AltaGas posts record LPG exports, delays Reef project

Spanish Market: LPG
04/08/26

Asia's supply diversification drive helped boost LPG exports as the firm also aims to become the first ethane exporter outside the US, writes Dennis Kovtun

Canadian midstream operator AltaGas has posted another LPG export record for the second quarter, supported by energy security and supply diversification efforts in Asia-Pacific driven by the Iran war. But the company has delayed the start-up of its 56,000 b/d (1.8mn t/yr) Ridley Island energy export facility (Reef) near Prince Rupert in British Columbia to March 2027 from the end of this year because of problems constructing the 1.2km jetty.

AltaGas exported 144,400 b/d of LPG to Asia in the second quarter, up by 13pc from a year earlier. This was shipped on 23 VLGCs, of which 13 were carrying 84,800 b/d of propane from its Ridley Island propane terminal (Ripet) and 10 loaded with 59,600 b/d of LPG from its Ferndale facility in the Washington state. "Energy security and supply diversification have become increasingly important in Asia as recent geopolitical events have reinforced the value of reliable supply," AltaGas chief executive Vern Yu says.

The challenges faced constructing Reef's in-water jetty that have postponed the project have also raised the overall cost by around 12pc to C$1.5bn ($1.1bn), AltaGas says. "We have lost over 450 rig days due to extreme weather, extreme ocean swells and marine mammal activity," Yu says, adding that the disruption exceeded normal contingency allowances. Reef is about 85pc complete, and its main loading platform is set to be shipped for installation in early September. A methanol removal unit at Ripet is on track for completion by the end of 2026.

A separate project to expand Reef's propane export capacity by 30,000 b/d is still scheduled for completion in the second half of 2027. AltaGas has also secured key regulatory permits for a second upgrade that would add 60,000 b/d of LPG capacity and is carrying out engineering work to establish final costs.

AltaGas has contracted more natural gas liquids (NGLs) production from Canadian upstream independent Tourmaline under a long-term deal, according to the latter company, without disclosing the volume or duration. The NGLs will be exported from Reef after Tourmaline's Groundbirch-Monias gas processing plant in northeast British Columbia starts up, expected in the fourth quarter of 2027. The two companies also agreed to develop a 10,000 b/d rail terminal beside the plant. Tourmaline will own the terminal and AltaGas will operate it.

Tourmaline expects direct rail shipments to the west coast to improve NGL margins by bypassing the transportation, fractionation and storage hub at Fort Saskatchewan, Alberta. AltaGas also plans to add 6,000 b/d of NGL fractionation capacity and improve liquids handling in northeast British Columbia by mid-2028.

Train dreams

AltaGas is aiming to become the first exporter of ethane outside the US. The company is eyeing the Chinese market as it looks to diversify from its dependence on US ethane, backed by the government and the wider Canadian NGL sector. AltaGas says it has received approval from Canada's transport ministry to move ethane in pressurised railcars, removing an initial barrier to potential exports to Asia by enabling ethane produced at gas processing facilities in Alberta to reach the British Columbia coast by rail.

Western Canada rejects around 500,000 b/d (10.3mn t/yr) of ethane into the natural gas stream because of limited domestic demand, Yu says. AltaGas thinks it could initially export 60,000 b/d with scope for substantial growth. That kind of volume would require about 84 railcars, or less than one unit train, assuming each carries roughly 30,000 USG.

AltaGas still needs to determine a competitive export rate and would seek a high proportion of tolling or take-or-pay contracts because ethane would be a new product serving one buyer or a small group of buyers in one location.

