AltaGas and Idemitsu to build LNG facility on BC coast
AltaGas Ltd (AltaGas) from Alberta in Canada and the Japanese Idemitsu Kosan Corporation Ltd (Idemitsu) have decided to form the 50/50 AltaGas Idemitsu Joint Venture Limited Partnership joint venture to export liquefied natural gas (LNG) and liquefied Petroleum Gas (LPG) from Canada to Asia.
For one year, USA and Canada rivals of announcements related to new export LNG projects.
But then there is a long way to go for the LNG carriers to Asia even if the Panama Channel is going to accept larger tankers.
In Canada, the distances to the main offshore markets, such as Japan and South Korea, are much shorter, but the challenge is onshore to gather the gas and condensate, treat them and transport them to the East Coast in British Columbia (BC) and to convert them into LNG and LPG ready for shipment.
Based in Calgary, Alberta, AltaGas is precisely one of the key player in Canada for liquid rich gas processing, power generation and utilities in Alberta and British Columbia with six extraction plants, five natural gas transmission systems, more than 70 gathering and processing facilities, three NGL pipelines, and a 6,500 km network of gathering and sales lines.
Among this network of pipelines, AltaGas owns and operates the pipeline system to supply Kitimat and Prince Rupert on the west coast.
AltaGas LNG to use same pipeline as BC LNG project
– Natural gas pipeline to the west coast
– LNG export facility near Kitimat in British Columbia with a capacity of 2 million t/y
– LPG refrigeration units, tank farm and export terminal with a capacity of 700,000 t/y
This pipeline is to be built by Pacific Northern Gas Ltd, an AltaGas wholly owned subsidiary.
The LPG should be transported by rail from Edmonton to the West coast.
In addition to this AltaGas LNG project, AltaGas and Idemitsu intend to use their partnership to investigate all other opportunities to gather natural gas and condensate source of supply in North America and to export it to Northeast Asia.