Pembina Pipeline Corporation has entered into a non-binding Heads of Agreement (HOA) with the Government of Canada, the Government of Alberta, Trans Mountain Corporation, and the Alberta Petroleum Marketing Commission to participate in a proposed energy infrastructure project aimed at expanding Canada’s crude oil transportation capacity and improving access to global export markets.
The proposed initiative would involve the development of a new crude oil pipeline with an estimated capacity of approximately one million barrels per day, connecting Alberta to Canada’s West Coast, along with a new export terminal. The project is intended to strengthen Canada’s energy transportation network while supporting increased market access for Canadian crude oil.
According to the agreement, the new pipeline would utilize the existing Trans Mountain pipeline right-of-way, commonly referred to as the southern route. The project is being advanced as a collaborative national infrastructure initiative involving the federal and Alberta governments, Indigenous partners, and the energy industry.
The proposed ownership structure would see the project held through a dedicated development company jointly owned by the Government of Canada, the Province of Alberta, and Pembina. A working interest would also be reserved for Indigenous partners to acquire once the project reaches commercial operation. Pembina would hold a 10 percent economic interest during the construction phase, with the option to increase its ownership by an additional 10 percent after commercial operations begin.
Trans Mountain Corporation has been identified as the lead project proponent and would oversee construction, regulatory approvals, stakeholder and Indigenous engagement, as well as the long-term operation of the pipeline and export infrastructure.
Pembina’s role would focus on providing technical expertise in project development and execution, drawing on more than seven decades of experience in pipeline infrastructure. The company said it would contribute an independent perspective on project costs, scheduling, and execution while supporting the overall development process led by Trans Mountain.
As part of the agreement, Pembina has begun reviewing the project’s development plans and preliminary capital cost estimates. This due diligence process is expected to continue through the negotiation of definitive agreements, which are targeted for completion in September 2026.
The company emphasized that its participation remains subject to meeting a number of conditions and that any investment decision will follow its established capital allocation framework. Under the proposed structure, Pembina will not commit at-risk development capital before making a final investment decision. The agreement also includes provisions designed to manage financial risk, including protections related to project costs and expected returns.
Scott Burrows, president and chief executive officer of Pembina, described the proposal as a significant opportunity to support major energy infrastructure development that could strengthen Canada’s economy and expand international market access for Canadian energy. He added that the company would continue to evaluate its participation using its disciplined investment approach to ensure the project aligns with its long-term financial objectives and delivers value for shareholders.
The Heads of Agreement is non-binding, and the project remains subject to further negotiations, regulatory approvals, and the execution of definitive agreements before construction can proceed.
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