Pembina Amends Ethane Supply Agreement with Dow, Increases Supply to 57,500 bpd
Pembina Pipeline (PBA) announced that in connection with the new firm volume commitment at Heartland Extraction Plant, Pembina and Dow Inc. (DOW) have amended the terms of their previously announced ethane supply agreement. Under the amended long-term agreement, Pembina will supply Dow with 35,000 bpd of ethane commencing with the start up of Dow's Path2Zero project, which is expected to enter service in 2029. Pembina will source the 35,000 bpd of ethane from its existing supply portfolio, leveraging its integrated value chain, including deep cut gas processing plants, ethane-plus transportation franchise, and fractionation capabilities. Including the new agreement at HEP and the amended supply agreement, Pembina will supply Dow with a total of 57,500 bpd of ethane, representing a 15% increase compared to the original agreement of 50,000 bpd, the company said.