Proposed export terminal a step closer to reaching Asian markets

May 27, 2016 By    

AltaGas LPG Limited Partnership, a subsidiary of AltaGas Ltd., entered an agreement with Astomos Energy Corp. to set terms for the sale and purchase of LP gas from the proposed Ridley Island Propane Export Terminal near Prince Rupert, British Columbia, Canada.

Under terms of the agreement, Japan-based Astomos will purchase at least 50 percent of the 1.2 million tons of propane available to be shipped from the export terminal each year. Astomos currently operates a fleet of 21 very large gas carriers that support its importing, distribution and international trading businesses.

“This export terminal is one of the key building blocks of our strategy to build out natural gas processing and liquids separation capacity in the Montney formation, a leading North American gas play,” says David Harris, president and CEO of AltaGas, in a press release. “The additional processing capacity we are building and connectivity to the export terminal provide upstream energy producers with unparalleled access at the most competitive rates to these premium markets.”

According to AltaGas, the proposed export terminal presents an opportunity for its customers to reach Asian markets with propane supply. The export terminal site is connected to Canadian National’s existing rail network and AltaGas processing plants.

A formal environmental review process of the export terminal site is underway, AltaGas says. The company expects to reach an investment decision this year for the export terminal, which is expected to cost between $400 million and $500 million. Operations would begin in 2018, AltaGas says, assuming the necessary approvals are met.

Kevin Yanik

About the Author:

Kevin Yanik is the senior editor of LP Gas Magazine. Contact him at kyanik@northcoastmedia.net or 216-706-3724.

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