Pembina Pipeline Aligns with National Interest Strategy for West Coast Oil Pipeline

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Pembina Pipeline Corp. has announced its strategic involvement in the proposed West Coast oil pipeline, aiming to enhance oil exports and production in Canada.

EDMONTON — Pembina Pipeline Corp. has revealed that its engagement in the proposed West Coast oil pipeline aligns with its broader strategic objectives, especially in light of the anticipated designation of the project as one of national interest this fall. In the second quarter, Pembina entered a non-binding agreement to acquire a 10 percent stake during the construction phase of the West Coast oil pipeline, with an option to secure an additional 10 percent interest once the project transitions into commercial operations.
Scott Burrows, the CEO of Pembina, articulated during the company’s second-quarter earnings call that this initiative fits into the company’s strategic plans, particularly in enhancing connectivity in the basin. He emphasized that any effort to boost production and netback for clients—whether through natural gas, liquefied petroleum gas, or crude oil—will create beneficial ripple effects throughout the business.
Burrows stated, "From a core strategic perspective, it fits directly in what we’re talking about." He also noted that Pembina retains full discretion over its final investment decision concerning this project, along with safeguards against cost overruns and returns on investment. "We’re willing to put some money at risk, but it comes back to the risk-reward, and when we stacked up all the key aspects of this project, we felt like it was something that we wanted to be involved in and are very excited about it, not just for Pembina but what it can do for the basin as well," Burrows added.
The West Coast pipeline, which will be developed, constructed, and operated by Crown-owned Trans Mountain Corp., is estimated to cost between $35 billion and $44 billion. Currently, 90 percent of this financial burden is expected to be borne by federal and provincial governments. The pipeline, which will extend to a port south of Vancouver and largely follow the existing Trans Mountain route, is projected to increase Canada’s oil exports by 20 percent and more than double the current volume of oil transported overseas via tankers to Asia, according to a recent analysis by TD Economics.
Sarah Schwann, Pembina’s Chief Legal, People, and Corporate Affairs Officer, mentioned during the earnings call that the company is collaborating closely with government partners on this project. "The first milestone as we look forward is really targeting that Oct. 1 designation under the Building Canada Act," she stated.
Additionally, Pembina reported advancements in its Cedar LNG project located in Kitimat, B.C., anticipating initial exports by late 2028. Burrows noted that the company achieved significant construction milestones during the quarter, including the mechanical completion of the pipeline supplying the facility and the successful transition of the floating LNG vessel from dry dock to wet dock in South Korea.
For the second quarter, Pembina reported earnings of $512 million, an increase from $417 million during the same period a year prior. The company’s revenue reached $2.15 billion for the quarter, up from $1.79 billion year-over-year. On a diluted per-share basis, the earnings amounted to 82 cents for the period ending June 30, compared to 65 cents during the corresponding quarter last year.

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