AltaGas Ltd T.ALA

Ferndale -- undervalued Hidden Jewel?

[rfguysd]

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.

[bossu]

Probably dreaming but interesting info. What we need from Petrogas is:Numbers We have had an indication from Randy at the time of the deal to buy an additional 37% to own a total of 74% . The only on thing about Petrogas possible EBITDA is : «Petrogas is one of the largest privately held mid-stream and logistics companies in North America with operations dating back to 1986. The company

[Bushman3333]

All time positive assuring, thanks ,the best for you and yuor family,le meilleur pour vous et votre famille, Mr Bossu.

[WalterWhy]

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

[rfguysd]

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

[WalterWhy]

Agreed.  Looks like it's good for LPG, but they have to go through Item 3 for the gravy.  Not sure what the timeline on the process is for that, but it's probably long.  The only mitigating factor is that with the Smelter closing, they might have some pressure to restore jobs to the area.

[rfguysd]

Let  me provide  the forum with a  satellite image (10 mile altitude) of  the Ferndale Petrogas  plant.   (google provides  these things  for free.....since  the image is about 3 years old).   Off  topic...... cities accessors  ,  roofers,  land developers  use  an updated version with recent images  to&

[rfguysd]

I  noticed  that the stockhouse  editor  has blocked  the satellite image.   Must be stockhouse cannot  be liable  for  "bad taste in images"  so  the editor blocks  the image prior  to posting.   So  I will  circumvente the  editor  buy  posting  the url   and 

[rfguysd]

Let me apologize for Stockhouse most useless text editor.  THe URL was  not accepted by the text editor  but  the  editor  doesn't tell you that.    Now  you know bad Software....  You'll  need  to cut and paste  into a  new window  to get the google map  street image.   All else is the same in

[Bushman3333]

It's good informations, we do appreciate your input, however most of politicians are out of touch as we see Trudeau and premier of Alberta and BC, its sad. 

[oakesy]

Yes it is very sad indeed  but respectivly have to disagree .  Jason Kenny is the antithesis of Truduh , Whoregan and Biden . Of the four is the only one fighting for the Alberta energy industry and jobs. Were really up against it folks. Biden and co are steamrolling the press with their anti oil agenda and now the world wide rating agencies are on board putting oil companies on

[Bushman3333]

Oakesy ,Trudeau doesn't have balls, Biden too old for job,  Trump God father Devil  Liar thief, naked from any thing good. Politicians are crooked and liars,  Amen entabarnaque. 

[winterishere]

After reading this I will probably spend all weekend trying to think of a politician I like. None come to mind right now.

[rfguysd]

Let   me  ask  this  question?   What do  the Japanese and the Koreans   want?   Wind Turbines? Solar Panels?  You  got to be kidding.    How  about Propane?  How  about LNG?  Ah.... how  about about Hydrogen gas and fuel cells?    All  in Ferndales's court.  Imagine