Pembina Pipeline Reaches Settlement With Shippers on Alliance Pipeline
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Pembina Pipeline Corporation said Alliance Pipeline Limited Partnership has reached a negotiated settlement with shippers and interested parties on the Canadian portion of the Alliance Pipeline and filed an application with the Canada Energy Regulator (CER) seeking approval of the settlement.
Separately, Alliance said it is soliciting non-binding expressions of interest for a new regional short-haul transportation service.
“We are pleased after many months of complex, yet productive, discussions to have reached a negotiated solution with the shipper committee, consisting of more than 30 members,” said Scott Burrows, Pembina’s president and chief executive officer.
“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,” added Burrows.
In November 2024, the CER ordered Alliance to submit for approval a detailed toll application justifying why its current tolling methodology remained compliant with the Canadian Energy Regulator Act, or a new tolling methodology application. Likewise, the CER ordered that the current tolls be deemed interim tolls until resolution of the above. Following the CER order, Alliance worked collaboratively with the shipper committee towards a negotiated settlement.
The settlement is contingent on approval by the CER. Alliance has filed an application with the CER requesting approval of the settlement by September 15, 2025. The full application is available for viewing HERE.
The settlement is for a ten-year term effective November 1, 2025 - October 31, 2035. The new tolls are expected to reduce existing long-term firm tolls by an average of 14 percent on a volume weighted average basis.
The settlement offers existing long-term firm shippers a one-time term extension option, enabling shippers to take advantage of the new term-differentiated tolls, effective November 1, 2025. Alliance anticipates a significant portion of contracted volumes to take advantage of the 10-year toll, thereby extending the weighted average term of Alliance’s contractual profile
Alliance has a proven track record of high reliability and high utilization and is unique in its ability to transport liquids-rich, Canadian-produced natural gas, while providing a cross-border conduit to high demand U.S. markets. Pembina said looks forward to continuing to deliver exceptional customer service and maximizing the value of this critical and highly differentiated North American energy infrastructure asset.
Pembina is a leading energy transportation and midstream service provider that has served North America’s energy industry for more than 70 years. Pembina owns an integrated network of hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and an export terminals business. Through its integrated value chain, they seek to provide safe and reliable energy solutions that connect producers and consumers across the world, support a more sustainable future and benefit customers, investors, employees and communities.
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