Alta Gas has FID
November 27, 2017
AltaGas AnnouncesPositive FID on Canada's First West Coast Propane Export Terminal
CALGARY,ALBERTA--(Marketwired - Jan. 3, 2017) - AltaGas Ltd. ("AltaGas") (TSX:ALA)announced today that it has reached a positive Final Investment Decision("FID") on its Ridley Island Propane Export Terminal (the "RidleyExport Terminal"), having received approval from federal regulators.AltaGas has executed long-term agreements securing land tenure along with railand marine infrastructure on Ridley Island, and will proceed with theconstruction, ownership and operation of the Ridley Export Terminal.
The Ridley ExportTerminal is expected to be the first propane export facility on Canada's westcoast. The site is near Prince Rupert, British Columbia, on a section of landleased by Ridley Terminals Inc. from the Prince Rupert Port Authority. Thelocational advantage is very short shipping distances to markets in Asia,notably a 10-day shipping time compared to 25-days from the U.S. Gulf Coast.The brownfield site also benefits from excellent railway access and a worldclass marine jetty with deep water access to the Pacific Ocean.
"We areconsulting and working with the First Nations whose traditional territory theRidley Export Terminal is located within," said David Harris, Presidentand CEO of AltaGas. "Collaborating closely with First Nations andcommunities to create sustainable social value is of paramount importance to usand we look forward to a long and mutually beneficial relationship with theFirst Nations in the region."
"The project isa reflection of how we do business in B.C. - balancing environmental protectionwith economic development, creating opportunities and real partnerships withFirst Nations, and putting British Columbians first," said Premier ChristyClark. "This export facility is another promising development for ourprovince, connecting producers in northeast B.C. to markets in Asia."
The Ridley ExportTerminal will be designed to ship 1.2 million tonnes of propane per year and isestimated to cost approximately $450 - $500 million. Along with FID, AltaGaswill be offering a third party the option to take an equity position of up to30 percent in the Ridley Export Terminal.
"Propane exportsoff of Canada's west coast pulls together our vision of offering Canadianproducers a complete energy value chain," said Harris. "Together withour northeast B.C. infrastructure, once the Ridley Export Terminal is built andoperating, we will give producers new access to premium Asian markets for theirpropane."
Based on productionfrom its existing facilities and forecasts from new plants under constructionand in active development, AltaGas anticipates having physical volumes equal toapproximately 50 percent of the 1.2 million tonnes. The remaining 50 percent isslated to be supplied by producers and aggregators in western Canada. AltaGasexpects to underpin at least 40 percent of the Ridley Export Terminalthroughput under tolling arrangements with producers and other suppliers.
As previously announcedon May 24, 2016, AltaGas LPG Limited Partnership entered into a Memorandum ofUnderstanding with Astomos Energy Corporation ("Astomos")contemplating a multi-year agreement, for the purchase of at least 50 percentof the 1.2 million tonnes of propane available to be shipped from the RidleyExport Terminal each year. A definitive agreement has been finalized withAstomos containing the key commercial terms for the sale and purchase of thesevolumes of propane. Commercial discussions with Astomos and several other thirdparty offtakers for further capacity commitments are proceeding.
"Astomos is oneof the largest LPG players in the world providing great access to Asian marketsfor Western Canadian producers," said Harris. "We look forward tomaximizing our relationship with them."
AltaGas began theformal environmental review process in early 2016, which included submission ofthe Environmental Evaluation Document, review and final determination byfederal regulators under terms and conditions that will allow the project toproceed. AltaGas has engaged and worked closely with First Nations throughoutthe process and will continue to do so as it moves forward with the RidleyExport Terminal.
Construction isexpected to begin in early 2017 in compliance with the approval, and willproceed under the self-perform model successfully used by AltaGas to build itsother projects on time and on budget. The Ridley Export Terminal is expected tobe in service by the first quarter of 2019.
The Ridley ExportTerminal will support long-term economic stability in the region through thediversification of products at Ridley Terminals, and employment opportunitiesfor area residents and First Nations. It is estimated that 200 to 250construction workers will be hired during the construction phase and 40 to 50permanent jobs created once the facility is operational. The Ridley ExportTerminal will provide enduring community benefits along with employment andcontracting opportunities during both construction and operations phases.
AltaGas is an energyinfrastructure company with a focus on natural gas, power and regulatedutilities. AltaGas creates value by acquiring, growing and optimizing itsenergy infrastructure, including a focus on clean energy sources. For more informationvisit: www.altagas.ca.
This news releasecontains forward-looking statements. When used in this news release, the words "may","would", "could", "can", "will", "be","intend", "possible", "plan", "develop","anticipate", "target', "believe", "seek", "propose","proceed", "continue", "estimate", "expect",and similar expressions, as they relate to AltaGas or an affiliate of AltaGas,are intended to identify forward-looking statements. In particular, this news releasecontains forward-looking statements with respect to, among other things, theproposed Ridley Export Terminal (including being the first propane exportfacility on Canada's west coast, the construction of the terminal and buildingon time and on budget, alternatives and benefits for producers, access to newmarkets, diversification of products, sources of supply, expected supplyvolumes, relations with First Nations and Astomos, potential for third partyinvestment, facility specifications, processing capacity, handling capability,service area, cost, and timeline for construction and in-service, shippingtimeline, tolling arrangements, offtake arrangements, purchase and sale of LPGfrom the terminal, expansion of trade, and employment opportunities and othercommunity benefits), AltaGas' views with respect to the conditions imposed bythe federal regulators on granting its approval, the quality of Asian markets,Asian demand for clean energy, AltaGas' construction of new plants anddevelopment of new projects, business objectives, expected growth, results ofoperations, performance, business projects and opportunities and financialresults. These statements involve known and unknown risks, uncertainties andother factors that may cause actual results or events to differ materially fromthose anticipated in such forward-looking statements.
Such statements reflect AltaGas' current views with respect to future eventsbased on certain material factors and assumptions and are subject to certainrisks and uncertainties, including without limitation, changes in market,competition, governmental or regulatory developments, general economicconditions and other factors set out in AltaGas' public disclosure documents.Many factors could cause AltaGas' actual results, performance or achievementsto vary from those described in this news release, including without limitationthose listed above. These factors should not be construed as exhaustive. Shouldone or more of these risks or uncertainties materialize, or should assumptionsunderlying forward-looking statements prove incorrect, actual results may varymaterially from those described in this news release as intended, planned,anticipated, believed, sought, proposed, estimated or expected, and suchforward-looking statements included in, or incorporated by reference in thisnews release, should not be unduly relied upon. Such statements speak only asof the date of this news release. AltaGas does not intend, and does not assumeany obligation, to update these forward-looking statements. The forward-lookingstatements contained in this news release are expressly qualified by thiscautionary statement.
Manager, Smithers District Chamber of Commerce