Thursday, October 31, 2019

Alta Gas exports through Ridley Island on track for expectations for 2019

Third Quarter results showcase the impact that the Ridley Island
Propane Export Terminal is having on the larger AltaGas picture

AltaGas is expressing a very positive view of the success so far of their terminal facility in Prince Rupert, noting the strong results of shipment levels in their third quarter results report released on Wednesday,

The results report is highlighted by frequent mentions of the Prince Rupert terminal and indicates the contribution that the Ridley Island Propane Export Terminal has made towards the AltaGas operations after its first full quarter of operations.

Marking the first full quarter of operations, RIPET contributed $37 million of normalized EBITDA in the third quarter of 2019 and received approximately 40,000 bbl/d for delivery to Asian markets, averaging two ships per month.

Third quarter normalized EBITDA from RIPET benefited from a higher average FEI-Mt. Belvieu hedge rate of US$14 per barrel that included second quarter supply hedges that were rolled forward to the third quarter. The resulting impact to third quarter normalized EBITDA is a one-time benefit of approximately $5 million.

As the cornerstone asset of our Midstream business, RIPET has extended our integrated value chain in northeast British Columbia, attracting additional volumes to our system, providing strong netbacks, as well as advancing future growth across our platform.

Statistics to the end of September indicate that the Ridley Island Terminal has shipped more than three million barrels of propane to Asia, sending six ships back across the Pacific carrying the resource to Asian markets.

In notes from the Announcement, Randy Crawford, the President and CEO of Alta Gas provided a glimpse at how the export facility has added to the AtlaGas footprint in Asian trade.

"RIPET has been successful in capturing incremental value for Canadian propane in international markets - a win-win for our producers and AltaGas. 

Our focus now is execution at the terminal to gain scale and efficiencies that will allow us to grow our export capabilities by further increasing capacity."

"Building upon the momentum we achieved in our Midstream business to-date, we will continue to leverage the structural advantage we have at RIPET to attract and handle more molecules in our integrated footprint. 

At our Utilities, our focus remains squarely on driving performance to lower our cost structure, and deliver exceptional service. These measures will strengthen relationships with our customers and regulators, and create an environment conducive to future growth,"

The full report from AltaGas can be explored here.

The Ridley Island Export Propane Terminal delivered its first Shipment in May.

While they are currently operating at the 40,000 barrels per day level, it's anticipated those numbers will double towards 2020 as AltaGas sources out more supply for the product.

For more items of note on the AltaGas Terminal see our archive page here.

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