AltaGas Signs LPG MoU with Japan's Astomos Energy Corporation

AltaGas Ltd. has signed a memorandum of understanding (MoU) with Japan’s Astomos Energy Corporation regarding sale and purchase of of LPG.

Under the terms of the multi-year Agreement, Astomos will purchase at least 50 percent of the 1.2 million tonnes of propane available to be shipped from the proposed Ridley Island propane export terminal located near Prince Rupert, British Columbia, Canada.

Astomos Energy Corporation was established as joint venture between Idemitsu Kosan Ltd. and Mitsubishi Corporation in 2006. It is one of the largest LPG players in the world, handling is excess of 10 million metric tons of LPG annually.

AltaGas has begun the formal environmental review process for the export terminal. Preliminary engineering has been completed and the front-end engineering and design study is being completed for the second quarter of 2016. AltaGas expects to reach a financial investment decision in 2016 for the approximately $400 - $500 million terminal and commence commercial operations in 2018, subject to continuing First Nations and stakeholder engagement and receipt of necessary approvals.