AltaGas could double Ridley volumes in 2020

AltaGas plans to expand its Ridley Island propane export terminal (RIPET) in British Columbia in 2020, after commissioning the terminal in the second quarter of this year.

RIPET, with 40,000 b/d of export capacity, was designed with the possibility of expansion to as much as 80,000 b/d with minimal costs, chief executive Randy Crawford said on a conference call today. The companyplans to gradually increase export volumes during 2020, potentially doubling capacity by the end of next year, Crawford said.

AltaGas exported 3mn bl of propane through RIPET during the third quarter, which is about equal to six very large gas carriers (VLGC) or 40,000 b/d of propane exports.

The company continues to work on securing additional propane volumes for 2020 and has secured a significant portion of supply before the new contract year that starts in April. AltaGas plans to increase tolling volumes to 35pc of total volumes in 2020 from 15pc currently.

AltaGas is still considering the opportunity in butane exports through RIPET. Company executives noted that significant butane volumes were exported by Petrogas to Asia through the Ferndale terminal in Washington state.