Pembina Greenlights $570-Million Heartland NGL Plant in Alberta
Pembina Pipeline has approved construction of its Heartland Extraction Plant in Alberta, expanding its NGL footprint and deepening a long-term ethane supply partnership tied to Dow’s Path2Zero project.
(P&GJ) — Pembina Pipeline Corp. is moving ahead with construction of its Heartland Extraction Plant (HEP) in Alberta, advancing a key natural gas liquids (NGL) project tied to a revised long-term ethane supply agreement with Dow.
The Calgary-based midstream company said the new plant will extract NGLs from volumes transported on its Yellowhead Pipeline and is expected to enter service in late 2029. The project is designed to process up to 750 million cubic feet per day and will support growing ethane demand tied to Dow’s Path2Zero petrochemical expansion.
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Pembina estimates the project will cost about $570 million. In addition to supplying ethane to Dow, the company expects to benefit from associated propane-plus production and downstream fractionation opportunities.
Under updated agreements, Pembina will supply Dow with 22,500 barrels per day (bpd) of ethane from the new facility by the end of 2030. The revised arrangement also amends an existing supply deal, bringing Pembina’s total long-term ethane commitment to Dow to 57,500 bpd, up from the originally planned 50,000 bpd.
Pembina said the revised structure better aligns supply volumes with Dow’s construction timeline for the Path2Zero project while improving the economics of the Heartland plant.
Scott Burrows, Pembina’s president and CEO, said the agreement strengthens the company’s relationship with Dow and supports long-term growth in its NGL business. He added that the project leverages Pembina’s existing infrastructure network while helping drive additional hydrocarbon demand in Western Canada.
The Heartland Extraction Plant is an expanded version of the previously proposed Yellowhead Extraction Plant and includes additional capacity for future growth opportunities in Alberta’s Industrial Heartland region.