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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

Comment by rfguysdon Jan 27, 2021 11:31pm
278 Views
Post# 32406636

RE:RE:Ferndale -- undervalued Hidden Jewel?

RE:RE:Ferndale -- undervalued Hidden Jewel?WalterWhy.   You  did find  the overall  lease  agreement  with coveats.  So  there  are a  few  restrictions  in  use of  the prior / Wharf  and the adjacent lands.  Too  much  too hope  for.

Petrogas20191211

Restrictions:
1) 48 vessels /yr
2)Pursuant to the terms of the Aquatic Lands Lease, Petrogas is prohibited from loading/unloading any other product than LPGs from the wharf.
3)Any  additional  product exports or  increases to exports  would likely  require Petrogas to obtain  Substantial Development Permit from Whatcom County; approval from the Department of Natural Resources to consent to the change of use for the wharf; an Environmental Impact Assessment under the State Environment Policy Act; a Joint Aquatic Resource Permit Application; and approval from both the US Army Corps of Engineers and the Washington Department of Fish and Wildlife 
4)No  oil products  .....without going through item 3.

RFguy




WalterWhy - (1/27/2021 10:29:50 PM)
RE:Ferndale -- undervalued Hidden Jewel?
Thanks, RFguy--I hope you're right! 

There was an article from 2016 in the Bellingham Herald that had the following info:

Petrogas has applied to take over the Aquatic Lands Lease between Intalco and Washington state, which includes the wharf and pier.

The lease states the wharf can have “a maximum of 48 vessel dockings per year for all products (Intalco as well as Petrogas),” according to a letter sent to Whatcom County Council on July 5.

Petrogas Energy Corp. bought the Ferndale terminal from Chevron in 2014, with plans to “handle exports and imports of up to 30,000 barrels a day of LPG” and supply propane to the U.S. market, according to a news release from early 2014.

Since Petrogas took over the facility, it has spent more than $40 million on upgrades and maintenance, according to a letter local manager Andrew Gamble sent to Whatcom County Council on July 11.


rfguysd wrote: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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