Pembina taking a go-slow approach to new natural gas pipeline buildout

The corporate logo of Pembina Pipeline Corp. is shown in this undated handout photo. THE CANADIAN PRESS/HO, Pembina Pipeline Corp. *MANDATORY CREDIT*

CALGARY — Pembina Pipeline Corp. is taking a go-slow approach to the buildout of a natural gas pipeline expansion spanning northeast British Columbia and northwest Alberta to ensure the added transportation capacity comes online when producers need it.

The Calgary-based energy infrastructure company has regulatory approval in-hand for a new 89-kilometre pipeline connecting Taylor, B.C. with Gordondale, Alta., at an estimated capital cost of about $341 million.

Late Thursday, Pembina green-lit an initial $115-million phase of that project — a 16-kilometre segment of pipe connecting Alberta gas fields to a pump station at Gordondale. It’s slated to start up early next year.

During an analyst conference call Friday, company executives were quizzed on why they decided to only move forward with part of the project for the time-being, and whether it was due to any change in commodity price outlook or shift in customers’ drilling plans.

Chief operating officer Jaret Sprott said it’s about spending capital prudently.

“We will need that project full-stop one day,” he said.

“Our people really took a step back and worked collaboratively with operations, our engineering (and) hydraulics teams, and they came up with a little bit more of a capital-light solution ... It still allows us to meet our customers’ needs and meet their egress demand almost as they grow. It’s almost on-demand.”

New pipeline

On Thursday, Pembina also gave the official go-ahead to a new 95-kilometre pipeline that would ship 120,000 barrels per day of natural gas liquids between Birch and Taylor, B.C., starting late next year. That project has a price tag of $310 million.

CEO Scott Burrows said Pembina is poised to benefit from projects peers are undertaking. Enbridge Inc. has plans to expand its cross-Canada system and some of its U.S. network to move more oilsands crude south.

And Trans Mountain Corp. aims to add capacity to its line from Alberta to the Vancouver area.

“That’s obviously going to drive growth in the oilsands, which should have a pull on condensate, which should be good for our overall system,” he said.

Condensates, or natural gas liquids, are used to blend with tarry oilsands bitumen, enabling it to flow through pipelines. Pembina’s network, including the two newly-sanctioned expansions, reaches into liquids-rich zones of Alberta and B.C.

On Thursday, Pembina said earnings for the final three months of 2025 were $489 million, or 78 cents per share, compared to $572 million, or 92 cents per share, a year earlier.

Revenue fell to $1.91 billion from $2.15 billion during the same 2024 quarter.

Pembina has partnered with the Haisla Nation on the Cedar LNG project in Kitimat, B.C., which would enable natural gas to be shipped by tanker across the Pacific in an ultra-chilled liquid state. Pembina says advanced construction of the floating LNG vessel is more than 35 per cent complete

This report by The Canadian Press was first published Feb. 27, 2026.

Companies in this story: (TSX:PPL)

Lauren Krugel, The Canadian Press