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14/09/26

Hormuz oversight meeting postponed: Update

Adds details throughout Singapore, 14 September (Argus) — A summit between eight Mideast Gulf littoral states to discuss the strait of Hormuz, scheduled for today, has been postponed, Oman's foreign minister said. The meeting was to take place in Salalah, Oman, between the foreign ministers of Iran, Iraq and the six members of the Gulf Co-operation Council (GCC) to address a proposal developed by Iran and Oman for safe passage of commercial vessels through the waterway. Oman's foreign minister Badr Albusaidi said the meeting was postponed "in the interests of consensus". The country's foreign ministry said the delay was "in order to prepare the appropriate conditions for constructive dialogue that contributes to achieving sustainable understandings that support the security of the region and its stability." The summit's buildup was not smooth. Drones originating in Iraq targeted Saudi Arabia's 7mn b/d East-West pipeline, forcing state-controlled Saudi Aramco to shut it down. Iraq is home to Iran-backed militia groups, which Riyadh said attacked several of its oilfields in the central and eastern Saudi Arabia earlier this year. Saudi Arabia has faced repeated attacks in recent weeks on energy infrastructure in its southern regions by the Yemen-based Houthi rebels, who are also supported by Tehran. Bahrain's ministry of foreign affairs said on 12 September it would not participate in the meeting, stating it "would not be a party to any collective meeting that includes Iran prior to the restoration of diplomatic relations." "The security and stability of the region cannot be built on turning a blind eye to aggressions, nor purchased by remaining silent on their consequences," it said, noting Bahrain has been subjected to attacks on infrastructure and civilian facilities, including the targeting of an ammonia tank, which "nearly led to comprehensive disaster." The targeting of the East-West pipeline further reflects that attacks on civilian and economic facilities "represent a present danger, not a bygone matter," the ministry said. Saudi Arabia's request The East-West pipeline, which moves crude from Saudi oil fields and processing facilities near the Gulf to the Red Sea port of Yanbu, has been Saudi Arabia's primary route for exporting crude since the start of the US-Iran war. The pipeline came under multiple attacks on 10 September , causing damage and injuring several people. The attacks probably targeted pumping stations that facilitate the flow of oil through the pipeline. Riyadh has provided no details of the damage or a timeline for restoring operations. Saudi Arabia issued no statements linking the attacks on its infrastructure to Monday's meeting, but Iran's foreign ministry spokesman Ebrahim Baghaei said Riyadh had requested the meeting in Oman be postponed, at least in part because of developments relating to the Houthis in Yemen. Baghaei denied any Iranian involvement in the attacks on the Saudi pipeline, attributing such suggestions to "those who wish ill on our region." Crude futures rose today. The front-month November Ice Brent contract rose to near $110/bl, up by nearly 5pc from the close on 11 September. By Prethika Nair and Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US rail volumes log strong growth in August: AAR

09/09/26

US rail volumes log strong growth in August: AAR

Houston, 9 September (Argus) — US rail carload volumes rose in August to the highest level in nearly eight years while weekly rail traffic rose by nearly 14pc from a year earlier, according to Association of American Railroads (AAR) data. AAR attributed the increases to resilient US consumer demand, higher US manufacturing activity, and rising diesel costs, which have made rail shipments more cost-effective compared with competing transport options such as trucks. Class I railroads shipped 533,545 carloads and intermodal units over the week ended 5 September, up by 14pc compared with the same week last year, AAR said Wednesday. Weekly non-intermodal traffic averaged more than 235,000 railcars in August, the most since October 2019 and the eighth straight year-over-year gain. Railcar growth was broad-based and stretched across 15 of the 20 carload categories that the AAR tracks. On a monthly basis, Class I railroads shipped nearly 300,000 intermodal containers and trailers per week in August, up by more than 4pc from a year earlier and besting the previous record set in June. Combined US carload and intermodal volume in August was the most in nearly eight years, AAR said without providing specifics. Metallic ore shipments posted the biggest percentage gains in August, rising by 19pc from a year earlier, followed by a 16pc increase for coke, a nearly 16pc gain for lumber and wood products and a 9.1pc increase for petroleum products. Chemicals shipments logged the seventh increase in eight months and are on a record annual pace, the AAR said, driven in part to lower US natural gas prices that have incentivized output at petrochemical and other industrial plants. Shipments of grain and coal, the two biggest categories that Class I railroads haul by volume, diverged. Grain shipments grew by 7.8pc in August from a year earlier and were up for the tenth straight month, driven by strong grain exports. Coal volumes in August fell by 2pc from year-earlier levels and were down for the sixth straight month, AAR said. Coal has become a drag on overall rail volumes after driving growth earlier in 2026. Several Class I railroads have attributed falling coal volumes to lower natural gas prices and weaker utility demand. Railed coal traffic has fallen by more than 50pc over the past 20 years but remains the single highest-volume category for most US railroads, AAR said. AAR also pointed to falling inventories of railcars in storage as another sign of strong shipping demand. Stored railcars as a share of total cars in service fell to 18.1pc in August from 21.7pc in January, and more than 59,000 railcars have been taken out of storage over that period, AAR said. By Chris Baltimore Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Hormuz traffic rose to 15 vessels Monday: Windward

