Pembina Pipeline Corp. says its participation in the proposed West Coast oil pipeline fits into the company’s overall strategy ahead of the pipeline’s potential designation as a project of national interest in the fall.
During the second quarter, Pembina entered into a non-binding agreement that would see it take a 10 per cent interest during construction of the proposed West Coast oil pipeline, with the opportunity for an additional up to 10 per cent interest once the project enters commercial operation.
“When I think about the strategy, this fits clearly in the connect bucket. Anything we can do in the basin, whether it’s natural gas, (liquefied petroleum gas), crude oil, to increase the production and the netback for our customers has that knock-on effect throughout the business,” Pembina CEO Scott Burrows said on the company’s second-quarter earnings call.
“From a core strategic perspective, it fits directly in what we’re talking about.”
Pembina said it has full discretion over any final investment decision for its interest in the project and has protections related to cost overruns and returns.
“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 said.
The pipeline would be developed, built and operated by Crown-owned Trans Mountain Corp. Its estimated cost could range from $35 billion to $44 billion, and as of now 90 per cent of that is to be shouldered by the federal and provincial governments.
The pipeline to a port south of Vancouver, which would largely follow the route of the existing Trans Mountain line, would boost Canada’s oil exports by 20 per cent and more than double what currently goes overseas on tankers to Asia, according to a recent report from TD Economics.
Sarah Schwann, Pembina’s chief legal, people and corporate affairs officer, said on the call that the company has been working closely with government partners on the project.
“The first milestone as we look forward is really targeting that Oct. 1 designation under the Building Canada Act,” she said.
Pembina also said it made progress at its Cedar LNG project in Kitimat, B.C., and expects the first exports in late 2028.
“During the quarter, we achieved key construction milestones, including mechanical completion of the pipeline that will supply the facility and successfully moving the floating LNG vessel haul from dry dock to wet dock in South Korea,” Burrows said.
Pembina said it earned $512 million in the second quarter, rising from $417 million during the same period last year.
The company said its revenue during the quarter reached $2.15 billion, up year-over-year from $1.79 billion.
On a diluted per-share basis, the company’s earnings amounted to 82 cents for the period ended June 30, compared with 65 cents during last year’s second quarter.
This report by The Canadian Press was first published July 31, 2026.
Companies in this story: (TSX:PPL)
