Alberta plans to launch a new royalty framework in November to boost production, while partnering with Pembina Pipeline on a major 1 million-barrels-per-day West Coast export project.
Pembina is named as a partner on Alberta's proposed West Coast pipeline, which could boost its midstream volumes as provincial royalty incentives encourage more production.
Alberta's royalty incentives and proposed pipeline could increase Canadian oil supply, but the timing and final approvals remain uncertain, leaving near-term oil price impact neutral.
Alberta Premier Danielle Smith announced a new preferential royalty framework arriving in November to stimulate oil and gas investment. The province is simultaneously pushing a 1 million-barrels-per-day pipeline project to the British Columbia coast, partnering with Pembina Pipeline and Trans Mountain to diversify export markets toward Asia.
Pembina Pipeline is named as a strategic partner in the development of the West Coast Oil Pipeline, which is expected to increase midstream volumes and support long-term growth as production rises.