CALGARY,
AB, Feb. 7, 2025 /CNW/ - AltaGas Ltd.
("AltaGas") (TSX: ALA) and Keyera Corp. ("Keyera")
(TSX: KEY) are pleased to announce long-term commercial
agreements that leverage each company's infrastructure to provide
value-added services to customers and strengthen each company's
long-term growth outlook. These agreements include Keyera entering
into a long-term tolling agreement on AltaGas' global exports
platform, AltaGas contracting fractionation services at Keyera Fort
Saskatchewan ("KFS"), and AltaGas contracting access to Keyera's
rail, storage, and logistics infrastructure. These agreements
further de-risk both organizations' infrastructure investments and
ensure more of Canada's vital
energy products reach premium Asian markets.
Expanding Global Market Access with Long-Term Liquids Export
Agreements
Keyera has entered a 15-year tolling contract at AltaGas' Ridley
Island Energy Export Facility ("REEF") for 12,500 Bbls/d of
liquified petroleum gases ("LPG") export capacity. The contract
builds on the existing volumes that Keyera currently flows through
AltaGas' Ridley Island Propane Export Terminal ("RIPET"). The new
agreement will provide Keyera the ability to offer its customers
more diversified market access for LPGs, including premium Asian
markets, while providing AltaGas with long-term ratable export
volumes and cash flows.
Inclusive of previously announced contracts, AltaGas has now
reached its base long-term tolling target for the REEF project.
Construction on REEF continues to progress in line with the
delivery schedule and is targeted to come online near 2026
year-end. With only ten shipping days to the fastest growing LPG
demand markets in Northeast Asia,
REEF will efficiently deliver Canada's vital energy products to the world,
while allowing Canadian LPGs to realize the strongest market
price.
Long-Term Agreement for Fractionation Services
AltaGas has entered an 18-year agreement for 8,000 Bbls/d
fractionation capacity at KFS, which includes the natural gas
liquids ("NGLs") that will be produced from AltaGas' Pipestone II
plant currently under construction. These volume commitments will
provide AltaGas long-term fractionation capacity for its
Alberta Montney volumes. For Keyera,
this provides long-term visibility for volumes to support further
growth investments, including the proposed KFS Fractionation Unit
III expansion project and the potential to expand additional rail
and logistics offerings. AltaGas will have take-in-kind rights for
LPG volumes from KFS and has entered into a services agreement
providing the company access to Keyera's extensive rail, storage,
and logistics network in Alberta's Industrial Heartland, which
efficiently connects LPG volumes into AltaGas' global exports'
network.
"We are pleased to partner with Keyera and execute long-term
agreements that will improve the value of both companies'
infrastructure and ensure we're collectively delivering the best
outcomes for the Canadian energy industry" said Vern Yu, President and CEO of AltaGas. "These
agreements strengthen the long-term growth and predictability of
cash flows for both companies and strengthens Canada's link into key Asian markets."
"This collaboration with AltaGas strengthens our integrated
value chain and creates more diversified sales opportunities for
our customers, enabling them to consistently reach the highest
value markets" said Dean Setoguchi,
President and CEO of Keyera. "Together, we are working to make the
energy industry in Canada more
competitive".
About Keyera
Keyera operates an integrated Canadian-based energy
infrastructure business with extensive interconnected assets and
depth of expertise in delivering energy solutions. Its
predominantly fee-for-service based business consists of natural
gas gathering and processing; natural gas liquids processing,
transportation, storage, and marketing; iso-octane production and
sales; and an industry-leading condensate system in the
Edmonton/Fort Saskatchewan area of Alberta. Keyera
strives to provide high quality, value-added services to its
customers across North America and
is committed to conducting its business ethically, safely and in an
environmentally and financially responsible manner.
About AltaGas
AltaGas is a leading North American infrastructure company that
connects customers and markets to affordable and reliable sources
of energy. The Company operates a diversified energy infrastructure
business that is focused on delivering resilient and durable value
for its stakeholders. From wellhead to tidewater, AltaGas'
Midstream business is focused on providing its customers with safe
and reliable service and connectivity that facilitates the best
outcomes for their businesses. This includes global market access
for North American LPGs, which provides North American producers
and aggregators with the best netbacks for LPGs while delivering
diversity of supply and stronger energy security to its downstream
customers in Asia.
