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AltaGas makes final investment decision to build western Canadian propane export facility
HOUSTON, January 3, 2016 (PCW) – AltaGas said Tuesday it made a final investment decision to build a 1.2 million mt/yr propane export terminal on Ridley Island in British Columbia, which would be the first to be located on Canada's west coast.
The terminal would be located near Prince Rupert, British Columbia. The location offers a 10-day shipping time to Asia compared to the 25-30 day sailing period from the US Gulf Coast.
The facility is expected to come online in 1Q 2019; it is expected to cost $450-500 million with construction slated to begin early this year. AltaGas plans to offer a third party the option to take an equity position of up to 30% in the facility.
The Canadian company expects to get about 50% of the 1.2 million mt from existing facilities and new plants in the region with the remainder coming from producers and aggregators in western Canada. AltaGas expects to underpin at least 40% of the facility’s throughput under tolling arrangements.
Last May, AltaGas signed a memorandum of understanding with Astomos Energy for the purchase of at least 50% of the facility’s export capacity.
Astomos is the merged LPG divisions of Idemitsu Kosan and Mitsubishi Corporation.
AltaGas said a “definitive agreement has been finalized with Astomos containing the key commercial terms for the sale and purchase of these volumes of propane.” -- Samantha Hartke