AltaGas says Astomos to buy at least half propane exports from B.C. terminal

CALGARY – A Calgary-based company has lined up a buyer for half of the propane it hopes to export from a deep-water terminal northwest of Vancouver.

AltaGas Ltd. (TSX:ALA) says it’s reached a preliminary agreement on key terms with Astomos Energy Corp., which would buy at least 50 per cent of the 1.2 million tonnes of propane to be shipped from the Ridley Island Propane Export Terminal.

AltaGas announced the $400-million to $500-million propane export project in January and has begun the formal environmental review process.

The company plans to reach a final investment decision this year and begin commercial operations in 2018, subject to approvals.

AltaGas plans to use a site south of Prince Rupert, B.C., leased from Ridley Terminals Inc., and connected to Canadian National’s existing rail network.