Petrogas Continues to Solidify Its West Coast LPG Export Position
Petrogas Energy Corp. is pleased to announce that it has, through its wholly owned US subsidiaries, entered into agreements with Intalco Aluminum (Intalco) for the acquisition of Intalco’s Ferndale, Washington deep water Wharf and a portion of Intalco’s lands. The acquisition of the Wharf has received regulatory approvals and is expected to close in the near term. Terms of the deal were not disclosed.
The Wharf is adjacent to the Petrogas Ferndale Terminal which provides storage and distribution of propane and butane to domestic and international markets. The sale will not impact Intalco’s ability to operate the smelter which will continue to utilize the wharf for receiving and offloading alumina. With this acquisition, Petrogas Energy Corp. solidifies its investment in its Ferndale Terminal.
Producers who are interested in exploring opportunities for long term export capability of their LPG’s should contact Greg Johnson, Senior VP Supply at (403) 705-2015, email firstname.lastname@example.org or Ken Wentworth, Senior VP Marketing at (403) 705-2043, email email@example.com.
Petrogas Energy Corp. is a 30 year old, Calgary based, private, mid-stream company with operating assets in both Canada and the USA, engaged in transportation and terminaling logistics and the marketing of LPG’s and other petroleum products.
ATCO Energy Solutions and Petrogas Developing Salt Caverns for Hydrocarbon Storage
Offers a New Market Choice for Hydrocarbon Storage Services in Alberta's Industrial Heartland
CALGARY, ALBERTA--(Marketwired, Sept. 23, 2014) - ATCO Energy Solutions Ltd., in partnership with Petrogas Energy Corp., announced today that it will develop four salt caverns, with the capacity to store approximately 400,000 cubic metres of propane, butane and ethylene to provide the Natural Gas Liquids (NGL) market in western Canada with a new alternative for hydrocarbon storage. The facility will be located at ATCO's Heartland Energy Centre near Fort Saskatchewan.
"ATCO Energy Solutions and Petrogas bring proven expertise in the development, operation, and management of large scale hydrocarbon facilities," said Patrick Creaghan, President, ATCO Energy Solutions. "The location and in-service date of this storage facility have been strategically selected to help customers solve the logistical challenges that restrict moving NGL product to market. ATCO has already seen a tremendous response to this project and will work with customers to explore additional hydrocarbon storage capacity in this key growth area."
The storage facility will be connected to Petrogas' existing Fort Saskatchewan hydrocarbon truck and rail terminal that currently receives and distributes multiple products in the marketplace.
"This development will provide a unique market option and establish enhanced storage services to Alberta's Industrial Heartland", said Stan Owerko, President & Chief Executive Officer, Petrogas Energy Corp. "The Petrogas terminal is undergoing expansion to accommodate this storage initiative and provide additional throughput and distribution capacity. This project will support the movement of increasing volumes of Western Canadian LPG production to traditional North American markets as well as key International export markets through Petrogas' West Coast LPG export terminal at Ferndale, WA."
Cavern drilling and long lead procurement is currently underway for the facility that will be built and operated by ATCO Energy Solutions. Commercial operation for two caverns is targeted for the second quarter of 2016 and is strategically timed to offer additional product storage and handling services to meet market demands. Two additional caverns are anticipated to be completed by the second quarter of 2017.
ATCO Energy Solutions builds, owns and operates non-regulated energy and water-related infrastructure. The company focuses on offering industrial water infrastructure solutions; natural gas gathering, processing and storage and natural gas liquids extraction, transportation and services to the energy industry.
With more than 9,000 employees and assets of approximately $17 billion, ATCO is a diversified global corporation delivering service excellence and innovative business solutions worldwide with leading companies engaged in Structures & Logistics (manufacturing, logistics and noise abatement), Utilities (pipelines, natural gas and electricity transmission and distribution), and Energy (power generation and sales, natural gas gathering, processing, storage and liquids extraction).
Petrogas is a well established, customer focused midstream marketing and logistics company offering full supply chain management for natural gas liquids, crude oil, condensate and renewable fuels with assets providing storage, transportation and terminal services.
Petrogas Acquires West Coast Export Facility
CALGARY, ALBERTA--(Marketwired - March 4, 2014) - Petrogas Energy Corp. is pleased to announce that it has entered into a binding agreement with Chevron USA Inc. ("Chevron") for the purchase of Chevron's Ferndale Washington storage and distribution facility for bulk shipments of propane, butane and iso-butane (collectively "LPG"). The transaction price is confidential and the purchase is subject to usual government and regulatory body approvals with a closing date expected to be on March 31, 2014. The Ferndale Terminal acquisition provides a strong fit for AltaGas Ltd. ("AltaGas") and Idemitsu Kosan Co. Ltd. ("Idemitsu"), who recently acquired interests in Petrogas, providing AltaGas with direct offtake for their proprietary production and for Idemitsu to acquire North American LPG for its LPG sales and distribution infrastructure in Japan as well as its other interests in southeast Asia.
