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    West Coast Pipeline Stake Could Be A Game Changer For Pembina Pipeline (TSX:PPL)

    Simply Wall St·07/15/2026 22:32:58
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    • Earlier this year, Ottawa’s major projects office began assessing Alberta’s proposed West Coast pipeline for possible “national interest” status, with Calgary-based Pembina Pipeline Corp. joining as an experienced operator and taking a 10% ownership stake during construction, plus an option for another 10% once the line is operational.
    • If the project moves ahead, Pembina’s role in building out West Coast export capacity could enhance its midstream footprint while immediately boosting activity for engineering, construction, steel, equipment and storage suppliers tied to the build-out.
    • We’ll now examine how Pembina’s 10% construction stake in the proposed West Coast pipeline could influence its existing investment narrative and outlook.

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    Pembina Pipeline Investment Narrative Recap

    To own Pembina Pipeline, you need to believe in the durability of fee-based midstream cash flows tied to Western Canadian energy and the company’s ability to profitably expand export infrastructure. The proposed West Coast pipeline, where Pembina holds a 10% construction stake, aligns with that thesis but does not materially change the near term focus on managing toll resets and keeping leverage in check.

    The recent decision to move ahead with the Heartland Extraction Plant, backed by a long term ethane supply agreement with Dow starting in 2029, is particularly relevant here. It underscores how Pembina is layering on contracted growth projects alongside potential new pipeline capacity, reinforcing the idea that project execution risk and timing remain central to the story.

    Yet even as new projects stack up, investors should be aware that tighter toll settlements and high upfront capital needs could...

    Read the full narrative on Pembina Pipeline (it's free!)

    Pembina Pipeline's narrative projects CA$9.1 billion revenue and CA$2.1 billion earnings by 2029. This requires 6.1% yearly revenue growth and about a CA$0.5 billion earnings increase from CA$1.6 billion today.

    Uncover how Pembina Pipeline's forecasts yield a CA$69.72 fair value, in line with its current price.

    Exploring Other Perspectives

    TSX:PPL 1-Year Stock Price Chart
    TSX:PPL 1-Year Stock Price Chart

    Five members of the Simply Wall St Community currently see Pembina’s fair value anywhere between CA$44.78 and CA$224.98, showing how far apart individual views can be. When you set those opinions against Pembina’s dependence on large, capital heavy projects such as LNG, petrochemical and new pipeline infrastructure, it underlines why many investors want to weigh several perspectives before deciding how resilient the business might be over time.

    Explore 5 other fair value estimates on Pembina Pipeline - why the stock might be worth 37% less than the current price!

    Reach Your Own Conclusion

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.