AltaGas has entered into a definitive agreement with Black Swan Energy Ltd. to acquire 50% ownership in certain existing and future natural gas processing plants of Black Swan (the Aitken Creek Processing Facilities). Upon the completion of the acquisition, AltaGas and Black Swan will enter into long term processing, transportation and marketing agreements that also include new AltaGas Liquids handling infrastructure. The total capital investment by AltaGas for 50% ownership in the Aitken Creek Processing Facilities and new AltaGas infrastructure is anticipated at approximately $230m.
The 50/50 infrastructure joint-venture, combined with existing and new AltaGas owned and operated liquids handling infrastructure, will further strengthen AltaGas’ Northeast B.C. value proposition and energy export strategy that includes gas processing, liquids handling, field fractionation, and propane export via AltaGas’ Ridley Island Propane Export Terminal (RIPET).
The long term processing agreement for use by Black Swan of AltaGas’ processing capacity at the Aitken Creek Processing Facilities will be underpinned by a reserve dedication and area of mutual interest encompassing approximately 30% of the Black Swan Montney lands as well as a priority of fill arrangement for AltaGas capacity ownership in the facilities. Black Swan will continue to operate the North Aitken Creek Processing Facilities.
The transportation and marketing arrangements will provide AltaGas with long-term natural gas liquids (NGL) dedication to AltaGas’ liquids handling infrastructure and North Pine field fractionation facility (North Pine), as well as corresponding propane marketing arrangements. The initial term of the commercial arrangements is 15 years and will provide both parties with an option to extend through additional natural gas processing investments.
The transaction is anticipated to close in early October 2018, subject to satisfaction of customary closing conditions.
For more information visit; www.altagas.ca
1st October 2018
