Pembina Pipeline Going Ahead with $570M Heartland Extraction Project
The project adds 57,500 barrels per day of ethane supply to Dow and is expected to support Pembina's 5% to 7% EBITDA growth target.
- Pembina Pipeline Corporation announced yesterday it is proceeding with the $570 million Heartland Extraction Plant, a capital-efficient project monetizing its liquids extraction rights on the Yellowhead Pipeline with an anticipated late 2029 in-service date.
- New and amended agreements with Dow prompted the project approval, increasing total ethane supply commitment to 57,500 barrels per day—a 15 percent increase from the original 50,000 bpd agreement—and better aligning volumes with Dow's revised Path2Zero project schedule.
- The 750-million-cubic-feet-per-day straddle plant will supply Dow with 22,500 barrels per day of ethane by end of 2030 while Pembina retains up to 9,500 bpd of propane-plus natural gas liquids production.
- Sanctioning HEP advances Pembina's recently announced 5-7 percent fee-based adjusted EBITDA per share growth target to 2030, with projected EBITDA multiples of 5-7 times incorporating fixed-fee revenue and commodity price exposure.
- Forward-Looking risks include regulatory decisions, Indigenous consultation requirements, commodity price volatility, trade policy changes, and labour constraints, while project success depends on Dow's Path2Zero completion and prevailing market conditions.
18 Articles
18 Articles
Pembina Proceeding With Heartland Extraction Plant
Pembina Pipeline Corp. is proceeding with its C$570-million Heartland extraction plant project, a new 750 million cubic feet per day straddle facility that will extract natural gas liquids under Pembina’s extraction rights on the Yellowhead Pipeline in Alberta. It is expected to enter service in late 2029. Pembina has also signed a long-term agreement at the Heartland project to supply Dow with ethane beginning in late 2029, scaling to 22,500 ba…
This dual-use plant will extract natural gas liquids. The post L'entreprise canadien Pembina will continue its Heartland extraction project at $570M appeared first on Les Affaires.
Pembina Greenlights Heartland Extraction Plant With Late-2029 Target, Dow Anchor Deal
Pembina Pipeline (TSX: PPL) has sanctioned the $570 million Heartland Extraction Plant, a new 750 million cubic feet per day straddle facility on the Yellowhead Pipeline that nearly doubles the company’s ethane commitment to Dow. The greenlight, anchored by a long-term supply deal tied to Dow’s Path2Zero project, pushes Pembina’s total ethane deliveries to the […]
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