AltaGas has a buyer for export propane

CALGARY — A Calgary-based company has lined up a buyer for half of the propane it hopes to export from a deep-water terminal northwest of Vancouver.

AltaGas Ltd. says it’s reached a preliminary agreement on key terms with Japanese importer Astomos Energy Corp., which would buy at least 50% of the 1.2 million tonnes of propane to be shipped from the Ridley Island Propane Export Terminal.

AltaGas announced the $400-million to $500-million propane export project in January and has begun the formal environmental review process.

The company plans to reach a final investment decision this year and begin commercial operations in 2018, subject to approvals.

AltaGas plans to use a site south of Prince Rupert, BC, leased from Ridley Terminals Inc., and connected to Canadian National’s existing rail network.