Pembina Pipeline Corp. says its planned investment in the proposed West Coast oil pipeline is in line with its long-term growth strategy as the project nears a possible designation as a Project of National Interest later this year.
The company entered into a non-binding agreement during the second quarter to acquire a potential 10% interest in the pipeline being constructed, with an option to increase its interest by an additional 10% upon commencement of commercial operations.
The investment is consistent with the company’s goal of strengthening energy infrastructure in Western Canada, said President and CEO Scott Burrows in Pembina’s second-quarter earnings call.
“Expanding transportation capacity for crude oil, natural gas and liquefied petroleum gas (LPG) benefits producers by improving market access and increasing production returns, and has positive effects across Pembina’s broader business,” Burrows said.
Pembina has indicated strong interest in the project but has emphasized that it has full discretion in any final investment decision. The proposed deal also includes protections against construction cost overruns and anticipated financial returns, it said.
Burrows said Pembina views the project as a good balance of risk and opportunity, making it an attractive long-term investment for the company and the Canadian energy sector.
The proposed pipeline will be built, constructed and operated by Crown-owned Trans Mountain Corporation. Current estimates put the total project cost at between $35 billion and $44 billion, with about 90% of the funding expected to come from the federal and provincial governments.
If completed, the pipeline would carry crude oil to a terminal south of Vancouver, largely along the existing Trans Mountain corridor. A recent TD Economics report suggests the project could increase Canada’s oil export capacity by 20 per cent and more than double the volume of crude currently shipped by tanker from the West Coast to Asian markets.
Pembina will continue to work closely with government partners as the project progresses, said Sarah Schwann, the company’s Chief Legal, People and Corporate Affairs Officer.
She identified Oct. 1 as the next big step, when the federal government is expected to decide whether the project will be designated under the Building Canada Act, a status designed to accelerate nationally significant infrastructure projects.
Pembina also noted continued progress on its Cedar LNG export project in Kitimat, B.C., with first LNG exports still expected in late 2028, in addition to the West Coast pipeline.
Mechanical completion of the natural gas pipeline that will supply the facility and the successful transfer of the floating LNG production vessel from dry dock to wet dock in South Korea were among several key milestones achieved by construction teams during the quarter.
Pembina had improved financial results for the second quarter.
Net earnings were $512 million, compared with $417 million during the same period in 2025. Quarterly revenue also increased to $2.15 billion from $1.79 billion a year ago.
Diluted earnings were 82 cents per share compared with 65 cents in the second quarter last year.
“With new investments in pipeline infrastructure, and continued progress on major LNG developments, Pembina says it continues to focus on expanding Canada’s energy transportation network while supporting long-term growth opportunities for producers and export markets.
