en.Wedoany.com Reported - Pembina Pipeline Corporation has signed a non-binding letter of intent with the Government of Canada, the Government of Alberta, Trans Mountain Corporation, and the Alberta Petroleum Marketing Commission to participate in a nation-building energy infrastructure project aimed at expanding Canada's crude oil export capacity.

The project proposes the construction of a new crude oil pipeline system with a capacity of approximately 1 million barrels per day, connecting Alberta to Canada's West Coast, along with a supporting export terminal. The proposed pipeline will utilize the existing Trans Mountain Pipeline southern right-of-way. The project is being advanced as a national priority, with participants including the Government of Canada, the Government of Alberta, Indigenous partners, and industry players. Under the letter of intent framework, the project will be held by a development company jointly owned by the Government of Canada, the Government of Alberta, and Pembina, with a working interest reserved for Indigenous partners, who may acquire this interest after commercial operations commence. Pembina's economic interest during construction is 10%, with the opportunity to increase its interest to up to 20% once the project enters commercial operation. Trans Mountain Corporation will serve as the project's primary sponsor, responsible for construction, regulatory processes, stakeholder and Indigenous engagement, and subsequent asset operations.

Pembina will participate as an industry operator, providing an independent perspective on cost, schedule, and execution. Leveraging over 70 years of project development and execution experience, the company will collaborate with the Trans Mountain Corporation team. Pembina is currently reviewing the project development plan and preliminary capital cost estimates, with this due diligence work continuing until a final agreement is signed, targeting September 2026.

Pembina will evaluate its participation in the project through a disciplined and rigorous framework. This multi-stakeholder structure is designed to align risks and responsibilities, and includes protective provisions for Pembina regarding matters such as cost overruns and returns. Pembina retains full autonomy over any final investment decision regarding its interest and is not required to assume risk development capital before making a final investment decision. The company plans to provide updates at appropriate milestones as the project evaluation progresses.

Scott Burrows, President and Chief Executive Officer of Pembina, stated that the project represents an opportunity to advance nation-building energy infrastructure, helping to strengthen Canada's economy and expand its access to global markets. The company will evaluate its participation using the disciplined standards applied to every capital decision, maintaining financial flexibility in a prudent manner and creating lasting value for shareholders.