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AltaGas Ltd T.ALA

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

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

Post by rfguysdon Jan 27, 2021 1:52am
371 Views
Post# 32396585

Ferndale -- undervalued Hidden Jewel?

Ferndale -- undervalued Hidden Jewel?The basics are understood:
1. Export license for 40k bbl/day.

2. About 5k/10k bbl /day   Butane is export.   Butane comes for the Philips66  and BP refinery via pipeline .   Both refineries are located within a walking distance  of Petrogas.

3. Amount of Propane exported  from Ferndale is  not disclosed.  Only  a quarterly dividend is provided by Petrogas  to Altagas.

4. Ferndale  is closer  to Edmonton by rail (700mi)  than Prince Rupert to Edmonton  by rail(900mi).

5. Petrogas  has  a wharf   that is  capable  of VLGC  .

6. In 2016, Petrogas purchased the wharf from Intalco .   Petrogas  allowed  Intalco (primary)  full use of  the Wharf.   As well as  the wharf purchased,   Intalco sold  parcels of land to Petrogas surrounding  the Wharf.   Other information is not disclosed.

7. April 2020 –Alcoa Intalco plans smelter closure in Ferndale for late summer 2020.  In late September  over 700 workers  at Intalco have been  let-go.    Company officials  blame cheap aluminium  Canadian imports for  the closure. 

8. Smelter has been  idled.  Petrogas owns  lands  about  the wharf and adjacent to smelter yards.

9. Jan 2020  Petrogas  exercises  the right to sell Petrogas to its Partners Altagas and Idemitsu.  (I  must congratulate Sam on the  job running Petrogas…..well  done).

Don’t  be  short-sighted  here.  Taking  a longer view  ,  with partners  Vopak/Idemitsu  it  would not surprise  me  to  see  a   much bigger /much stonger  Ferndale export terminal.  What stopped Petrogas…  is money --access to capital….just  too  small to do it without partners.    I  would not be too surprise to see a  bigger partnership  at Ferndale  with its  current partners  to  upgrade/facelift the facilities  at  Ferndale in the not  too distance  future.  

Well  ,   what  is there  to  stop ALTAGAS  to expand Ferndale?  People  in Ferndale  just  lost a  700 job smelter.   Regulatory….hard  to argue that a  LNG/LPG export terminal  is worse  the smelter.   Land claim issues……Petrogas owns land around  the wharf.  Congestion and Blockage on CN tracks  bottlenecks freight.   I  don’t think  that happens  in  Ferndale.    Multiple entries  into Ferndale.   Oh…..  don’t  forget 2  existing oil refineries nearby.

I am  dreaming?   GLTA

RFguy.

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