basin, Scherman said, potentially increasing demand for the company’s liquids transportation, fractionation, and marketing services.
Future opportunities include the potential to support development of the Alberta Carbon Grid (ACG) and the transportation and sequestration of emissions from GLEC.
“GLEC will be carbon capture ready, which means that future upgrades could enable emissions to be captured and stored rather than emitted,” he continued.
The ACG is a partnership between Pembina and TC Energy aimed at providing carbon transportation and sequestration solutions across the province for multiple customers, industries, and sectors, with the ACG Industrial Heartland project expected to be its first hub. The long-term goal of the partnership is to transport and store up to 20 million tonnes/year of CO2 through several hubs across Alberta.
About the Author
Vincent Lauerman
Vincent Lauerman is a freelance writer based in Calgary, Alberta. Over his nearly 4-decade career he has worked as an analyst and journalist focusing on global and North American energy markets and issues, including a stint as New York Bureau Chief for Energy Intelligence.
