ACE rail project to boost Canadian LPG export market

July 22, 2026 By LP Gas 0 Comments

Keyera Corp., AltaGas Ltd. and CN plan to advance the Alberta Corridor Export (ACE) Rail Terminal Project, a Canadian energy infrastructure investment designed to strengthen Canada’s energy supply chain. The partnership combines Keyera’s ACE Rail Terminal with CN’s rail network and AltaGas’ West Coast export platform.

ACE will be owned and constructed by Keyera on Keyera-owned lands within Alberta’s Industrial Heartland and will be supported by long-term commercial arrangements with AltaGas and CN.

With unit train loading capabilities, the ACE Rail Terminal is designed to provide the most efficient and scalable rail solution connecting the Fort Saskatchewan region to West Coast export markets through CN’s network and AltaGas’ growing global export platform, according to the companies.

The project represents an initial investment by Keyera of about $240 million, including about $100 million incremental to Keyera’s previously disclosed 2026 growth capital guidance.

Upon start-up, the ACE Rail Terminal is expected to provide transportation capacity of about 45,000 barrels per day of propane and butane from the Fort Saskatchewan region to West Coast export facilities.

The infrastructure is highly scalable and will be able to support the transportation of additional energy products from the region as market opportunities evolve, the companies say.

The ACE Rail Terminal will utilize a unit train capable rail loop design intended to improve loading efficiency, reduce handling requirements and lower transportation costs relative to traditional rail solutions. Construction activities are underway, including land clearing activities, with an expected in-service date of mid-2028, aligned with the completion of Keyera’s KFS Fractionation III project.

▶ Record exports

CN says its propane export shipments from South Beamer, Alberta, Canada, to Watson Island, British Columbia, Canada, reached an all-time monthly record for the corridor in May, with carloads rising 40 percent from May 2025 and beating its previous monthly record from August 2024. CN says it will continue to work closely with Pembina and supply chain partners to meet the strong demand for Canadian propane exports. Pembina operates a rail terminal on Watson Island, where it moves LPG from rail cars to vessels destined for international markets.

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