Painted Pony Energy has 20-year take-or-pay agreement with Townsend 2A
AltaGas Ltd. (Ticker: ALA) started commercial operations at its 99 Mmcf/day shallow-cut natural gas processing facility (Townsend 2A), adjacent to the currently operating Townsend Facility. Commissioning of Townsend 2A was completed on October 1, 2017, the company said in a press release. Volumes are expected to progressively ramp up through the fourth quarter of 2017 to the first quarter of 2018. The $125 million project was completed $5 million under budget, the company said.
AltaGas and Painted Pony Energy Ltd. (ticker: PONY) have entered into 20-year take-or-pay agreements in respect of Townsend 2A and the incremental field compression equipment, subject to the satisfaction of certain conditions contained in those agreements.
AltaGas’s Townsend 2-A facility is backstopped by takeaway agreements with Painted Pony Petroleum. Source: Painted Pony investor presentation
“By linking our significant midstream projects together – Townsend, North Pine and the Ridley Island Propane Export Terminal (RIPET) – we are executing on our vision of offering Canadian producers a complete energy value chain,” said David Harris, President and CEO of AltaGas.
AltaGas said it has permitting in place to increase by a further 99 Mmcf/day. The company pointed to contributions of local First Nations, including Halfway River First Nation and Blueberry River First Nation, “our dedicated employees and contractors,” helping the project come in under budget and on schedule.
Painted Pony Energy has 20-year take-or-pay agreement with Townsend 2A
North Pine 10,000 Bbls/day separation facility backstopped by all of Painted Pony’s NGLs Produced at Townsend and Blair Creek
AltaGas said the 10,000 Bbls/day North Pine NGL Separation Facility is tracking under budget and ahead schedule, with an online date now expected in early December 2017. This investment will be backstopped by long-term supply agreements with Painted Pony for a portion of the total capacity, and will include dedication of all of Painted Pony’s NGL produced at the Townsend and Blair Creek facilities. The remaining capacity is expected to be filled with NGL produced in the area, the company said.
Propane for Asian markets, Ridley Island on track for Q1 2019 in-service date
AltaGas Ridley Island propane export project — straight to Asia.
As construction progresses at RIPET, AltaGas is seeing increased interest from western Canadian producers and aggregators looking for new access to premium Asian markets for their propane. Construction is tracking on budget and RIPET is expected to be in service by the first quarter of 2019.
In Jan. 2017, AltaGas announced it would acquire WGL Holdings, in a C$8.4B transaction that will double the size of AltaGas with pro-forma assets of approximately C$22 billion.
