Pembina Pipeline Corp. is moving ahead with a major new natural gas liquids extraction facility northeast of Edmonton, deepening its partnership with Dow and expanding its footprint in Alberta’s Industrial Heartland.The Calgary-based company announced Monday it has sanctioned construction of the Heartland Extraction Plant, a new 750 million cubic feet-per-day straddle plant that will extract natural gas liquids from the Yellowhead Pipeline system.Pembina said the project is expected to cost roughly $570 million and enter service in late 2029.The company also confirmed it has finalized new long-term agreements with Dow that increase total ethane supply commitments while aligning deliveries with Dow’s revised Path2Zero petrochemical project timeline.Under the agreement, Pembina will supply Dow with 22,500 barrels per day of ethane from the new extraction facility beginning in late 2029.Combined with amendments to a previously announced supply agreement, Pembina said total ethane deliveries to Dow will rise to 57,500 barrels per day — a 15% increase over the original 50,000 barrel-per-day commitment.Pembina said the project will allow the company to monetize existing extraction rights while creating additional long-term growth opportunities.The company will retain associated propane-plus production from the project and expects to benefit from downstream fractionation and marketing opportunities tied to as much as 9,500 barrels per day of propane-plus natural gas liquids..Scott Burrows, Pembina’s president and chief executive officer, described the agreement as a “win-win” for both companies.“We have strengthened our relationship with Dow while advancing Pembina’s strategy and ability to deliver capital-efficient growth,” Burrows said in a statement.He added the deal strengthens Pembina’s natural gas liquids business while helping drive additional hydrocarbon demand in Western Canada.Pembina said the project supports its previously announced target of achieving 5-7% fee-based adjusted EBITDA-per-share growth through 2030.The company said project revenue will come from both fixed-fee arrangements and commodity pricing exposure, with long-term EBITDA build multiples projected between five and seven times based on historical pricing averages.
