AltaGas boosts LPG supply for global exports platform

November 13, 2023 By    

By agreeing to acquire Tidewater Midstream’s Pipestone natural gas processing and storage assets for $650 million, AltaGas Ltd. says it is strengthening its midstream value chain through an expanded footprint in the Alberta Montney and providing long-term LP gas supply for its global exports platform.

The supply gains include 3,500 barrels per day (bpd) in 2024, 6,500 bpd in H2/2025 and the potential for 11,500 bpd over the long term through capacity additions.

“The acquisition is consistent with AltaGas’ long-term strategy and provides us the opportunity to support industry-leading producers’ growth plans in one of Canada’s most prolific resource plays,” says Vern Yu, AltaGas’ president and CEO. “The assets will deliver highly contracted take-or-pay and fee-for-service revenue that will also bring meaningful long-term LPG supply for AltaGas’ global exports platform.”

The transaction is subject to regulatory approvals and customary closing conditions and is expected to close by the end of the year.

Third-quarter results

AltaGas reported strong third-quarter 2023 financial results, including in its midstream segment and global export business. The company exported a record 118,213 bpd of LPGs to Asia during the third quarter, including 11 full and one partially loaded very large gas carrier (VLGC) at the Ridley Island Propane Export Terminal in Prince Rupert, British Columbia, and eight full and one partially loaded VLGC at Ferndale, Washington.

Rail agreement

In other AltaGas news, the Canadian National Railway Co. (CN) is renewing and expanding its transportation agreement with the Calgary, Alberta-based company.

The five-year agreement leverages CN’s exclusive access to the Port of Prince Rupert. The port offers reduced port congestion, export and import terminals, and shorter transit times to key markets, according to CN.

“The agreement provides AltaGas and our customers with cost and service predictability to continue to support ongoing resource development across western Canada and provide our key downstream customers with energy security to support economic activity and fuel everyday life,” Yu says.

CN transports more than 300 million tons of natural resources, manufactured products and finished goods throughout North America every year. It connects Canada’s eastern and western coasts with the U.S. South through an 18,600-mile rail network.

Featured homepage photo: Suriyapong Thongsawang/iStock / Getty Images Plus/Getty Images

About the Author:

Brian Richesson is the editor in chief of LP Gas Magazine. Contact him at or 216-706-3748.

Comments are currently closed.