CALGARY, ALBERTA–(Marketwired – Jan. 23, 2017) – AltaGas Ltd. (“AltaGas”) (TSX:ALA) announced today that it entered into a non-binding Letter of Intent (“LOI”) on January 20, 2017 with a significant Montney producer to construct a 120 Mmcf/d deep-cut natural gas processing facility and a natural gas liquids (“NGL”) separation train, capable of processing up to 10,000 Bbls/d of NGL mix, and rail terminal (the “Facilities”). The Facilities, which are to be located in another area of the Montney separate from AltaGas’ current operations, are expected to have access to the CN rail network allowing for the transportation of propane to the Ridley Island Propane Export Terminal which AltaGas declared a positive Final Investment Decision on earlier this year. Under the terms of the LOI, it is contemplated that the deep-cut processing facility will be jointly owned, while the NGL separation train and rail terminal will be fully owned by AltaGas. The deep-cut processing facility is expected to cost approximately $100 – $110 million while the NGL separation train and rail terminal are expected to cost approximately $60 – $70 million. It is expected that the Facilities will be underpinned with long-term take-or-pay and dedication commercial agreements. Completion of the project is subject to, among other things, negotiation and execution of definitive agreements, which AltaGas targets to have signed within the first quarter of 2017. Subject to regulatory approvals, the Facilities are expected to be on-line in early 2019.
“We look forward to working closely with a new customer and are excited to bring significant new development to yet another area of the Montney,” said David Harris, President and CEO of AltaGas. “This development broadens our customer base and drives continued growth for our midstream business, including our energy export strategy.”
AltaGas is an energy infrastructure company with a focus on natural gas, power and regulated utilities. AltaGas creates value by acquiring, growing and optimizing its energy infrastructure, including a focus on clean energy sources. For more information visit: www.altagas.ca