AltaGas Expands Asian Market Presence for Propane and Butane Supplies

📅 5 days ago

AltaGas Ltd. is engaging with Asian markets to supply propane and butane, addressing regional shortages caused by geopolitical tensions and supply chain disruptions.

CALGARY, ALTA. — AltaGas Ltd.'s Chief Executive Officer, Vern Yu, announced during an interview at the recent Global Energy Show that the company is actively negotiating with customers across various Asian markets, including India, Vietnam, and Taiwan, to provide Canadian propane and butane. Yu highlighted that many regions in Asia are facing significant shortages of these fuels, which are essential for cooking and transportation. Historically, the United States has been the primary supplier of these products to Asia, with the Middle East also playing a crucial role in the supply chain. However, due to ongoing trade disputes with the U.S. and conflicts disrupting supplies from the Persian Gulf, there is an increasing demand from Asian customers to diversify their sources. Canada is positioned advantageously due to its shorter shipping distances to these markets. In 2019, AltaGas inaugurated Canada’s first propane export terminal located near Prince Rupert, B.C., with initial shipments directed towards Japan and South Korea. Recently, the company has also begun to penetrate the Chinese market and other Asian countries. Yu further revealed that construction on the Ridley Island Energy Export Facility, an adjacent project to the original terminal, is approximately 75% complete. This facility is expected to commence exports of both propane and butane by the end of this year.

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