Canada-based AltaGas and Japan’s Idemitsu Kosan have signed an agreement to form a joint venture (JV) company called AltaGas Idemitsu Joint Venture Limited Partnership.

The JV company, wherein each of the firms will own a 50% interest, will allow export of liquefied petroleum gas (LPG) and liquefied natural gas (LNG) from Canada to Asia.

The new company will develop long-term natural gas supply and sales arrangements to meet the growing demand for natural gas in Asia.

Under the agreement, Japan will benefit from a new, clean, stable, and reliable source of LNG from Canada and will help the country to meet its growing demand for natural gas.

The JV company will conduct feasibility studies to develop and construct liquefaction facilities, as part of the proposed project to export LNG to markets in Asia, which is expected to complete in the beginning of 2014.

AltaGas chairman and CEO David Cornhill said Idemitsu is a global leader which supplies energy, petroleum, lubricants and petrochemical products and services to Japan.

"We are pleased to work with Idemitsu to develop opportunities that will be good for the people of Japan and Canada," added Cornhill.

As a part of the partnership, both the companies will develop a LPG export business, which will include logistics, plant refrigeration and storage facilities.

The JV company will evaluate additional opportunities to own and operate infrastructure assets of other energy businesses in North America.