AltaGas chairman and CEO David Cornhill said the company’s investment in Petrogas brings an opportunity to expand its existing midstream assets, while increasing its ability to move NGL’s and crude oil to address market demands.
"It also brings key infrastructure needed to develop our LPG export initiative," Cornhill added.
The companies have agreed to enter into a NGL marketing arrangement. The arrnagement will see Petrogas purchasing the NGL produced for AltaGas’ account at AltaGas-owned processing facilities.
The arrangement is expected to improve optimization of AltaGas’ natural gas processing facilities and increase the company’s access to various NGL end use markets.
Subject to customary regulatory approvals, the acquisition is expected to close on 1 October 2013. It is said to support AltaGas’ LPG export initiative and improves CNG and LNG trucking opportunities.
