CALGARY, ALBERTA--(Marketwired - Jan. 20, 2016) - AltaGas Ltd. ("AltaGas") (TSX:ALA) announced today that a sublease and related agreements have been signed with Ridley Terminals Inc. ("Ridley Terminals") to develop, build, own and operate the proposed Ridley Island Propane Export Terminal (the "Facility"), to be located on Ridley Island near Prince Rupert, British Columbia on a portion of lands leased by Ridley Terminals from the Prince Rupert Port Authority (the "Port"). The agreements are an important first step for beginning the regulatory and engagement phases of the project.
The proposed Facility will be designed to ship up to 1.2 million tonnes of propane per year and will be constructed by AltaGas. It will be built on a brownfield site with a history of industrial development, connections to existing rail lines and an existing world class marine jetty with deep water access to the Pacific Ocean. Propane from British Columbia and Alberta natural gas producers will be transported to the Facility using the existing CN rail network.
"We are very excited about the opportunities presented by the Ridley Island Propane Export Terminal," said David Cornhill, Chairman and CEO of AltaGas. "We anticipate this Facility will be the first to export propane from British Columbia's west coast, opening up new international markets for natural gas producers in Western Canada. We look forward to working closely with First Nations, governments, the community and other stakeholders to bring this project into operation."
"Ridley Terminals is encouraged by this concrete step to diversify products shipped from our facilities while sustaining and creating new jobs in the community," said David Kirsop, Chief Operating Officer and President of Ridley Terminals.
"This project aligns with the type of growth and diversification envisioned in the Port's development plan, with the potential to advance Prince Rupert's support of Canadian export industries through our trade gateway," said Don Krusel, President and CEO of the Port of Prince Rupert.
Preliminary engineering has been completed and the front end engineering and design study has begun. The process of engaging and consulting with First Nations, communities, government, and environmental and regulatory authorities is underway. AltaGas is working towards reaching a final investment decision in 2016. Commercial operation to commence propane exports is targeted for 2018, subject to First Nations consultations and necessary approvals. The Facility is estimated to cost between $400 - $500 million.
AltaGas owns or has an interest in six large natural gas processing facilities in British Columbia and Alberta that safely produce propane, and operates a similar propane export facility in Ferndale, Washington. AltaGas has a long-standing history of building trust and treating stakeholders with respect in the communities where it develops and operates projects.
AltaGas is an energy infrastructure business 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
This news release contains forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "target', "believe", "seek", "propose", "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 release contains forward-looking statements with respect to, among other things, expectations with respect to the propane export terminal including, construction by AltaGas, site location, shipment, connection and transportation capabilities, sources of supply, estimated cost, anticipated timing of final investment decision and commercial operation, expectations of the propane export terminal being the first to export propane from British Columbia's west coast, and the potential for the propane export terminal to provide new markets for natural gas producers, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect AltaGas' current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in AltaGas' public disclosure documents. Many factors could cause AltaGas' actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release as intended, planned, anticipated, believed, sought, proposed, estimated or expected, and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. AltaGas does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.