Pembina Pipeline Corporation (TSX: PPL; NYSE: PBA) has signed a non-binding Heads of Agreement to participate in a proposed crude oil pipeline project connecting Alberta to Canada's West Coast, the company said in a press release.

The agreement includes the Government of Canada, the Province of Alberta, Trans Mountain Corporation, and the Alberta Petroleum and Marketing Commission. The proposed pipeline would have a capacity of approximately one million barrels per day and would follow the existing Trans Mountain pipeline right of way. A related export terminal is also part of the proposal.

Under the framework, the project would be held through a development company jointly owned by the Government of Canada, the Province of Alberta, and Pembina. A working interest would be reserved for Indigenous partners to acquire at commercial operations. Pembina's economic interest during construction would be 10%, with the opportunity for up to an additional 10% once the project reaches commercial operation.

Trans Mountain Corporation would serve as the lead project proponent, responsible for construction, regulatory processes, stakeholder and Indigenous engagement, and subsequent operation of the asset. Pembina's stated role is to provide an independent perspective on cost, schedule, and execution.

Pembina said it is currently reviewing development plans and initial capital cost estimates. The company retains full discretion over any final investment decision and said it will have no at-risk development capital prior to that decision. Definitive agreements are targeted for September 2026.

"We are proud to bring our development and execution expertise to a project of this national significance," said Scott Burrows, President and Chief Executive Officer of Pembina. "Our participation will be evaluated through the same disciplined lens we apply to every capital decision."

Pembina's participation remains subject to the satisfaction of certain conditions.