AltaGas Ltd.
TSX : ALA

AltaGas Ltd.

October 02, 2017 07:40 ET

AltaGas Commissions Townsend 2A and Provides Update on North Pine and Ridley Island Propane Export Terminal

CALGARY, ALBERTA--(Marketwired - Oct. 2, 2017) - AltaGas Ltd. ("AltaGas") (TSX:ALA) announced today that commercial operations commenced at its 99 Mmcf/d shallow-cut natural gas processing facility (Townsend 2A), located on the existing Townsend site, adjacent to the currently operating Townsend Facility. Commissioning of Townsend 2A was completed on October 1, 2017. Volumes are expected to progressively ramp up through the fourth quarter of 2017 to the first quarter of 2018. The $125 million project was completed slightly ahead of schedule and approximately $5 million under budget. AltaGas and Painted Pony Energy Ltd. (Painted Pony) have entered into 20-year take-or-pay agreements in respect of Townsend 2A and the incremental field compression equipment, subject to the satisfaction of certain conditions contained in those agreements.

"By linking our significant midstream projects together - Townsend, North Pine and the Ridley Island Propane Export Terminal (RIPET) - we are executing on our vision of offering Canadian producers a complete energy value chain. Our Townsend Gas Processing Complex is at the heart of our northeast British Columbia strategy and the safe commissioning of Townsend 2A marks the second stage of development at the complex, with permitting in place to increase by a further 99 Mmcf/d," said David Harris, President and CEO of AltaGas. "The on-time and under budget commissioning of Townsend 2A was made possible through the success of AltaGas' self-perform model and by the outstanding contributions of local First Nations, including Halfway River First Nation and Blueberry River First Nation, our dedicated employees and contractors."

AltaGas has also significantly advanced its other major construction projects for its northeast B.C. and energy export strategies. The 10,000 Bbls/d North Pine NGL Separation Facility is tracking under budget and ahead of its previous schedule of the first quarter of 2018, with an online date now expected in early December 2017. This investment will be backstopped by long-term supply agreements with Painted Pony for a portion of the total capacity, and will include dedication of all of Painted Pony's NGL produced at the Townsend and Blair Creek facilities. The remaining capacity is expected to be filled with NGL produced in the area.

At RIPET, construction continues to progress with the third of eight concrete pours underway and the final pour scheduled near the end of 2017. As construction progresses at RIPET, AltaGas is seeing increased interest from western Canadian producers and aggregators looking for new access to premium Asian markets for their propane. Construction is tracking on budget and RIPET is expected to be in service by the first quarter of 2019.

AltaGas is an energy infrastructure company with a focus on natural gas, power and regulated utilities. AltaGas creates value by acquiring, growing and optimizing its energy infrastructure, including a focus on clean energy sources. For more information visit: www.altagas.ca

This news release contains forward-looking statements. When used in this news release, the words "vision", "may", "would", "could", "can", "will", "be", "intend", "possible", "plan", "develop", "anticipate", "target', "believe", "seek", "propose", "continue", "estimate", "expect", and similar expressions, as they relate to AltaGas or an affiliate of AltaGas, are intended to identify forward-looking statements. More particularly, and without limitation, this news release contains forward-looking statements with respect to ramping of volumes at Townsend 2A, the take or pay arrangements, AltaGas' view of the nature of its midstream projects and its ability to offer producers a complete energy value chain, potential for further expansion of the Townsend Gas Processing Complex, expectations regarding the North Pine Facility including, budget, nature of supply agreements, expected volumes, sources thereof and volume dedication and construction and online schedule, expectations regarding RIPET including budget, construction and in service timeline, access to and nature of Asian markets and AltaGas' view of the nature and level of interest. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect AltaGas' current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in AltaGas' public disclosure documents. Many factors could cause AltaGas' actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release as intended, planned, anticipated, believed, sought, proposed, estimated or expected, and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. AltaGas does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

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