Pembina Pipeline signs LPG export deal with AltaGas

Executive Summary

• Pembina Pipeline Corp. has entered into a long-term tolling agreement with AltaGas Ltd. to secure export capacity for liquified petroleum gases (LPGs) at AltaGas's Ridley Island facilities.
• The agreement provides Pembina with 30,000 barrels per day of total export capacity, split into two tranches: 20,000 barrels per day starting in April 2026 and an additional 10,000 barrels per day starting in April 2027.
• This deal enhances Pembina's global market access, bringing its total West Coast export capacity to 50,000 barrels per day when combined with its existing Prince Rupert terminal capacity, facilitating access to premium price markets in Asia.

Key Details

• Counterparty: AltaGas Ltd.
• Agreement Type: Long-term tolling agreement for LPG export capacity.
• Facilities Involved: AltaGas's current Ridley Island propane export terminal (RIPET) and future Ridley Island energy export facility (REEF).
• Capacity Tranche 1: 20,000 barrels per day of export capacity, commencing in April 2026.
• Capacity Tranche 2: Additional 10,000 barrels per day of export capacity, commencing in April 2027.
• Total New Capacity: 30,000 barrels per day.
• Strategic Impact: Combined with 20,000 barrels per day of capacity at Pembina's Prince Rupert terminal, Pembina will have 50,000 barrels per day of global market access off Canada's West Coast.
• Market Access: Enables access to premium price markets in Asia for its own and its customers' propane.
• Relationship Context: Builds upon Pembina's existing relationship as one of AltaGas's largest customers.

Notable Quotes

• "Long-term growth of natural gas and natural gas liquids increases the importance of connecting these energy products to premium markets -- reliably and competitively. This agreement builds upon Pembina's existing and valued relationship as one of AltaGas's largest customers."