CALGARY — AltaGas Ltd. and Japanese energy company Idemitsu Kosan Co. Ltd. are forming a joint venture aimed at exporting liquefied petroleum gas (LPG) and liquefied natural gas (LNG) from Canada to Asia.
Each company will own 50% of the new enterprise, AltaGas Idemitsu Joint Venture Limited Partnership.
“We are excited to partner with Idemitsu, a global leader in the supply of energy, petroleum, lubricants and petrochemical products and services to the people of Japan. Idemitsu has a proud heritage of creating value for the benefit of Japan and the societies, consumers and communities in which they operate,” said David Cornhill, chairman and CEO of AltaGas, a Calgary-based energy company.
The companies said the Partnership company aims to develop long-term natural gas supply and sales arrangements to meet the growing demand for natural gas in Asia, particularly Japan, Asia’s largest LNG consumer.
The joint venture will undertake feasibility study that will be completed in early 2014 for the development and construction of liquefaction facilities as part of the proposed exporting project.
Pacific Northern Gas Ltd., a wholly owned AltaGas subsidiary, will provide the pipeline capacity required to transport natural gas to the liquefaction facility.
Following consultations with First Nations, and the completion of studies and various regulatory hurdles, the companies forecast exports ready to begin in 2017.
LPG exports will also be pursued, which would involve logistics, plant refrigeration and storage facilities. A feasibility study is to be completed this year, and with approvals in order, exporting could begin in 2016.
The two companies intend to extend the partnership to owning and operating other infrastructure assets for other energy businesses in North America.