trending Market Intelligence /marketintelligence/en/news-insights/trending/oEvftdpDFfFPxpirPprqow2 content esgSubNav
In This List

AltaGas starts up North Pine NGL plant, unveils gas-focused 2018 capital program

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Using ESG Analysis to Support a Sustainable Future

Research

US utility commissioners: Who they are and how they impact regulation

Blog

Q&A: Datacenters: Energy Hogs or Sustainability Helpers?


AltaGas starts up North Pine NGL plant, unveils gas-focused 2018 capital program

AltaGas Ltd. on Dec. 1 began commercial operations at the C$120 million North Pine NGL separation facility and revealed its 2018 capital program, 60% to 65% of which would be budgeted toward the company's gas business.

AltaGas completed the project ahead of schedule and C$15 million under budget, according to a Dec. 20 news release. The facility is partly supported by long-term supply agreements with Painted Pony Energy Ltd., with the rest of total capacity to be contracted through other area producers. North Pine would provide 10,000 barrels per day of capacity for British Columbia producers.

The North Pine facility has connections to AltaGas' other infrastructure, as well as to the Canadian National Railway network, for deliveries of propane, butane and condensate to North American markets. Upon completion of the Ridley Island propane export terminal, expected in the first quarter of 2019, the North Pine facility would also carry propane supply to the terminal.

"The completion of our North Pine Facility is another major milestone in our northeast [British Columbia] strategy," said David Harris, president and CEO of AltaGas. "Once [the Ridley Island terminal] is complete, we will be able to offer producers a broad suite of midstream services and new market diversification, including premium netbacks through the strong propane demand and pricing in Asian markets."

In the same release, AltaGas said that it and WGL Holdings Inc. reached a settlement agreement with the Maryland Energy Administration, Montgomery County, Prince George's County, and the Laborers' International Union of North America on certain merger terms. The Maryland Public Service Commission is due to decide on the settlement by April 2018.

The companies are also expecting a decision from the District of Columbia Public Service Commission by the first half of 2018.

AltaGas announced its 2018 capital program to be in the range of C$400 million to C$500 million. With the bulk expected to be spent on the gas business, 25% to 30% would be allocated for the utility business, and the rest would go to the power business.

The majority of the capital program would be spent on the construction of the Ridley Island terminal, along with growth and maintenance of rate base at its utilities. Maintenance capital for gas and power is expected at C$25 million to C$35 million.

Upon closing of the merger with WGL, the combined company is projected to have a consolidated capital program of about C$1.2 billion to C$1.5 billion for 2018. About half of the budget would be allocated to the gas business, and the rest would go to the utilities and power businesses. The majority of WGL's 2018 capital program is expected to be invested in the Central Penn and Mountain Valley gas pipeline projects.