Pembina Pipeline Corp., a Calgary-based company, has indicated that exploring a potential purchase of the Trans Mountain oil pipeline is not a major priority at this time. Despite the recent completion of the $34 billion Trans Mountain expansion, Pembina’s chief financial officer Cameron Goldade emphasized that there are still too many uncertainties surrounding the pipeline to support pursuing a purchase.

The pipeline is currently owned by the federal government, who acquired it in 2018 to facilitate the expansion project’s completion. However, the government has expressed a desire to divest from long-term ownership and has initiated a two-phase divestment process. Pembina, in partnership with the Western Indigenous Pipeline Group, is pursuing an Indigenous-led equity stake in Trans Mountain.

While some analysts have suggested Pembina as a logical buyer for the pipeline, challenges such as regulatory snags, delays, and budget overruns have complicated the project’s history. The final tolling structure for Trans Mountain, which will impact the pipeline’s value and potential buyer interest, is also under dispute between the Crown corporation and oil companies.

Despite these complexities, Pembina reported positive financial results for the first quarter of the year, with increased earnings and successful agreements for ethane supply and LNG facility development. The company remains focused on its ongoing projects and partnerships, including the Cedar LNG facility near Kitimat.

Overall, Pembina’s stance on the Trans Mountain pipeline indicates a cautious approach due to the existing uncertainties and complexities surrounding the asset. As the company continues to navigate its strategic priorities, the decision to pursue a purchase of the pipeline will require further assessment of the evolving situation.

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