AltaGas reaches agreement to export propane

AltaGas

CALGARY, A.B. – A preliminary agreement is now in place with a Tokyo based Liquefied Petroleum Gas importer and trader for the sale of half the propane that may be exported from a deep-water terminal northwest of Vancouver.

Calgary based AltaGas says a deal is in the works with Astomos Energy Corporation which would buy at least 50 per cent of the one point two million tonnes of propane.

AltaGas President David Harris says the long-term agreement is a major step forward in underpinning development of the proposed Ridley Island Propane Export Terminal, which would be Canada’s first propane terminal.

He also says, “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.”

AltaGas, part owner and operator of a similar LPG export terminal in Ferndale, Washington, expects to reach a financial investment decision this year on the anticipated 400 to 500 million dollar terminal and commence commercial operation in 2018.