Canada’s AltaGas increases Petrogas stake to 100%
Canadian midstream operator AltaGas said July 6 it had acquired the remaining 25.97% equity interest in oil and natural gas liquids marketer Petrogas Energy from Japan’s Idemitsu Kosan for a total cash consideration of C$285mn (US$218.8mn).
The transaction will be funded largely from the proceeds of AltaGas’ recent sale of its non-operated interest in the Aitken Creek gas processing facility in BC.
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Effective with the July 5 close, AltaGas now holds a 100% interest in Petrogas, whose key asset is a liquified petroleum gas (LPG) export terminal in Ferndale, Washington. AltaGas already operates an LPG terminal at Ridley Island near Prince Rupert, BC which has the capacity to export up to 40,000 barrels/day (1.2mn metric tons/year) of propane to Asian markets.
AltaGas said Idemitsu will continue as an important offtake customer through their Astomos Energy Joint Venture. The two will also continue to evaluate future opportunities and collaborate on prospective energy transition projects as both organisations pursue various lower-carbon initiatives over the long-term.
“This transaction provides us the ability to further integrate and optimise our industry leading west coast export platform, solidifying our position as the leading provider of North American LPGs from the west coast,” AltaGas CEO Randy Crawford said. “We will continue to develop the Petrogas assets and leverage its port and tidewater access to meet our domestic and global customers’ needs, including various energy transition opportunities that are aligned with North America and Asia’s long-term lower-carbon focus.”