By Nicholas G. Miler
Pembina Pipeline said it has reached a settlement with shippers establishing tolls for the Canadian portion of the Alliance natural gas pipeline.
The settlement, which will last for 10 years, sets a new 10-year toll and reduces the current one-year, three-year and five-year tolls. The Calgary, Alberta, company will also now share 50% of the revenue from the Alliance pipeline for volumes above 1.325 billion cubic feet a day with shippers.
Pembina expects the settlement to reduce long-term firm service revenue by 50 million Canadian dollars (US$36.7 million) over the next ten years. The revenue-sharing agreement will also lead to an additional revenue hit, worth C$40 million, based on a C$1.50 natural gas price.
Shippers voted to support the settlement Wednesday, but the deal is still contingent on approval by the Canadian Energy Regulator.
Write to Nicholas G. Miller at nicholas.miller@wsj.com
(END) Dow Jones Newswires
July 24, 2025 17:48 ET (21:48 GMT)
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