CALGARY – An executive with natural gas shipper and processor Pembina Pipeline Corp. says recent consolidation among Canadian producers could accelerate projects and benefit its bottom line.
Pembina has a “great relationship” with both U.S.-based Ovintiv Inc. and the producer it’s planning to acquire for $3.8 billion, NuVista Energy Ltd., chief operating officer Jaret Sprott said Friday.
“It’s sad to see one of our great customers go, but it’s also exciting to see them talk about filling the gas plants faster,” Sprott told Pembina’s third-quarter results conference call.
Denver-based Ovintiv said earlier this week that one of the attractive aspects of the NuVista acquisition is the 600,000 mmbtu of long-term processing capacity it has secured. Ovintiv, which rebranded from Encana and moved from Calgary to Denver in 2020, said the deal could help it grow production in the Montney region by five per cent per year for the next three to five years.
Pembina is also expecting strong demand for the valuable natural gas liquids it processes and transports, which oilsands companies will need to dilute their growing bitumen production, enabling it to flow through pipelines, Sprott added
Earlier this week, Pembina announced a 20-year deal with Malaysia’s Petronas for one million tonnes per annum of capacity at the Cedar LNG natural gas export terminal under construction in British Columbia.
That agreement could help grow Pembina’s long-running relationship with Petronas, chief financial officer Cameron Goldade told the call.
“We already had a relationship with Petronas on the upstream side dating back to the middle of the last decade in terms of servicing them on the northeast B.C. side,” he said.
“But we would certainly love (to) see this as a beachhead to continue to try and expand that. We have a ton of respect for them as an organization.”
Pembina said it expects agreements for the remaining 500,000 tonnes per annum of capacity at Cedar LNG by the end of the year.
The US$4-billion plant, jointly owned with the Haisla Nation, remains on budget and on track to come into service in 2028, the company said.
Meanwhile, Pembina said it has more than $1 billion of proposed pipeline expansions in the works to handle growing production out of the Montney, Duvernay and Deep Basin areas of Alberta and British Columbia.
A final investment decision on an expansion to its Peace Pipeline system is expected by the end of this year. Next year, it expects to greenlight two other projects — a condensate pipeline linking Taylor, B.C., to Gordondale, Alta. and another expansion to its system in northeast B.C.
Pembina also said it and partner Kineticor are expecting to make a final investment decision on the Greenlight Electricity Centre natural gas-fired power plant in Alberta during the first half of next year.
Late Thursday, Pembina posted a profit of $286 million during the third quarter, a drop from the $385 million it earned during the same period a year earlier.
The profit amounted to 43 cents per share versus 60 cents per share during the third quarter of 2024. Analysts had on average been expecting earnings per share of 65 cents, according to LSEG Data & Analytics.
Revenue was $1.79 billion, down from $1.84 billion.
This report by The Canadian Press was first published Nov. 7, 2025.
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