Canada's AltaGas and Keyera agree long-term LPG processing deals
Keyera entered a 15-year tolling contract at AltaGas' Ridley Island Energy Export Facility for 12,500 barrels per day (bpd) of LPG export capacity.
In turn, AltaGas signed an 18-year agreement for 8,000 bpd of fractionation capacity at Keyera's natural gas liquids (NGLs) processing and storage facility in Saskatchewan.
U.S. President Donald Trump imposed and later suspended tariffs on Canadian goods, including a 10% levy on energy imports.
As a result, Canadian companies are looking to reduce dependence on the U.S. by looking towards other markets such as those in Asia.
AltaGas' Ridley export facility is expected to be operational by the end of 2026, with the company saying that it requires only ten shipping days to export to the LPG markets in Northeast Asia.
The 18-year fractionation contract, which includes processing of NGLs to be produced at AltaGas' Pipestone II plant in Alberta, will provide long-term capacity for AltaGas' production in Montney shale.
"These agreements strengthen the long-term growth and predictability of cash flows for both companies and strengthens Canada's link into key Asian markets," said Vern Yu, President and CEO of AltaGas.
Tolling is a service contract where one company agrees to pay a fee or toll to another to process raw materials into finished product.
Fractionation is used to seperate raw natural gas into individual substances such as methane, ethane, propane, butane and natural gasoline.
"We see the announcement as slightly positive for both companies' share prices, with the arrangements allowing each party to lever off the other's infrastructure, and underpin their respective growth projects with long-term contracts for the projects' capacities," RBC Capital Markets analyst Maurice Choy said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Telegraph
27 minutes ago
- Telegraph
Gen Z support for Trump collapses amid Epstein fallout
Young people have lost faith in Donald Trump, polling shows. The US president's approval rating among 18 to 29-year-olds fell from roughly even around the time of his inauguration in January to minus 40 by July, according to analysis of YouGov data by the pollster G Elliott Morris. Gen Z voters swung towards Mr Trump in last year's election, even though support for Republican candidates tends to lag among younger voters, but this has collapsed in the months since. Mr Trump is facing the biggest crisis of his second term over his handling of the Epstein files, with his administration refusing to make public all of its documents relating to Jeffrey Epstein, the paedophile financier, who died in 2019. By the US president's own account, he was friends with Epstein for about 15 years before they fell out in the early 2000s. The drop in support could be a hopeful sign for the Democrats, many of whom were panicked by Mr Trump's support among younger voters when he won last year's presidential election, almost equalling his opponent Kamala Harris for support among 18 to 29-year-olds. However, data appear to show that a drop in approval for Mr Trump is not necessarily translating to support for the Left-wing party, Axios reported. A separate poll for CBS News and YouGov published on Sunday showed 8 per cent of Democrats, 17 per cent of independents and 50 per cent of Republicans approved of Mr Trump's handling of the Epstein case. It also revealed widespread scepticism of his handling of the economy, with 36 per cent approving of his handling of inflation compared with almost two thirds against. Almost half believed Mr Trump's ' one big, beautiful bill ', which passed Congress last month, would hurt their family, compared with 25 per cent who believed it would help. The legislation extends tax cuts from the president's first term in 2017, but also cuts funding for Medicaid, which covers medical costs for low-income Americans, by trillions of dollars, despite Mr Trump's election pledge not to do so. However, the Democrats are hugely unpopular, failing to regroup following a series of shattering defeats in November's elections. Just 28 per cent had a favourable opinion of the party, according to a CNN poll conducted between July 10 and July 13, compared with 54 per cent who were unfavourable. This marks a small dip from shortly before Mr Trump's inauguration in January this year, when 33 per cent had a favourable opinion compared with 48 per cent who were unfavourable.
Reuters
27 minutes ago
- Reuters
TD Bank calls staff back to office four days a week starting this fall, memo says
July 23 (Reuters) - TD Bank ( opens new tab has asked employees to work from office four days a week starting this fall, according to a memo seen by Reuters on Wednesday. Executive-level staff at the bank will be required to work from the office at least four days a week starting October 6, while non-executive employees are expected to follow suit by November 3, said the memo from TD Bank Group's Chief Human Resources Officer Melanie Burns. "Many locations will be ready to accommodate this change by November 3," Burns said in the memo. After several years of supporting flexible work models following the COVID-19 pandemic, many companies are now encouraging employees to return to the office, arguing improved in-person collaboration as a key benefit. In recent months, peers such as the Bank of Montreal ( opens new tab and the Royal Bank of Canada ( opens new tab have made similar steps.
Reuters
42 minutes ago
- Reuters
Sunkist wins US court appeal to block 'Kist' trademark
July 23 (Reuters) - Sunkist Growers convinced a U.S. appeals court on Wednesday to block a soft-drink maker's attempt to register a trademark covering "Kist" drinks. The U.S. Court of Appeals for the Federal Circuit, observing that the case "concerns kisses, sunlight, and soft drinks," agreed with Sunkist, opens new tab that the U.S. Patent and Trademark Office should have rejected Intrastate Distributors Inc's "Kist" trademark because it could create confusion with Sunkist's orange sodas. Spokespeople and attorneys for Sunkist and IDI did not immediately respond to requests for comment on the decision. Citrus-grower cooperative Sunkist Growers has sold its Sunkist soft drinks since the 1930s. Detroit-based IDI bought the rights to Kist, a vintage Midwestern soda brand, in 2009, and has been using the name with sparkling waters and glass-bottle sodas since 2014. IDI applied for a federal trademark covering "Kist" in 2019. The USPTO rejected Sunkist's opposition to the application in 2023, finding that IDI's brand would not confuse consumers because Sunkist's marketing references the sun while Kist's references kissing. The Federal Circuit reversed the USPTO's ruling and blocked IDI's federal trademark on Wednesday. The appeals court determined that Kist's marketing does not focus on kisses and that the USPTO "overly relied" on Sunkist's sun logo in comparing the brands, finding that "Kist" and "Sunkist" are confusingly similar brand names for drinks. The case is Sunkist Growers Inc v. Intrastate Distributors Inc, U.S. Court of Appeals for the Federal Circuit, No. 24-1212. For Sunkist: Leigh Lindquist of Sughrue Mion For IDI: Michael Cummings of Cummings McClorey Davis & Acho
