​AltaGas completes new Montney liquids plant ahead of schedule, to focus on propane export terminal in 2018

AltaGas CEO David Harris. Image: Joey Podlubny/JWN

The 10,000-bbl/d North Pine NGL separation facility near Fort St. John, BC is now up and running, months before its original schedule thanks to construction progressing faster than expected.

AltaGas says the project, which has Painted Pony Energy as its anchor customer, was completed approximately $15 million under its budget, coming in at $120 million.

With the North Pine facility complete, the company will now turn its capital spending to focus on its Ridley Island Propane Export Terminal in its focus to provide “a broad suite of midstream services and new market diversification,” CEO David Harris said in a statement.

AltaGas said the terminal is also currently ahead of schedule and under budget.

The company plans a capital program of $400 million to $500 million in 2018, not including spend related to the company’s $8.4 billion acquisition of Washington, DC-based utility WGL Holdings, which is moving through the regulatory process.

Investment next year will focus on the Ridley Island terminal, AltaGas said on Wednesday. Overall, spend will be directed up to 65 percent to its gas business and up to 35 percent to its utilities business, with remaining dollars going to its power business. Capital investment in 2018 will increase substantially following a successful close of the WGL deal.

“The consolidated 2018 capital program for AltaGas and WGL on a combined basis, assuming a Q2/2018, closing is expected to be in the range of approximately $1.2 - $1.5 billion. Close to half of this total will be allocated to Gas, with the majority of the remaining expected capital for Utilities, followed by Power,” the company said.

AltaGas expects that the largest portion of WGL's total 2018 capital program will be allocated to investments in the Central Penn and Mountain Valley gas pipeline developments in the Marcellus region.