Pembina greenlights C$570m Heartland Extraction Plant with 750 mcf/d capacity
PBA•Pembina has approved a C$570m ($412.8m) Heartland Extraction Plant in Alberta, featuring 750 mcf/d capacity and scheduled to start operations in late 2029. The project includes a long-term ethane supply deal with Dow rising to 57,500 bpd and 9,500 bpd propane-plus marketing rights.
1. Project Approval and Scope
Pembina has signed off on the C$570m Heartland Extraction Plant in Alberta to process up to 750 mcf/d of natural gas liquids under its Yellowhead Pipeline extraction rights, expanding upon the earlier Yellowhead Extraction proposal.
2. Development Timeline
Construction is slated to commence following approval, with the Heartland facility expected to begin operations in late 2029, reinforcing Pembina’s presence in the Alberta Industrial Heartland.
3. Ethane Supply Agreements
Pembina has secured a long-term agreement to supply Dow with 22,500 bpd of ethane from 2029, and amended its existing contract to deliver a total of 57,500 bpd when Dow’s Path2Zero project comes online.
4. Financial Outlook
Post-extraction, Pembina will retain ownership of up to 9,500 bpd of propane-plus NGL, capturing downstream fractionation and marketing margins, with the project’s EBITDA build multiple estimated between 5 and 7 times.
