ExpansionMay 26, 2026, 09:16 AM
Pembina Sanctions Heartland Extraction Plant; Upsizes Dow Ethane Supply
AI Summary
Pembina Pipeline Corporation announced the sanctioning of its Heartland Extraction Plant (HEP), an upsized project with an estimated cost of $570 million and an in-service date in late 2029. This plant will extract NGLs from the Yellowhead Pipeline, including 22,500 bpd of ethane for Dow by the end of 2030. Concurrently, Pembina and Dow amended their existing ethane supply agreement, increasing the total commitment to 57,500 bpd, a 15% increase from the original agreement. The project is expected to generate an EBITDA build multiple of 5-7 times, contributing to Pembina's fee-based adjusted EBITDA per share growth target.
Key Highlights
- Pembina sanctioned the Heartland Extraction Plant (HEP), a new 750 million cubic feet per day straddle plant.
- HEP has an estimated cost of approximately $570 million and an anticipated in-service date in late 2029.
- Pembina signed a long-term agreement to supply Dow with 22,500 bpd of ethane from HEP by end of 2030.
- The amended Dow supply agreement increases total ethane commitment to 57,500 bpd, a 15% rise from 50,000 bpd.
- Pembina will retain and market up to 9,500 bpd of propane-plus natural gas liquids (NGL) production from HEP.
- The project's EBITDA build multiple is expected to range from 5-7 times, supporting growth targets.
Price Impact
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