Pembina to supply Dow Canada net-zero petchem project with ethane

TORONTO (ICIS)–Canadian midstream energy firm Pembina Pipeline has entered into long-term agreements to supply Dow’s upcoming net-zero petrochemicals project at Fort Saskatchewan in Alberta province with 50,000 bbl/day of ethane.

Pembina is a major supplier of ethane to the petrochemical industry in Alberta.

Dow announced in November that it will proceed with the construction of a new integrated ethylene cracker and derivatives facility in Fort Saskatchewan, to be completed in two phases, with in-service dates of 2027 and 2029.

The first phase of the “Path2Zero Project” includes about 1.285 million tonnes/year of ethylene and polyethylene (PE) capacity and the second phase adds another 600,000 tonnes/year.

Dow’s project represents “a significant increase” to the current ethane market in Alberta and is an important development for the oil and gas industry in the Western Canadian Sedimentary Basin (WCSB), Pembina said.

To support Dow’s project, Pembina is evaluating several possible options to invest in new infrastructure, including incremental deep-cut processing capacity at certain gas plants, de-ethanizer expansions at existing fractionation facilities, potential new straddle facilities, and smaller expansion opportunities, it said.

Furthermore, the Path2Zero Project will directly drive incremental ethane demand, the extraction of which should also increase the supply of other associated natural gas liquids (NGL) – propane, butane and condensate, Pembina said.

The resulting NGL volume growth across the WCSB would benefit Pembina over a period of many years and support higher utilization and potential expansions of its asset its Alberta, it said.

Pembina’s assets include gas processing facilities, the Redwater fractionation complex, the Peace and Northern pipeline systems, the Alberta Ethane Gathering System, and storage facilities.

Thumbnail photo of Pembina’s Redwater fractionation complex north east of Edmonton, Alberta; photo source: Pembina