Pembina Pipeline Corporation, a major Canadian pipeline and midstream operator, announced on February 22 that it has entered into an agreement to supply and transport up to 50 Mb/d of ethane to Dow Chemical Canada’s Path2Zero project, a major expansion of Dow’s ethane cracking facility located in Fort Saskatchewan, AB. Pembina has agreed to transport the ethane on its wholly owned Alberta Ethane Gathering System (AEGS, purple lines in map below) to the Dow site in Fort Saskatchewan (red dot).
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- Blog
Never Let Me Down - Pembina Inks Ethane Supply Deal with Dow's Alberta Ethane Cracker Expansion
With an announcement in late 2023 by Dow Chemical that it would be undertaking an enormous expansion of its ethylene production site in Fort Saskatchewan, AB, it was immediately clear that Alberta’s ethane supplies would need to increase by a significant 110 Mb/d. As we’ll discuss in today’s RBN blog, a deal was signed in February between Dow and Pembina Pipeline Corp. that calls for the midstreamer to provide up to 50 Mb/d of additional ethane supplies and, according to executives at Pembina’s investor day earlier this month, will require the company to invest between C$300 million (US$220 million) and C$500 million (US$367 million) to build out its existing NGL/ethane infrastructure.
- Blog
Wish You Were Here - Delay to Dow's Alberta Cracker Expansion Creates Uncertainty for Energy Suppliers
Alberta’s petrochemical industry received bad news in late April when Dow, one of the world’s largest petrochemical companies, announced that it was delaying construction on an immense expansion of its ethane cracker in Fort Saskatchewan, AB, only a little more than a year after sanctioning the project. Although the length of the delay remains uncertain, the slowdown has created unwanted ripples across other projects that were tied to the expansion, especially for companies working to provide a substantial increase in ethane and natural gas supplies that will be required by the project. In today’s RBN blog, we take a closer look at the delay and what it might mean for Alberta’s energy industry.
- Blog
Shock to the System - Alberta's Ethane Demand to Soar with Approval of New Dow Ethane Cracker
The demand for ethane by Alberta’s petrochemical industry has experienced a slow expansion in the past 20 or so years. However, that demand is likely to increase sharply by the end of the decade now that Dow Chemical has sanctioned a major expansion at its operations in Fort Saskatchewan, AB, that will more than double the site’s ethane requirements. As we discuss in today’s RBN blog, this will call for an “all-hands-on-deck” approach to increasing Alberta’s access to ethane supplies from numerous sources.
