Pine Cliff Energy Ltd. Announces Natural Gas Supply Agreement for an Alberta Data Centre Development
Pine Cliff Energy (TSX: PNE) (OTCQX: PIFYF) has signed definitive agreements to supply natural gas to a private company's data center development in Central Alberta. The agreement spans 25 years and involves supplying between 3.2 MMcf/d and 4.8 MMcf/d of natural gas, with pricing based on a rolling 12-month average of NYMEX price.
The data center will be constructed adjacent to Pine Cliff's existing facility and will operate independently from Alberta's electrical grid. For context, Pine Cliff's Q3 2024 natural gas production averaged 108.0 MMcf/d. The private company will be solely responsible for the data center's construction and operation, subject to regulatory approvals. The agreement includes specific milestones for construction timing and regulatory approvals, with potential early termination if these conditions aren't met.
Pine Cliff Energy (TSX: PNE) (OTCQX: PIFYF) ha firmato accordi definitivi per la fornitura di gas naturale a uno sviluppo di data center di un'azienda privata nell'Alberta Centrale. L'accordo ha una durata di 25 anni e prevede la fornitura di un volume compreso tra 3,2 MMcf/d e 4,8 MMcf/d di gas naturale, con prezzi basati sulla media mobile dei prezzi NYMEX su un periodo di 12 mesi.
Il data center sarà costruito adiacente all'impianto esistente di Pine Cliff e opererà in modo indipendente dalla rete elettrica dell'Alberta. Per fornire un contesto, la produzione di gas naturale di Pine Cliff nel terzo trimestre del 2024 è stata mediamente di 108,0 MMcf/d. L'azienda privata sarà l'unica responsabile per la costruzione e l'operazione del data center, subordinata alle approvazioni normative. L'accordo include traguardi specifici per la tempistica della costruzione e le approvazioni normative, con la possibilità di cessazione anticipata se queste condizioni non vengono rispettate.
Pine Cliff Energy (TSX: PNE) (OTCQX: PIFYF) ha firmado acuerdos definitivos para suministrar gas natural a un desarrollo de centro de datos de una empresa privada en el centro de Alberta. El acuerdo tiene una duración de 25 años y consiste en suministrar entre 3.2 MMcf/d y 4.8 MMcf/d de gas natural, con precios basados en un promedio móvil de 12 meses del precio de NYMEX.
El centro de datos se construirá adyacente a la instalación existente de Pine Cliff y operará de forma independiente de la red eléctrica de Alberta. Para dar contexto, la producción de gas natural de Pine Cliff en el tercer trimestre de 2024 promedió 108.0 MMcf/d. La empresa privada será la única responsable de la construcción y operación del centro de datos, sujeta a las aprobaciones regulatorias. El acuerdo incluye hitos específicos para el cronograma de construcción y las aprobaciones regulatorias, con la posibilidad de terminación anticipada si estas condiciones no se cumplen.
파인 클리프 에너지 (TSX: PNE) (OTCQX: PIFYF)는 중앙 알버타에 위치한 민간 기업의 데이터 센터 개발에 천연 가스를 공급하기 위한 최종 계약을 체결했습니다. 이 계약은 25년 동안 지속되며, 3.2 MMcf/d와 4.8 MMcf/d의 천연 가스를 공급하는 내용을 포함하고 있으며, NYMEX 가격의 12개월 평균에 따라 가격이 책정됩니다.
데이터 센터는 파인 클리프의 기존 시설 옆에 건설되며, 알버타의 전력망과 독립적으로 운영됩니다. 참고로, 파인 클리프의 2024년 3분기 동안의 천연가스 생산량은 평균 108.0 MMcf/d였습니다. 민간 기업은 데이터 센터의 건설 및 운영에 대한 전적인 책임을 지며, 규제 승인이 필요합니다. 이 계약에는 건설 일정 및 규제 승인에 대한 특정 이정표가 포함되어 있으며, 이러한 조건이 충족되지 않을 경우 조기 종료가 가능할 수 있습니다.
Pine Cliff Energy (TSX: PNE) (OTCQX: PIFYF) a signé des accords définitifs pour fournir du gaz naturel à un développement de centre de données d'une entreprise privée dans le centre de l'Alberta. L'accord s'étend sur 25 ans et implique la fourniture d'un volume compris entre 3,2 MMcf/d et 4,8 MMcf/d de gaz naturel, avec des prix basés sur une moyenne mobile sur 12 mois du prix NYMEX.
Le centre de données sera construit à côté de l'installation existante de Pine Cliff et fonctionnera de manière indépendante du réseau électrique de l'Alberta. Pour donner un contexte, la production de gaz naturel de Pine Cliff pour le troisième trimestre 2024 a été en moyenne de 108,0 MMcf/d. L'entreprise privée sera seule responsable de la construction et de l'exploitation du centre de données, sous réserve des approbations réglementaires. L'accord comprend des jalons spécifiques pour le calendrier de construction et les approbations réglementaires, avec une possibilité de résiliation anticipée si ces conditions ne sont pas remplies.