08/09/26

Hormuz traffic rose to 15 vessels Monday: Windward

New York, 8 September (Argus) — Vessel traffic through the strait of Hormuz rose to 15 transits on Monday from 12 the previous day, but still remained well below pre-war levels, data from maritime security Windward shows. Of the 15 vessels that crossed the strait Monday, six were inbound, two using the US-assisted southern lane and four the Iranian controlled northern lane. There were nine outbound ships, with six taking the northern lane, two the southern and one the center, Windward data show. The amount of traffic through the strait of Hormuz remains well below its pre-war level of around 135 vessels per day. US Central Command (Centcom) said in a post on X that as of 7 September its forces have redirected 94 commercial vessels, disabled three and boarded two others as part of efforts to enforce a blockade against Iranian ports. Iran will soon announce a new and broader restricted zone for vessels looking to cross the strait, the head of Iran's Supreme National Security Council, Mohsen Rezaei, said. This new zone will begin from the line of the US Navy blockade in the Gulf of Oman and extend westward to areas within the Mideast Gulf. Ships approaching the area would be warned to stay away or risk being included on Iran's sanction list, according to Rezaei. "There will be consequences, including problems with insurance and future passage," he said. By Delfina Marchese Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Saudi Arabia says several energy facilities attacked

08/09/26

Saudi Arabia says several energy facilities attacked

Dubai, 8 September (Argus) — A number of energy sector facilities in the southern region of Saudi Arabia came under attack in the early hours of Tuesday, according to the Saudi energy ministry, causing fires at a number of locations. State-controlled Saudi Aramco temporarily halted operations at some of those facilities, the energy ministry said, as specialised emergency response teams work to contain the fire, secure the sites and assess the damage. The attacks had resulted "in injuries of varying severity among several citizens and residents", it said. The authorities are working to implement contingency measures to ensure business and operational continuity in accordance with company policy, the ministry said. The energy ministry did not specify which facilities were targeted, or who was behind these latest attacks. But the military spokesman for Yemen's Houthi rebels, Yahya Saree, has since issued a statement to say that the group had carried out "an extensive military operation" targeting Saudi Aramco in Abha, Najran and Jizan, the location of a key 400,000 b/d refinery that has been targeted by the Houthis in the past. Saree said "dozens of ballistic missiles and drones" were launched at Saudi Arabia, and that the strikes had "caused significant damage" to the facilities. The Houthi statement largely aligns with a statement issued hours earlier by Turki al-Maliki, the spokesman for the Saudi-led military coalition fighting in Yemen, who said the group had targeted "civilian and economic sites" in the cities of Abha, Khamis Mushait, Jizan and Najran, resulting in injuries to more than 70 civilians. Key Saudi infrastructure, including energy facilities, have increasingly come under attack by the Houthis since the militia group declared an end to a period of "de-escalation" with Riyadh in mid-July. The Houthis have since claimed several attacks on key Saudi energy facilities, including the 400,000 b/d Jizan refinery and the key 7mn b/d East-West pipeline that the kingdom has been using to move significant volumes of crude across the country in recent months, for export from the Red Sea. The Financial Times reported that the Jizan refinery had come under a new attack by the Houthi rebels on Monday. A source with knowledge of the events said the attacks announced by the ministry today were in addition to yesterday's incident. It is as yet unclear whether the Jizan refinery was again targeted in the Tuesday attacks. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US ethane exports hit new peak in Aug: Kpler

04/09/26

US ethane exports hit new peak in Aug: Kpler

Houston, 4 September (Argus) — US ethane exports reached a new record high of 814,000 b/d in August, data from vessel-tracking service Kpler show. The gains, which follow earlier expansions at Enterprise's and Energy Transfer's export terminals, are up from 620,000 b/d in July. The bulk of exports, or 618,000 b/d, shipped to China, as increases in ethane-derived ethylene capacity and higher naphtha prices in the region bolstered demand. Shipments to India, meanwhile fell versus July to 53,000 b/d, but were steady year-on-year. Ethane loadings bound for Europe fell from 82,000 b/d to 77,000 b/d between July and August, the lowest shipments to that region since December 2022, owing to lower ethylene prices there. Ethane shipments from Enterprise's Morgan's Point terminal near La Porte, Texas, hit a record 332,000 b/d, well over the nameplate capacity at the facility. Ethane loadings out of Enterprise's Neches River terminal rose to 188,000 b/d in August. Energy Transfer's Nederland, Texas, terminal, shipped 217,000 b/d. Energy Transfer's Marcus Hook, Pennsylvania, terminal shipped 77,000 b/d of ethane in August. Ethane prices at Mont Belvieu, Texas, in dollar-per-tonne terms, averaged a $190.71/t discount to propane in August, the narrowest spread since February. By Joseph Barbour Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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