The Ferndale Terminal has the capability to handle exports and imports of up to 30,000 barrels a day of LPG and has facilities to handle and supply propane to the regional market for US domestic consumption. The Ferndale Terminal has rail, truck and pipeline capability and is connected to the two local refineries offering LPG balancing services.
Commenting on the transaction, CEO Stanley Owerko noted that recent market and logistical developments have led many Western Canadian producers to seek alternative outlets for their production. The Cochin Pipeline, originating in Edmonton, Alberta and terminating in Sarnia, Ontario has been a strategic outlet for Western Canadian propane production since the 1970's, having the capability to handle up to 50,000 barrels a day of propane. The recent decision to take the Cochin pipeline out of propane service and to convert it to a diluent pipeline has left Western Canadian producers in a difficult position for managing their production. "Petrogas is well positioned to provide additional takeaway capacity with its recently expanded Ft. Saskatchewan Terminal, providing an outlet for increasing LPG production in the Western Canadian sedimentary basin."
AltaGas Acquires 25 Percent Strategic Interest in North American Integrated Midstream Company
CALGARY, ALBERTA--(Marketwired - Sept. 12, 2013) - AltaGas Ltd. ("AltaGas") (TSX:ALA)(TSX:ALA.PR.A)(TSX:ALA.PR.U) announced today that it has entered into an agreement (the "Purchase Agreement") to acquire a 25 percent strategic interest in Petrogas Energy Corp. ("Petrogas"), a privately held leading North American integrated midstream company, for approximately 2.8 million shares of AltaGas Ltd. priced at $35.69, the 20-day volume weighted average price, and cash (the "Acquisition"). The Acquisition is expected to be meaningfully accretive to earnings and cash flow per share.
"Our investment in Petrogas provides strategic alignment with a major North American integrated midstream service provider and brings a unique opportunity to optimize and expand our current midstream assets, increasing our ability to move NGL's and crude oil to meet market demands. It also brings key infrastructure needed to develop our LPG export initiative," said David Cornhill, Chairman and CEO of AltaGas. "Petrogas is a strong fit with our strategy of adding assets that provide energy solutions for our customers."
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ATCO Energy Solutions in conjunction with Petrogas Energy Corp. combine expertise to progress development of salt cavern storage facilities in Alberta’s Industrial Heartland.
ATCO Energy Solutions Ltd. and Petrogas Energy Corp. have entered into an agreement for the development of a salt cavern storage opportunity on ATCO owned land in the Alberta Industrial Heartland near Fort Saskatchewan. This development opportunity represents a strategic relationship between an established energy infrastructure provider and a midstream energy company, to offer a new market alternative for storage, transportation, and logistics services.
As envisioned, the first phase storage development will include four salt caverns with capacity to store approximately 480,000 cubic metres of natural gas liquids (NGLs), diluents, and hydrocarbon commodities. Utilizing existing ATCO cavern mining assets, detailed engineering and site preparation is currently underway. Commercial operation is targeted for the third quarter of 2015 and is strategically timed to offer additional product storage and handling services to meet the demands of increased liquid-rich gas production and heightened oil sands activity.
The proposed storage facility will be connected to Petrogas’ existing Fort Saskatchewan hydrocarbon truck and rail terminal which currently receives and distributes multiple products in the market. The Petrogas terminal is undergoing expansion to accommodate this storage initiative and provide additional throughput and distribution capacity to the regional market.
Leveraging our combined strengths
Together, ATCO Energy Solutions Ltd. and Petrogas Energy Corp. deliver proven expertise in the development, operation, and management of large scale hydrocarbon facilities. This development will provide a unique market option and establish enhanced storage services to the market.
For further detail please contact:
Infrastructure Development & Project Execution
ATCO Energy Solutions
Senior Vice President,
Commercial & Business Development
Petrogas Energy Corp.
The Calgary downtown core is open for business 12 days after flood.
The Calgary downtown core remains in a state or emergency but some staff have returned to work.
Petrogas offices in Calgary are open with telephone and network services (email) online.
Please direct all inquires to your regular company contacts.
Petrogas offices in Calgary are without power due to flooding in the city downtown core.
Staff are working remotely to manage business operations during this difficult period.
Urgent business inquires should be sent to Infosys.firstname.lastname@example.org
Further updates will be posted here when available.
Petrogas Energy Corp. welcomes Premier Ed Stelmach to the Fort Saskatchewan terminal facility.
Premier's visit (left to right); Stan Owerko (Petrogas), Mayor Gale Katchur (City of Fort Saskatchewan), Premier Ed Stelmach (Goverment of Alberta), Pat O'Neil (Petrogas)
Stan Owerko (Petrogas), Premier Ed Stelmach (Goverment of Alberta)