For more information please contact:
Keyera: Dan
Cuthbertson, General Manager, Investor
Relations (dan_cuthbertson@keyera.com)
AltaGas: Jon
Morrison, Senior Vice President, Corporate Development
and Investor Relations (Jon.Morrison@altagas.ca) or
Aaron Swanson, Vice
President, Investor Relations (Aaron.Swanson@altagas.ca)
FORWARD-LOOKING INFORMATION
AltaGas:
This news release contains forward-looking information
(forward-looking statements). Words such as "may", "can", "would",
"could", "should", "will", "intend", "plan", "anticipate",
"believe", "aim", "seek", "propose", "contemplate", "estimate",
"focus", "strive", "forecast", "expect", "project", "target",
"potential", "objective", "continue", "outlook", "vision",
"opportunity" and similar expressions suggesting future events or
future performance, as they relate to the Corporation or any
affiliate of the Corporation, are intended to identify
forward-looking statements. In particular, this news release
contains forward-looking statements with respect to, among other
things, the anticipated benefits of the long-term commercial
agreements including providing value added service to customers,
strengthening each company's long-term growth outlooks, de-risking
both companies' infrastructure investments and access to Asian
markets; the anticipated benefits of the tolling agreement and the
agreement for fractionation capacity at KFS for each of Keyera and
AltaGas; construction progress and the anticipated in-service date
of REEF; and the anticipated benefits of REEF.
These forward-looking 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 forward-looking 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, the
failure to realize the anticipated benefits of the long-term
commercial agreements; changes in market, 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 except as required by law. The forward-looking
statements contained in this news release are expressly qualified
by these cautionary statements.
Additional information relating to AltaGas, including its
quarterly and annual Management's Discussion and Analysis and
Consolidated Financial Statements, AIF, and press releases are
available through AltaGas' website at www.altagas.ca or through
SEDAR+ at www.sedarplus.ca.
Keyera:
To provide readers with information regarding Keyera,
including its assessment of future plans, operations and financial
performance, certain statements contained herein relating to Keyera
contain forward-looking information within the meaning of
applicable Canadian securities legislation (collectively,
"forward-looking information"). Forward-looking information relates
to future events and/or Keyera's future performance.
Forward-looking information represents predictions only; actual
events or results may differ materially. Use of words such as
"anticipate", "continue", "estimate", "expect", "may", "will",
"project", "should", "plan", "intend", "believe" and similar
expressions (including negatives thereof) are intended to identify
forward-looking information.
All statements other than statements of historical fact
contained herein are forward-looking information, including,
without limitation, statements regarding Keyera's growth outlook
and prospects; benefits to Keyera and its customers relating to the
REEF tolling agreement including the ability to access premium
Asian markets; impacts and benefits of the KFS fractionation
contract on Keyera, the proposed KFS Fractionation Unit III
expansion project and potential expansion of rail and logistics
offerings; and potential additional volumes from AltaGas on the
KAPS pipeline and at KFS.
Forward-looking information reflect management's current
beliefs and assumptions with respect to such things as outlook for
general economic trends, industry forecasts and/or trends,
commodity prices, capital markets, and the government, regulatory
and/or legal, environment and potential impacts thereof. In some
instances, forward-looking information may be attributed to third
party sources. Management believes its assumptions and analysis are
reasonable and that expectations reflected in forward-looking
information contained herein are also reasonable. However, Keyera
cannot assure readers these expectations will prove to be correct,
and differences could be material.
All forward-looking information involves known and unknown
risks, uncertainties and other factors that may cause actual
results, events, levels of activity and achievements to differ
materially from those anticipated in the forward-looking
information. The principal risks, uncertainties and other factors
affecting Keyera and its business are contained in Keyera's 2023
Year-End Report dated February 14,
2024 and in Keyera's Annual Information Form dated
February 29, 2024, which are
available on SEDAR+ at www.sedarplus.ca and on the Keyera website
at www.keyera.com.
All forward-looking information contained herein is expressly
qualified by this cautionary statement. Readers are cautioned they
should not unduly rely on this forward-looking information and that
information contained in such forward-looking information may not
be appropriate for other purposes. Further, readers are cautioned
that the forward-looking information contained herein is made as of
the date hereof. Unless required by law, Keyera does not intend and
does not assume any obligation to update any forward-looking
information.
SOURCE AltaGas Ltd.
