Pembina Secures Settlement with Shippers for Alliance Pipeline
Pembina Pipeline reached a 10-year settlement with shippers on the Alliance Pipeline, revising toll structures and filing for Canada Energy Regulator approval. The agreement lowers long-term tolls and introduces revenue sharing on biddable capacity.
(P&GJ) — Pembina Pipeline Corporation has reached a negotiated settlement with shippers on the Canadian portion of the Alliance Pipeline, filing the agreement with the Canada Energy Regulator (CER) for approval. The 10-year deal revises toll structures and offers long-term certainty for shippers.
“We are pleased after many months of complex, yet productive, discussions to have reached a negotiated solution with the Shipper Committee, consisting of over 30 members,” said Scott Burrows, Pembina’s president and CEO. “The negotiated tolls are competitive and will provide toll certainty to Shippers. The Settlement is fair and equitable to Alliance and all Shippers. We now look forward to a timely response from the CER.”
The agreement introduces a new term-differentiated toll schedule that reduces long-term firm tolls by about 14% on a volume-weighted basis. It covers November 1, 2025, through October 31, 2035, and includes a one-time option for existing shippers to extend terms at the new rates.
Revenue from biddable transportation services above firm capacity — 1.325 billion cubic feet per day — will be split equally between Alliance and shippers, aligning incentives for both sides. The settlement does not retroactively affect interim tolls currently in place; those will become final through October 2025.
As part of the agreement, Alliance will return roughly C$95 million in eligible recoverable costs currently held on its balance sheet. Pembina estimates the new toll structure and revenue sharing will reduce Alliance’s long-term firm service revenue by approximately C$50 million annually, with additional impacts tied to commodity price-driven revenue sharing.
The Shipper Committee approved the settlement on July 23, 2025. Pembina is seeking CER approval by September 15, 2025.
Separately, Alliance is soliciting non-binding interest in a potential regional short-haul expansion to move up to 350 million cubic feet per day of gas to Alberta’s Industrial Heartland, with service targeted for late 2029.