AltaGas says it has reached a deal with Black Swan Energy that, among other things, achieves the full supply target for its propane export terminal on the B.C. coast.
AltaGas will acquire 50 percent ownership in two Black Swan gas plants in northeast B.C.; one that operating and one that is under construction.
Meanwhile, Black Swan will enter into an arrangement to utilize existing and planed AltaGas infrastructure including liquids pipelines, fractionation and terminalling.
AltaGas said the total capital investment for the 50 percent ownership in the gas plants and new area infrastructure is $230 million.
Under the deal, more than 50 percent of Black Swan’s propane produced at the AltaGas North Pine facility will be exported through its Ridley Island Export Terminal, which is currently under construction.
AltaGas said the agreement with Black Swan, along with its recently-announced supply deal with Kelt Exploration, triggers an expansion of fractionation capacity at North Pine from 10,000 to 20,000 bbls/d.
“This joint venture with Black Swan further strengthens our position and capture area in one of the most prolific natural gas basins in North America,” AltaGas chairman David Cornhill said in a statement.