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 of
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 production. 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 Corp.
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, 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: AltaGas' belief that
REEF will strengthen Canadian and Asia
Pacific energy connectivity, improve global energy security
and deliver positive outcomes for all stakeholders; the potential
development of REEF and expected project activities, deliverables
and timing thereof; expectation that AltaGas' development approach
will provide the most capital efficient build, match energy export
supply with throughput capacity, mitigate challenges and provide
longer-term local employment opportunities; anticipation of
successful collaboration with First Nations and other key
stakeholders; the expected impact of REEF's structural advantage
and outcomes therefrom, including significant increases in
producers' LPG prices and time savings of North American West Coast
LPG exports; the expectation that the US Gulf Coast and Arabian
Gulf will continue to be the balancing markets for Asian markets;
AltaGas' Midstream business focus, strategy and expected outcomes
therefrom; and the importance of AltaGas' role in the larger energy
ecosystem and global economy.
These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results,
events, and achievements to differ materially from those expressed
or implied by such statements. 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:
anticipated timing of asset sale closings, effective tax rates,
financing initiatives, degree day variance from normal, pension
discount rate, the performance of the businesses underlying each
sector, impacts of the hedging program, expected commodity supply,
demand and pricing, volumes and rates, exchange rates, inflation,
interest rates, credit ratings, regulatory approvals and policies,
future operating and capital costs, capacity expectations, weather,
frac spread, access to capital, planned and unplanned plant
outages, timing of in-service dates of new projects and acquisition
and divestiture activities, returns on investments, and dividend
levels.
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:
risks related to conflict in Eastern
Europe; health and safety risks; operating risks;
infrastructure; natural gas supply risks; volume throughput;
service interruptions; transportation of petroleum products; market
risk; inflation; general economic conditions; cyber security,
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; 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
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, including COVID-19; and the other factors discussed
under the heading "Risk Factors" in the Corporation's Annual
Information Form for the year ended December
31, 2022 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 MD&A and Consolidated Financial
Statements, AIF, and press releases are available through AltaGas'
website at www.altagas.ca or through SEDAR at
www.sedar.com
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 Keyera Corp.
