Keyera Corp., AltaGas Ltd., and CN have announced a strategic partnership to advance the Alberta Corridor Export (ACE) Rail Terminal Project. This collaboration aims to strengthen Canada's energy supply chain and boost competitiveness in global markets.
Project Overview
The ACE Rail Terminal will be owned and constructed by Keyera on its lands within Alberta's Industrial Heartland. The project is supported by long-term commercial agreements with AltaGas and CN. The terminal features unit train loading capabilities, providing an efficient and scalable rail solution connecting the Fort Saskatchewan region to West Coast export markets via CN's network and AltaGas' global export platform.
Investment and Capacity
Keyera's initial investment is approximately $240 million, including $100 million incremental to its 2026 growth capital guidance. Upon start-up, the terminal is expected to transport about 45,000 barrels per day of propane and butane from Fort Saskatchewan to West Coast facilities. The infrastructure is highly scalable to support additional energy products as markets evolve.
Design and Timeline
The terminal will use a unit train capable rail loop design to improve loading efficiency, reduce handling, and lower transportation costs. Construction is underway, with land clearing activities ongoing, and an expected in-service date of mid-2028, aligned with Keyera's KFS Fractionation III project.
Executive Statements
Dean Setoguchi, President and CEO of Keyera, stated: "This project reflects our focus on strengthening Keyera's integrated value chain while providing customers efficient market access and benefiting from growing global LPG demand. We are thrilled to partner with two industry-leading Canadian companies to create jobs and support the competitiveness of the Canadian energy industry."
Vern Yu, President and CEO of AltaGas, said: "This agreement strengthens AltaGas' open-access energy export platform. Leveraging unit train capability enhances efficiency and reduces costs, creating greater value for customers and strengthening global competitiveness. We value our relationships with Keyera and CN."
Tracy Robinson, President and CEO of CN, commented: "CN's network connects customers' products to global markets. The ACE Rail Terminal is strategic infrastructure that adds efficient capacity between Alberta's Industrial Heartland and West Coast gateways, particularly the Port of Prince Rupert. It supports the competitiveness of Canadian energy products and reflects the kind of supply chain investment Canada needs."
