ALTAGAS ANNOUNCES LONG-TERM GLOBAL EXPORTS TOLLING AGREEMENT
CALGARY, AB, June 9, 2025 /CNW/ - AltaGas Ltd. ("AltaGas" or the "Company") (TSX: ALA) is pleased to announce an incremental long-term tolling agreement that advances the Company's commercial de-risking and continues to reduce long-term commodity exposure across the enterprise. Keyera Corp. ("Keyera") will flow an additional 12,500 Bbls/d of liquified petroleum gases ("LPGs") through AltaGas' west coast export facilities. The incremental tolling volumes will commence in 2028, post the Keyera Fort Saskatchewan III expansion project going into service.
This agreement expands on the 12,500 Bbls/d of long-term export capacity that Keyera previously contracted for and was announced in February of this year. In aggregate, Keyera will now have 25,000 Bbls/d of LPG export capacity from AltaGas' west coast facilities under 15-year tolling agreements with a growing portion of Keyera's LPGs being directed to premium downstream markets in Asia.
Demand for Global Markets Access Remains Robust
The importance of market diversification and the strategic advantage of AltaGas' global exports platform is being reinforced in the current market with U.S. and global tariffs creating increased market uncertainty. AltaGas provides its customers the opportunity for protection against tariff and counter-tariff impacts and ensures access to the highest priced global markets. As Canadian upstream production continues to grow, we believe it is critical to connect more of Canada's vital energy products to premium global markets for the benefit of all Canadians. AltaGas is positioned to benefit from the long-term fundamentals of growing Canadian natural gas and natural gas liquids ("NGL") production, strong Asian demand and the Company's structural shipping advantage from the west coast. AltaGas has exceeded its long-term tolling target across its global exports portfolio and will continue to evaluate additional long-term contracts.
Construction progress on the Ridley Island Energy Export Facility ("REEF") continues to progress. Uplands work is advancing with overburden removal finished and rock blasting nearing completion. Offsite fabrication is progressing according to the execution plan. Fabrication is taking place in Asia with the LPG storage vessels and bullets over 70 percent complete. Compression and refrigeration fabrication is also progressing offsite in controlled manufacturing environments, in Canada, on a modular basis. Progress on the jetty continues to accelerate and is recovering from weather-related delays experienced during the winter. Over 60 percent of total project costs are now incurred or committed, further de-risking construction execution.
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 visit www.altagas.ca or reach out to one of the following:
Aaron Swanson
Vice President, Investor Relations
[email protected]
Investor Inquiries
1-877-691-7199
Media Inquiries
1-403-206-2841
[email protected]
FORWARD-LOOKING INFORMATION
This news release contains forward-looking information (forward-looking statements). Words such as "guidance", "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 Company or any affiliate of the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. Specifically, such forward-looking statements included in this document include, but are not limited to, statements with respect to the following: the incremental volume of LPGs Keyera will flow through AltaGas' west coast facilities and the anticipated timing thereof; the total volume of LPG export capacity Keyera will have from AltaGas' west coast facilities; the importance of market diversification; the strategic advantage of AltaGas' global exports platform; AltaGas' ability to provide customers with protection against tariffs and counter-tariff impacts; the belief in the importance of connecting Canada's energy products to global markets and the anticipated benefits therefrom; the expectation that AltaGas will benefit from the long-term fundamentals of growing Canadian NGL production, Asian demand and AltaGas' structural shipping advantage; AltaGas' commitment to evaluating additional long-term contracts; progress on construction activity at REEF including, among other things, uplands work and rock blasting, offsite fabrication of LPG storage vessels and bullets, compression and refrigeration fabrication, and progress on the jetty; and continued de-risking of construction execution at REEF.
Such statements reflect AltaGas' current expectations, estimates, and projections based on certain material factors and assumptions at the time the statement was made. Material assumptions include: effective tax rates; U.S./Canadian dollar exchange rates; inflation; interest rates, credit ratings, regulatory approvals and policies; expected commodity supply, demand and pricing; volumes and rates; propane price differentials; degree day variance from normal; pension discount rate; financing initiatives; the performance of the businesses underlying each sector; impacts of the hedging program; weather; frac spread; access to capital; future operating and capital costs; timing and receipt of regulatory approvals; seasonality; planned and unplanned plant outages; timing of in-service dates of new projects and acquisition and divestiture activities; taxes; operational expenses; returns on investments; dividend levels; and transaction costs.
AltaGas' forward-looking statements are subject to certain risks and uncertainties which could cause results or events to differ from current expectations, including, without limitation: health and safety risks; operating risks; infrastructure natural gas supply risk; volume throughput; service interruptions; transportation of petroleum products; market risk; inflation; general economic conditions; cybersecurity, information, and control systems; climate-related risks; environmental regulation risks; regulatory risks; litigation; changes in law; Indigenous and treaty rights; dependence on certain partners; political uncertainty and civil unrest; risks related to conflict, including the conflicts in Eastern Europe and the Middle East; decommissioning, abandonment and reclamation costs; reputation risk; weather data; capital market and liquidity risks; interest rates; internal credit risk; foreign exchange risk; debt financing, refinancing, and debt service risk; counterparty and supplier risk; technical systems and processes incidents; growth strategy risk; construction and development; underinsured and uninsured losses; impact of competition in AltaGas' businesses; counterparty credit risk; composition risk; collateral; rep agreements; market value of the common shares and other securities; variability of dividends; potential sales of additional shares; labor relations; key personnel; risk management costs and limitations; commitments associated with regulatory approvals for the acquisition of WGL; cost of providing retirement plan benefits; failure of service providers; risks related to pandemics, epidemics or disease outbreaks and the other factors discussed under the heading "Risk Factors" in the Company's Annual Information Form (AIF) for the year ended December 31, 2024 and set out in AltaGas' other continuous disclosure documents.
Many factors could cause AltaGas' or any particular business segment's actual results, performance or achievements to vary from those described in this news release, including, without limitation, those listed above and the assumptions upon which they are based proving incorrect. 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, forecasted, expected, projected or targeted and such forward-looking statements included in this news release, should not be unduly relied upon. The impact of any one assumption, risk, uncertainty, or other factor on a particular forward-looking statement cannot be determined with certainty because they are interdependent and AltaGas' future decisions and actions will depend on management's assessment of all information at the relevant time. 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.
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