Pembina Pipeline Corp. says its planned participation in a proposed West Coast oil pipeline is closely aligned with its broader strategy as the project moves toward a potential designation as a project of national interest this fall.
During the second quarter, Pembina entered into a non-binding agreement that would give the company a 10% interest in the pipeline during construction. Pembina would also have the option to acquire an additional stake of up to 10% once the project enters commercial operation.
The company’s CEO, Scott Burrows, said the investment fits directly into Pembina’s strategy of connecting resources in Western Canada’s production basin with markets and infrastructure that can improve returns for customers.
“From a core strategic perspective, it fits directly in what we’re talking about,” Burrows said during Pembina’s second-quarter earnings call.
The company said it retains full discretion over any final investment decision concerning its stake in the project. The agreement also includes protections related to potential cost overruns and investment returns.
Pembina is prepared to put capital at risk, Burrows said, but only after weighing the potential risks against the expected returns.
He added that the company believes the project could benefit not only Pembina but also the broader Western Canadian production basin.
Pipeline could significantly expand oil exports
The proposed pipeline would be developed, constructed and operated by Crown-owned Trans Mountain Corp.
The project is currently estimated to cost between $35 billion and $44 billion, with the federal and provincial governments expected to shoulder approximately 90% of the cost under the current structure.
The pipeline would transport crude oil to a port south of Vancouver, largely following the route of the existing Trans Mountain system.
According to a recent report from TD Economics, the project could increase Canada’s oil exports by approximately 20% and more than double the volume of Canadian crude currently transported by tanker to Asian markets.
For Pembina, the project represents another opportunity to expand connections between Western Canada’s resource production and international markets.
National-interest designation is next milestone
Pembina’s chief legal, people and corporate affairs officer, Sarah Schwann, said the company has been working closely with government partners on the proposed pipeline.
The next major milestone is expected to come Oct. 1, when the project is being targeted for designation under the Building Canada Act.
That designation could represent an important step toward advancing the project and establishing its broader role in Canada’s energy infrastructure.
Cedar LNG also reaches construction milestones
Pembina also provided an update on its Cedar LNG project in Kitimat, British Columbia.
The company expects the facility to begin its first exports in late 2028.
During the second quarter, Pembina said it reached several important construction milestones, including mechanical completion of the pipeline that will supply the LNG facility.
The company also successfully moved the floating LNG vessel from dry dock to wet dock in South Korea.
Pembina reports higher earnings and revenue
Pembina reported second-quarter earnings of $512 million, up from $417 million during the same period in 2025.
Revenue increased to $2.15 billion from $1.79 billion a year earlier.
On a diluted per-share basis, earnings reached 82 cents for the quarter ended June 30, compared with 65 cents during the second quarter of the previous year.
The results come as Pembina continues to expand its infrastructure portfolio across oil, natural gas and LNG while pursuing projects designed to strengthen connections between Western Canadian production and domestic and international markets.
