Pembina Pipeline Corp. PPL-T says it’s going ahead with its $570-million Heartland extraction plant project.
The 750-million-cubic-feet-per-day straddle plant will extract natural gas liquids under Pembina’s extraction rights on the Yellowhead Pipeline.
It is expected to enter service in late 2029.
Pembina has also signed a long-term agreement at the Heartland project to supply Dow DOW-N with ethane beginning in late 2029, scaling to 22,500 barrels per day by the end of 2030.
In connection with the deal, Pembina and Dow have amended the terms of an earlier deal that will now see Pembina supply 35,000 bpd of ethane commencing with the start up of Dow’s Path2Zero project, which is expected to enter service in 2029.
Including the Heartland agreement and the amended supply agreement, Pembina will supply Dow with a total of 57,500 bpd of ethane, a 15 per cent increase compared to the original agreement of 50,000 bpd.