ALTAGAS AND KEYERA ANNOUNCE AGREEMENTS THAT LEVERAGE EACH COMPANY'S INFRASTRUCTURE TO DRIVE COMPETITIVE INDUSTRY SOLUTIONS
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 ([email protected])
AltaGas: Jon Morrison, Senior Vice President, Corporate Development and Investor Relations ([email protected]) or Aaron Swanson, Vice President, Investor Relations ([email protected])
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.
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