AltaGas' Townsend Gas Facility—the company has announced the go ahead of the North Pine Liquids Separation Facility — Photo: AltaGas
AltaGas is developing a liquids separation and handling facility (the North Pine Facility) located approximately 40 km northwest of Fort St. John, British Columbia. The North Pine Facility will be connected to existing AltaGas infrastructure in the region, including the proposed Ridley Island Propane Export Terminal, and will serve producers in the Montney region. The North Pine Facility is being designed with capacity to process up to 20,000 bbls/d of C3+ and handle up to 20,000 bbls/d of C5+. Engagement with First Nations and key stakeholders continues, and on April 14, 2016 AltaGas filed its application with the B.C. Oil and Gas Commission (OGC) for permitting of North Pine. Approval is expected in the third quarter of 2016. A front-end engineering and design (FEED) study was completed in March, with assessment of further capital optimization opportunities to be completed in the third quarter of 2016. In conjunction with the North Pine Facility, AltaGas is developing two liquids supply lines connecting the North Pine Facility to the Alaska Highway truck terminal. Completion of the FEED study and application with the OGC is expected in the third quarter of 2016. The North Pine Facility and the two liquids supply lines are expected to cost approximately $190 to $210 million. AltaGas expects to receive permits and reach a Final Investment Decision (FID) in 2016 with commercial operations commencing in the first half of 2018.
"Receiving regulatory approval for our North Pine Facility is a major milestone for our northeast B.C. strategy and the overall energy value chain we can offer producers," said David Harris, President and CEO of AltaGas. "With the North Pine Facility under development we can offer producers in the Montney a new alternative for their products including the ability to reach new markets such as Asia through our proposed Ridley Island Propane Export Terminal. We will continue to engage with key stakeholders and First Nations as we bring our northeast B.C. strategy to fruition."
The North Pine Facility will have the capacity to process up to 20,000 bbls/d of C3+ and handle up to 20,000 bbls/d of C5+. In conjunction with the North Pine Facility, AltaGas continues to develop two liquids supply lines connecting the Alaska Highway truck terminal to the North Pine Facility. AltaGas submitted an application to the BCOGC at the end of August for permitting of the liquids supply lines and expects to receive regulatory approval in the fourth quarter of 2016. The North Pine Facility and the two liquids supply lines are expected to cost approximately $190 to $210 million. AltaGas expects to reach a Final Investment Decision on the North Pine Facility in the fourth quarter of 2016.
- Record second quarter normalized EBITDA of $153 million, a 43 percent increase over the second quarter of 2015;
- 68 percent increase in normalized funds from operations to $114 million;
- Increased common share dividend by $0.01 per share per month to $2.10 per share annualized beginning with the September 15, 2015 payment, a 6.1 percent increase;
- Signed Memorandum of Understanding (MOU) with Astomos Energy Corporation (Astomos) for 50 percent of the 1.2 million tonnes of Liquefied Petroleum Gas (LPG) available to be shipped from the proposed Ridley Island Propane Export Terminal;
- Completed the 198 Mmcf/d shallow-cut Townsend Facility ahead of schedule and under budget;
- Completed restructuring of non-utility workforce which is expected to reduce operating and administrative expenses by approximately $7 million on a full year basis; and
- Invested $150 million into Petrogas Energy Corp. (Petrogas) preferred shares.
AltaGas signed a sublease and related agreements with Ridley Terminals Inc. to develop, build, own and operate the proposed Ridley Island Propane Export Terminal located near Prince Rupert, British Columbia on lands leased from Ridley Terminals Inc. and the Prince Rupert Port Authority. The proposed Ridley Island Propane Export Terminal is estimated to cost approximately $400 to $500 million and is to be designed to ship up to 1.2 million tonnes of propane per annum. It will be built on a brownfield site with a history of industrial development, connections to existing rail lines and an existing marine jetty with deep water access to the Pacific Ocean. Propane from British Columbia and Alberta natural gas producers will be transported to the facility using the existing CN rail network.
AltaGas has begun the formal environmental review process. AltaGas also continues to engage closely with First Nations. On February 11, 2016, AltaGas filed an application with the National Energy Board (NEB) for a 25-year propane export licence. Preliminary engineering and the FEED study have been completed and further capital optimization opportunities are currently being addressed. AltaGas expects to reach FID in the fourth quarter of 2016, subject to First Nations engagement and necessary approvals.
AltaGas is in the early stages of development of a liquids separation facility which will serve producers in the Deep Basin region of northwest Alberta. A pre-FEED study was completed in May 2016. The facility is being designed with capacity to process up to 10,000 Bbls/d of C3+ and handle up to 10,000 Bbls/d of C5+. The Deep Basin facility will have access to existing rail and can be connected to AltaGas' proposed Ridley Island Propane Export Terminal. Active discussions with producers to contractually underpin the base capacity are continuing, and engagement with First Nations and key stakeholders is underway. Facility and rail applications have been submitted to the Alberta Energy Regulator in May 2016. AltaGas will target to reach FID in 2016, subject to completing commercial arrangements, stakeholder engagement, and regulatory approvals. The liquids separation facility is expected to cost approximately $60 to $80 million.
