Pembina Sanctions $425 Million in Pipeline Expansions; Cedar LNG Capacity Fully Contracted

Pembina has sanctioned $315 million in new pipeline expansions, including a 95-km (59-mile) Birch-to-Taylor project, while fully contracting its 1.5 MMtpy capacity at Cedar LNG.

(P&GJ) — Pembina Pipeline Corporation has sanctioned approximately C$425 million (US$315 million) in new conventional pipeline expansions in western Canada, including a 95-kilometer (59-mile) addition designed to add 120,000 barrels per day of capacity.

The newly approved projects include the Birch-to-Taylor Expansion and the Taylor-to-Gordondale Expansion, both aimed at serving growing volumes in northeast British Columbia and Alberta.

The Birch-to-Taylor Expansion includes a new 95-km (59-mile) pipeline and facility upgrades, adding approximately 120,000 bpd of propane-plus and condensate capacity. The project carries an estimated cost of C$310 million (US$229 million) and is expected to enter service in the fourth quarter of 2027. Pembina has obtained all necessary permits to begin preliminary construction activities.

“This milestone reflects strong collaboration with both Indigenous and local communities built on trust and open engagement,” said Scott Burrows, President and Chief Executive Officer. “It also reflects strong engagement with the Government of British Columbia and the BC Energy Regulator, whose guidance and regulatory oversight have helped establish a clear and responsible path forward for this project and for sustainable development in the region in the future.”

Pembina has also sanctioned the initial scope of the Taylor-to-Gordondale Expansion, which includes new and upgraded pump stations downstream of Taylor, British Columbia, and a new 16-km (10-mile) pipeline connecting Alberta production to the Gordondale pump station. That phase carries an estimated cost of C$115 million (US$85 million) and is expected to enter service in the first quarter of 2027, subject to regulatory approval.

The remaining scope of the Taylor-to-Gordondale project includes a proposed 89-km (55-mile), 16-inch pipeline. In February 2026, the Canada Energy Regulator issued a Certificate of Public Convenience and Necessity, marking the final federal approval required for the project.

Combined with the previously announced C$200 million (US$148 million) Fox Creek-to-Namao Expansion, Pembina has recently sanctioned more than C$600 million (US$444 million) in conventional pipeline projects in response to anticipated production growth in the Western Canadian Sedimentary Basin.

Separately, Pembina announced it has completed the remarketing of its 1.5 million tonnes per annum (MMtpy) of capacity at the Cedar LNG facility through long-term agreements with subsidiaries of PETRONAS and Ovintiv. The agreements fully contract Pembina’s share of Cedar LNG capacity and increase its expected base adjusted EBITDA contribution from the project.