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AltaGas Ltd T.ALA

Alternate Symbol(s):  ATGAF | AGASF | ATGFF | T.ALA.PR.A | T.ALA.PR.B | ATGPF | T.ALA.PR.G | T.ALA.PR.H

AltaGas Ltd. is a Canada-based energy infrastructure company that connects natural gas and natural gas liquids (NGLs) to domestic and global markets. The Company’s segments include Utilities and Midstream. Its Utilities segment owns and operates franchised, rate-regulated natural gas distribution and storage utilities, which includes four utilities that operate across five United States jurisdictions. It Utilities segment also includes storage facilities and contracts for interstate natural gas transportation and storage services, as well as the affiliated retail energy marketing business. Its Midstream segment includes global exports, which includes its two LPG export terminals; natural gas gathering and extraction, and fractionation and liquids handling. Its Midstream segment also consists of natural gas and NGL marketing business, domestic logistics, trucking and rail terminals, and liquid storage capability. Its subsidiaries include Wrangler 1 LLC, WGL Holdings, Inc. and others.


TSX:ALA - Post by User

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Post by farlharvon Nov 17, 2021 9:51pm
284 Views
Post# 34138998

Propane versus Nat Gas

Propane versus Nat GasIt is hard for those not familiar with the propane extraction process from large narural gas pipelines to understand the process. Propane has a higher BTU content then Methane. Propane extraction is measured in the number of BTU's, Gigajoules or Therms which have to be paid for in current Methane (Natural Gas) prices. I am including a link to show some of the relationship.

https://tradingeconomics.com/commodity/propane

Hedging by pre-selling the commodity does limit upside and downside future pricing. It is also possible to buy replacement natural gas in the future market from a producer. As stated earlier this practice creates stability for S+P ratings. My  experience is monies on the table have been lost because the futurists involved were not well informed. 
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