Canadian midstream advances NGL plants, rail and pipeline

Three Canadian midstream companies announced major projects to expand natural gas liquids (NGL) processing, rail export capacity and crude pipeline capacity as the national wildfire season begins.

Pembina Pipeline approved the $570 million Heartland Extraction Plant, a processing facility on the Yellowhead Pipeline corridor with capacity of 750 million cubic feet per day. The project is expected to enter service in late 2029 and reach about 22,500 barrels per day of NGLs by the end of 2030. Pembina has a long‑term ethane supply agreement with Dow and increased its total commitment to Dow to 57,500 barrels per day, a 15% rise. Management projects an EBITDA multiple of roughly 5x to 7x based on long‑term average pricing and a revenue mix of fixed fees and exposure to frac spreads.

Keyera, AltaGas and Canadian National Railway formed a partnership to develop the Alberta Corridor Export (ACE) Rail Terminal. The terminal is planned to load unit trains in Fort Saskatchewan and move roughly 45,000 barrels per day of propane and butane to AltaGas’s West Coast export facilities. Keyera will own and operate the terminal and is committing an initial $240 million of investment, including $100 million of incremental capital. The partners target operations by mid‑2028.

South Bow closed an open season for the Prairie Connector pipeline and secured 20‑year binding capacity commitments for crude transportation from Hardisty, Alberta to U.S. delivery points. The company is targeting a final investment decision by mid‑2027. The proposal calls for about 380 kilometres of new 36‑inch pipeline and use of roughly 150 kilometres of existing infrastructure. South Bow plans to publish details on pre‑FID work and expected spending by the end of the second quarter.

Pembina, Keyera and South Bow are constituents of the Alerian Midstream Energy Select Index, which is available through certain energy infrastructure ETFs.

Wildfire season is a stated operational concern for midstream firms. Canada’s interagency fire centre recorded more than 120 active fires as of June 4, with the largest concentrations in Manitoba, followed by British Columbia and Alberta. In previous years, wildfires forced temporary shutdowns and reduced volumes at energy facilities. Regulators and operators are monitoring conditions, and no major wildfire‑related impacts on Canadian oil operations had been reported as of early June.