CALGARY,
AB, Dec. 23, 2024 /CNW/ - AltaGas Ltd.
("AltaGas" or the "Company") (TSX: ALA) is pleased to
provide a year-end update on global exports tolling and commercial
contracting activities. One of the Company's strategic priorities
is to advance commercial de-risking of our Midstream business with
increased global exports tolling and additional long-term
commercial contracting across the value chain. AltaGas has made
significant progress on this strategic priority in 2024 and exits
the year on a very strong footing.
In December, the Company executed several commercial contracts
that will provide long-term liquified petroleum gas ("LPG") supply
and tolling contracts for its global exports' platform. This
includes contracts with existing customers and the addition of new
customers. Some of these contracts will take effect in 2027 with
LPG volumes that will be added to Canadian supply while others will
take near-term effect with export volumes initially flowing through
the Ridely Island Propane Export Terminal ("RIPET") and moving to
the Ridely Island Energy Export Facility ("REEF") once the facility
comes online.
AltaGas continues to advance additional long-term tolling
arrangements and believes it will be positioned achieve its
long-term REEF contracting targets in early 2025. As previously
disclosed, AltaGas is in commercial discussions for the more than
100 percent of REEF phase I capacity. Once AltaGas has achieved its
long-term tolling target, the Company will strategically evaluate
adding additional tolling contracts while maintaining reserve
capacity to deliver on shorter-term contracting opportunities that
provide open market access for our diverse customer base and
deliver on AltaGas' merchant export operations.
AltaGas' West Coast Export Advantage is Robust
The long-term advantage of AltaGas' west coast export
capabilities remains robust. The current RIPET advantage for
Canadian producers to export to Asia is approximately US$8/Bbl higher than selling domestically or to
major U.S. LPG markets. The importance of the Canadian energy
industry to diversify end market exposure for LPGs continues to
grow as the U.S. oversupply compounds and reaffirms the benefit of
its customers linking more Canadian barrels to premium Asian demand
markets.
Construction activity at REEF continues to progress. Piling
activities continued through December with temporary and permanent
piles being added while uplands work is advancing as per schedule.
Storage tank fabrication is progressing offshore with steel cutting
more than 75 percent complete while rail construction is ongoing,
and REEF will provide AltaGas and its customers material long-term
logistical advantages.
Global Exports Contracts Build on Recent Contracts Across
Midstream Value Chain
Recent global exports contracting awards build on the strong
commercial success that AltaGas has delivered across other parts of
the Midstream value chain in 2024. This includes two long-term
agreements with a large investment grade international energy
company in Northeastern B.C. for 100 Mmcf/d of gas processing
capacity at the Townsend facility,
along with associated liquids handling and fractionation services,
and the extension of contract term with a large Canadian investment
grade producer at the Pipestone I gas processing facility in the
Alberta Montney for an additional five years. The latter of which
includes gas processing, liquids handling and marketing
services.
AltaGas looks forward to continuing to execute additional
commercial contracts in the new year and continuing to connect
customers and markets to affordable and reliable sources of energy
while building a diversified, lower-risk, high-growth energy
infrastructure business that compounds long-term value for its
stakeholders.
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, lower-risk,
high-growth energy infrastructure business that is focused on
delivering stable and growing value for its stakeholders.
For more information visit www.altagas.ca or reach out to one of
the following:
Jon Morrison
Senior
Vice President, Corporate Development and Investor Relations
Jon.Morrison@altagas.ca
Aaron Swanson
Vice
President, Investor Relations
Aaron.Swanson@altagas.ca
Investor Inquiries
1-877-691-7199
Media Inquiries
1-403-206-2841
media.relations@altagas.ca
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: anticipated benefits of AltaGas'
commercial contracts for LPG supply and tolling volumes through its
global exports' platform; anticipated effective date of these
contracts and the facilities such contracts will flow through; the
status of AltaGas' continuing negotiations for long-term
arrangements; AltaGas' ability to meet its long-term REEF
contracting targets and the timing thereof; AltaGas' strategy for
evaluating additional tolling contracts and the anticipated
benefits therefrom; AltaGas' west coast exports advantage; the
importance of the Canadian energy industry in diversifying end
market exposure for LPGs; the anticipated benefits of linking
Canadian barrels to Asian market demands; progress on construction
activity at REEF including, among other things, storage tank
fabrication and rail construction and the anticipated benefits
therefrom; and AltaGas intention to execute on additional
commercial contracts in 2025, continuing to connect customers and
markets to affordable and reliable energy sources and building a
diversified, lower risk, high-growth energy infrastructure business
compounding long-term value for its
stakeholders.
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 rate; anticipated timing of
asset sale and acquisition closings; the U.S/Canadian dollar
exchange rate; 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;
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
Corporation's Annual Information Form (AIF) for the year ended
December 31, 2023 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 press 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.
Financial outlook information contained in this news release
about prospective financial performance, financial position, or
cash flows is based on assumptions about future events, including
economic conditions and proposed courses of action, based on
AltaGas management's (Management) assessment of the relevant
information currently available. Readers are cautioned that such
financial outlook information contained in this news release should
not be used for purposes other than for which it is disclosed
herein.
Additional information relating to AltaGas, including its
quarterly and annual Management's Discussion and Analysis
(MD&A) and Consolidated Financial Statements, AIF, and press
releases are available through AltaGas' website at www.altagas.ca
or through SEDAR+ at www.sedarplus.ca.
SOURCE AltaGas Ltd.