While natural gas prices remain volatile, midstream investment in Western Canada tells a very different story — especially in the Montney.
Over the past year, major infrastructure operators have advanced or completed several key gas processing projects across northern Alberta, reinforcing one clear message: the Montney’s growth cycle is far from over.
Three projects highlight that momentum.
Pembina – Wapiti Gas Plant Expansion
Pembina’s Wapiti Gas Plant expansion is progressing on schedule and on budget, with an expected in-service date in Q1 2026.
The project is part of roughly $850 million in capital projects nearing completion across Pembina’s system and is designed to:
- Increase gas processing capacity
- Support sustained Montney production growth
- Accommodate rising NGL volumes tied to liquids-rich drilling
Management described Wapiti as a near-term, low-risk expansion positioned to capture incremental Montney volumes beginning in early 2026 — exactly the type of brownfield growth project midstream companies favor in the current market.
Keyera – Wapiti & Simonette Facilities
Keyera’s commentary on its Wapiti and Simonette plants provides further confirmation of the region’s strength.
Both facilities sit in the liquids-rich fairway of the Montney, an area management repeatedly described as:
- The most economic portion of the basin
- Less sensitive to weak AECO pricing
- Driven primarily by liquids value rather than dry gas margins
Throughput at both plants continues to rise, with contracted volumes steadily increasing. These facilities were specifically cited as contributors to year-over-year growth in Keyera’s Gathering & Processing segment.
Keyera also highlighted strong interconnectivity between Wapiti, Simonette, and its broader northern Alberta system — allowing flexible routing, optimization between plants, and higher overall utilization.
Looking ahead, management confirmed:
- Capital-efficient debottlenecking opportunities in the near term
- Clear line of sight to further expansions
- Potential for an additional gas processing facility over time
Importantly, customers are already contracting capacity well in advance — not because of gas prices, but because processing capacity in the area is becoming scarce.
AltaGas – Pipestone II Gas Processing Plant
AltaGas’ Pipestone II plant has reached mechanical completion, with commissioning underway and full operations expected by late 2025.
The project was executed with:
- Over 420,000 construction hours
- Zero serious injuries
- No regulatory, environmental, or quality issues
Strategically, Pipestone II significantly expands AltaGas’ Montney processing footprint and is expected to:
- Deliver incremental EBITDA once fully online
- Increase funding capacity heading into 2026
- Support downstream assets, including gas storage and global LPG exports
Management emphasized that Montney growth — increasingly tied to LNG demand — underpins the long-term value of the facility.
What This Signals About the Montney
Taken together, these projects point to several important trends:
🔹 The liquids-rich Montney is driving capital allocation
Producers continue drilling despite weak gas prices because liquids economics remain highly competitive.
🔹 Infrastructure, not supply, is becoming the constraint
Midstream companies are expanding processing capacity to keep pace with drilling — not to stimulate it.
🔹 Brownfield expansions dominate
The focus is on debottlenecking and incremental expansions rather than risky greenfield builds.
🔹 LNG is reshaping Western Canada
West Coast LNG demand is already influencing producer behavior, long-term contracting, and infrastructure planning.
Bottom Line
The Wapiti, Simonette, and Pipestone expansions all point to the same conclusion:
The Montney has entered its next phase — one defined by infrastructure buildout, liquids-driven drilling, and LNG-linked growth.
While gas prices will continue to fluctuate, the scale and timing of these projects suggest producers and midstream operators are positioning today for material volume growth through 2026 and beyond.
In Western Canada, the Montney isn’t slowing down — it’s being built out.