Pine Cliff Energy (TSX: PNE) (OTCQX: PIFYF) hat endgültige Vereinbarungen zur Lieferung von Erdgas an die Entwicklung eines Datenzentrums eines privaten Unternehmens im zentralen Alberta unterzeichnet. Die Vereinbarung hat eine Laufzeit von 25 Jahren und sieht die Lieferung von zwischen 3,2 MMcf/d und 4,8 MMcf/d Erdgas vor, wobei die Preise auf einem rollierenden 12-Monats-Durchschnitt des NYMEX-Preises basieren.
Das Datenzentrum wird angrenzend an die bestehende Anlage von Pine Cliff errichtet und wird unabhängig vom Stromnetz Alberta betrieben. Zum Kontext: Die Erdgasproduktion von Pine Cliff im Drittquartal 2024 betrug im Durchschnitt 108,0 MMcf/d. Das private Unternehmen ist ausschließlich für den Bau und Betrieb des Datenzentrums verantwortlich, vorbehaltlich der behördlichen Genehmigungen. Die Vereinbarung umfasst spezifische Meilensteine für den Bauzeitplan und die behördlichen Genehmigungen, wobei eine vorzeitige Kündigung möglich ist, wenn diese Bedingungen nicht erfüllt werden.
- Secured long-term 25-year natural gas supply agreement
- Agreement provides stable revenue stream tied to NYMEX pricing
- Supply commitment represents only 3-4.4% of current production (108.0 MMcf/d)
- Agreement subject to various conditions precedent and regulatory approvals
- Risk of early termination if construction milestones aren't met
Calgary, Alberta--(Newsfile Corp. - January 17, 2025) - Pine Cliff Energy Ltd. (TSX: PNE) (OTCQX: PIFYF) ("Pine Cliff" or the "Company") is pleased to announce that it has entered into definitive agreements with a private company ("PrivateCo") for the supply of between 3.2 MMcf/d1 and 4.8 MMcf/d1 of natural gas for an initial term of 25 years pursuant to a natural gas supply agreement ("Supply Agreement"). PrivateCo has agreed to construct and operate a data centre (the "Data Centre") not connected to the Alberta electrical grid, adjacent to an operating Pine Cliff facility in Central Alberta. Under the Supply Agreement, Pine Cliff will provide natural gas and will receive a natural gas price based on a rolling 12-month average of NYMEX price. The supply of natural gas under the Supply Agreement will commence upon, among other things, the commissioning of the Data Centre. In Q3 2024 Pine Cliff's production of natural gas averaged 108.0 MMcf/d.
The construction and operation of the Data Centre will be the sole responsibility of PrivateCo and will be subject to applicable regulatory and government approvals and permits. The Supply Agreement includes conditions precedent for the supply and delivery of natural gas at the Data Centre which include obligatory milestones for the timing of construction, and receipt of regulatory approvals and timing of the Data Centre being commercially operational. Failure to meet these milestones could result in the early termination of the Supply Agreement and the lease.
About Pine Cliff
Pine Cliff is an Alberta based natural gas and crude oil company with a long-term view of creating shareholder value. Further information relating to Pine Cliff may be found on sedarplus.ca as well as on Pine Cliff's website at www.pinecliffenergy.com.
Notes to Press Release
1. Converted from the Supply Agreement of 33 million cubic meters per year and 50 million cubic meters per year.
Reader Advisories
Certain information regarding the Company and statements contained herein may constitute forward-looking statements under applicable securities laws, including statements related to the volumes of natural gas expected to be delivered, the term of the Supply Agreement, the construction of the Data Centre, the expectation that the Data Centre will operate off of the Alberta electricity grid, the timing of the completion of the Data Centre, including assumptions about the ability of the Data Centre to obtain relevant regulatory and government approvals and permits. All such forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances, which speak only as of the date hereof, and are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those expressed in, anticipated or implied in the forward-looking statements.
The risks, uncertainties and assumptions are difficult to predict and may affect the Supply Agreement or the lease, and may include, without limitation: fluctuations in the NYMEX prices; equipment and labour shortages and inflationary costs; general economic conditions; industry conditions; changes in applicable environmental, taxation and other laws and regulations as well as how such laws and regulations are interpreted and enforced; the ability of Pine Cliff to supply the natural gas; and other factors, many of which are beyond our control. The foregoing factors are not exhaustive.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement.
Certain Definitions
MMcf - Million cubic feet
MMcf/d - Million cubic feet per day
For further information, please contact:
Philip B. Hodge - President and CEO
Kristopher B. Zack -CFO and Corporate Secretary
Telephone: (403) 269-2289
Fax: (403) 265-7488
Email: info@pinecliffenergy.com
The TSX does not accept responsibility for the accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/237578
FAQ
What is the volume of natural gas Pine Cliff Energy (PIFYF) will supply under the new agreement?
How long is the term of Pine Cliff Energy's (PIFYF) new natural gas supply agreement?
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How will the natural gas price be determined in Pine Cliff Energy's (PIFYF) supply agreement?
Will the new data center using Pine Cliff Energy's (PIFYF) gas be connected to Alberta's electrical grid?
