AltaGas is in active discussions with more Asian customers to supply fuels from its Ridley Island Propane Export Terminal in British Columbia, the company's CEO revealed on Thursday.
Expanding Market Reach
The terminal, located about 10 kilometers south of Prince Rupert, B.C., is a key asset for AltaGas as it seeks to diversify its customer base beyond traditional markets. The CEO emphasized that the company is seeing strong interest from Asian buyers, particularly in the propane and butane markets.
“We are in advanced talks with several new potential customers in Asia,” the CEO said during a conference call with analysts. “This aligns with our strategy to expand our global footprint and leverage the strategic advantages of our B.C. terminal.”
Strategic Importance
The Ridley Island terminal has the capacity to export up to 40,000 barrels per day of propane and butane. It provides a direct shipping route to Asian markets, reducing transit times compared to other North American export facilities.
AltaGas has already secured long-term contracts with several Asian buyers, and the new discussions could lead to additional agreements that would increase utilization rates at the terminal.
Market Conditions
The CEO noted that global demand for propane and butane remains robust, driven by industrial and residential use in Asia. “The fundamentals are strong, and we are well-positioned to meet this demand,” he added.
The company is also exploring opportunities to expand the terminal’s capacity in the future, subject to market conditions and regulatory approvals.
AltaGas shares rose 1.5% on the Toronto Stock Exchange following the announcement.
