Saturday, September 12, 2026
HH: $2.77 AECO: C$1.48/GJ
Natural Gas September 12, 2026

Pembina Sanctioned Heartland Extraction for $570 Million. Dow's Ethane Starts in 2029

Pembina is proceeding with the Heartland Extraction Plant, a roughly $570 million project with a late-2029 in-service target. A long-term agreement supplies Dow with ethane from the plant beginning in late 2029, scaling to 22,500 barrels per day by the end of 2030.

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This is an ethane plant on Yellowhead gas. It is not a 2026 volume add

Pembina Pipeline Corporation (TSX: PPL, NYSE: PBA) said it is proceeding with the Heartland Extraction Plant in Alberta's Industrial Heartland. Pembina put the cost at about $570 million and the in-service date in late 2029. The project monetizes liquids extraction rights on the Yellowhead Pipeline and also produces propane-plus NGLs.

Pembina signed a long-term agreement at the plant to supply Dow with ethane beginning in late 2029, scaling to 22,500 barrels per day by the end of 2030. In connection with that commitment, Pembina and Dow amended their earlier ethane supply agreement. Under the amended terms, Pembina will supply Dow with 35,000 barrels per day of ethane from its existing portfolio when Dow's Path2Zero project starts, expected in 2029. Combined with Heartland, that is 57,500 barrels per day of ethane once both pieces are running.

Pembina has tied the sanction to its 5 to 7 percent compound annual fee-based adjusted EBITDA per share growth target through 2030. This is midstream fee paper. It does not change 2026 NGTL receipts or AECO.

Neutral read

PPL is on the listed midstream list. Banks were skipped. $570 million, late 2029, and 22,500 barrels a day of Heartland ethane are the facts. Write this as a 2029 extraction plant, not as a 2026 gas-price call. Watch Path2Zero timing, Yellowhead volumes, and whether the 57,500-barrel combined ethane commitment shows up in fee-based EBITDA as advertised.

Professional Energy Analysis
Published Sep 12, 2026
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