Pembina's Heartland NGL Project Advances with Worley Contract Award and Ethane Supply Deals

Pembina Pipeline Corp.'s subsidiary Pembina Infrastructure and Logistics LP has awarded Worley Ltd. a contract for engineering, procurement, fabrication, and construction (EPFC) services on its Heartland NGL extraction plant (HEP). The project, which includes a new straddle plant to extract natural gas liquids (NGL), will have a nameplate capacity of 21.2 MMcfd.

The HEP project represents a capital-efficient and low-risk monetization of Pembina's liquids extraction rights on the Yellowhead pipeline. Upon sanctioning, Pembina said the project is an upsized version of its previously announced Yellowhead extraction plant project, with incremental capacity to accommodate future opportunities.

Pembina has also entered into long-term agreements to supply Dow Chemical Co. with ethane beginning in late 2029, scaling up to 22,500 b/d by end-2030. In connection with the new agreement, Pembina amended its existing ethane supply deal with Dow, increasing the total amount of ethane supplied from 50,000 b/d to 57,500 b/d.