Pembina Pipeline Corporation, one of Canada’s largest midstream companies, announced its Q3 2025 earnings on November 6 which incorporated a raft of updates for its suite of pipeline and fractionator expansions to take on Western Canada’s expected NGL growth over the next several years. The company also advanced a key LNG marketing arrangement as part of its commitment to the under-construction Cedar LNG project at Kitimat, BC.
Key announcements included:
- Construction of its new 55 Mb/d propane-plus (C3+) Redwater Fractionator (RFS IV) is 75% complete and remains on track to begin operations in Q2 2026. The start up of this unit will bring fractionation capacity at the Redwater complex to ~256 Mb/d (which includes 60 Mb/d of C2 ethane fractionation capacity at the RFS I and RFS II units).
- Pipeline expansion announcements included:
- Fox Creek-to-Namao: 70 Mb/d expansion that is part of the company’s larger Peace Pipeline system to increase NGL shipment capacity from West Central Alberta to the Namao hub near the Redwater fractionation complex. A final investment decision (FID) is expected by the end of 2025.
- Taylor-to-Gordondale: a new pipeline to link NGL production growth in the British Columbia Montney into the Peace Pipeline and is intended transport up to 118 Mb/d of condensate (field condensate) from Taylor, BC to a connection with the Peace Pipeline near Gordondale, AB. On November 7, the Canada Energy Regulator (CER) recommended approval for the project to the federal Governor-in-Council with a decision expected by early 2026. The company is contemplating FID in 2026.
- Birch-to-Taylor: a pipeline proposal to increase throughput capacity from Birch, BC to Taylor, BC to accommodate anticipated NGL growth from the Montney and would ostensibly be connected to the Taylor-to-Gordondale expansion. FID is anticipated in 2026.
- Pembina announced on November 5 that it had entered into a 20-year contractual agreement to supply 1 million tonnes per annum (MMtpa) of LNG to Petronas from the under-construction Cedar LNG project. This marks the first step in Pembina’s remarketing of its 20-year 1.5 MMtpa tolling and liquefaction agreement that it entered in June 2024 to bring about a positive final investment decision for the construction of Cedar LNG. The company reported that it expects to reach definitive agreements for the remarketing of the remaining 0.5 MMtpa of capacity by the end of 2025. Cedar LNG is a 3.3 MMtpa (~400 MMcf/d) liquefaction plant under construction as part of a 49.9%(Pembina)/50.1% (Haisla) joint venture with the Haisla First Nation with a planned in-service of late 2028.
- The Greenlight Electricity Centre, a 50/50 partnership with Kineticor, made additional progress. As proposed, the project is working toward the construction of up to 1,800 MW of natural gas-fired combined-cycle power generation that would be tied to future data centres in Sturgeon County, AB. An agreement has been signed for the delivery of two turbines with a total generation capacity of 900 MW for the first phase of the project. FID is anticipated in the first half of 2026 with an in-service date targeting 2030.
- The company’s Alliance pipeline will launch a binding open season for a new point-to-point service agreement for up to 350 MMcf/d of gas from a point in northwest Alberta to Fort Saskatchewan, AB. Pembina suggests that agreement could be tied to gas delivery for the Greenlight Electricity Centre. Although not explicitly mentioned by Pembina, the agreement may involve capacity commitments to ATCO’s proposed 1.1 Bcf/d Yellowhead Pipeline that would ship gas from northwest Alberta to Fort Saskatchewan.
