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Pembina Pipeline Sanctions Heartland Extraction Plant Strengthening its Leading NGL Franchise
Pembina Pipeline Sanctions Heartland Extraction Plant Strengthening its Leading NGL
About this update from Pembina Pipeline Corporation
[{"type":"text","content":"\nPembina Pipeline Corporation (\"Pembina\" or \"the Company\") (TSX: PPL; NYSE: PBA) announced today that it is proceeding with the Heartland Extraction Plant (\"HEP\") and provided an update on its ethane supply agreement with Dow.\n\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260525507282/en/\nThe sanctioning of HEP represents a capital efficient, low-risk monetization of Pembina's liquids extraction rights on the Yellowhead Pipeline, with future growth potential. Through new and amended agreements, Pembina and Dow reached a mutually beneficial solution that has increased the overall ethane supply commitment, better aligned the volume profile with Dow's revised Path2Zero project schedule, and supported the economics of the HEP project. As previously disclosed, Pembina pursued an optimized ethane portfolio solution in support of its Dow supply commitments and is excited to sanction this project, which also provides Pembina the economic benefits of propane-plus natural gas liquids (\"NGL\") production. Additionally, sanctioning HEP is another important step towards realizing Pembina's recently announced 5-7 percent fee-based adjusted EBITDA per share growth target to 2030.\n\n\nHeartland Extraction Plant Project Highlights\n\nA new 750 million cubic feet per day straddle plant to extract NGL under Pembina's extraction rights on the Yellowhead Pipeline.\n\n\n\nThis upsized project is an evolution of the previously disclosed Yellowhead Extraction Plant project. HEP now includes incremental capacity to accommodate future additional opportunities on a capital efficient basis, enhancing Pembina's Alberta Industrial Heartland footprint.\n\n\n\nPembina has signed a long-term agreement at HEP to supply Dow with ethane beginning in late 2029, scaling to 22,500 barrels per day (\"bpd\") by the end of 2030.\n\n\n\nFollowing extraction at HEP, ethane-plus mix will be processed at a combination of Dow's Fort Saskatchewan facility and Pembina's Redwater Complex.\n\n\n\nPembina will retain the associated propane-plus production related to the project and will benefit from downstream fractionation and marketing of up to 9,500 bpd of propane-plus NGL.\n\n\n\nHEP has an estimated cost of approximately $570 million, and an anticipated in-service date in late 2029.\n\n\n\nEBITDA gen...