AltaGas, Idemitsu Plan LNG, LPG Exports from Canada to Asia

AltaGas Ltd. and Idemitsu Kosan have signed an agreement to form the AltaGas Idemitsu Joint Venture Limited Partnership to pursue opportunities involving exports of liquefied petroleum gas (LPG) and liquefied natural gas (LNG) from Canada to Asia. Both parties will each own a 50 percent interest in the venture.

The joint venture plans to pursue opportunities to develop long-term natural gas supply and sales arrangements to meet the growing demand for natural gas in Asia, both companies said in a statement. As Asia's largest LNG consumer, Japan would benefit from a new and dependable source of LNG, the statement added.

There are also plans to undertake feasibility studies for the development and construction of liquefaction facilities as part of the proposed project to export LNG to markets in Asia. The feasibility study is expected to be completed by early 2014. The pipeline capacity required to transport natural gas to the liquefaction facility is expected to be provided by AltaGas' wholly owned subsidiary Pacific Northern Gas Ltd. The proposed LNG exports could begin as early as 2017.

The Partnership also plans to pursue opportunities to develop a LPG export business, including logistics, plant refrigeration and storage facilities. The feasibility study is expected to be completed in 2013. Idemitsu is a shareholder of Astomos Energy Corporation, one of the world's largest LPG suppliers. The proposed LPG export business could begin as early as 2016.