AltaGas Ltd T.ALA

Why is RIPET’s Export of PROPANE at 48k BBLS/day for 1 yr

[rfguysd]

Sometimes, when  we look  for  answers to questions the  most obvious solution   is often  overlooked.

Look  at 2   press releases 4 years  apart.
a)Propane from British Columbia and Alberta will be transported to the facility using 50-60 rail cars a day through the existing CN rail network.   --- May5 2017
 b) The terminal will offload approximately 50-60 rail cars per day .  Vopak rail Study March 2021.
 
Didn’t  change much  over the years  .  Did it?
 
Lets calculate how many barrels are  available in 60 railcars /day.
                *pressurized
                *33,800 US gals  (UTLX)
                *42 gals/ barrel
 
Barrel/day = 60 (railcars)*33,800(gals/railcar) / 42(gals/barrel)  = 48,283 barrels/day.
 

Railcars /day		Barrels/Day
60		48,285
70		56,333
80		64,380
90		72,428

 
 
So  why hasn’t Ripet increased its  throughput?  The most  likely reason is  that CNR and Altagas must have an agreement  that states 50-60 railcars/day  will be delivered to RIPET from storage in Alberta  at a certain cost .  Altagas must  be asking  for more delivery since propane prices are high and demand is good  but CNR  is refusing. 

Hence  RIPET  is at 48,300 barrels /day throughput   for   the last year.  You think there is a monopoly for cellphones……. This is far worse  don’t you think?
 
GLTA
RFguy.
 
PS.   I  would think ALTAGAS is leasing the railcars directly  from PROCOR.  I would not think CNR is involved with  any railcar leases.

[bttmfischer]

Just an uninformed question: Is CN the only company that can eliver the tankers? Is there no alternate railway company that could handle the increased volume?

[bttmfischer]

It should read DELIVER

[Rocko58]

Mr. fischer, from what i can find on maps of BC you are correct. CPRail does not run into Prince Rupert, but there is a pipeline bring built into Kitimat, a very close neighbor of P.R.  Maybe the future will require a off link to Ripet  &  Wipet.

[bttmfischer]

I think that would be a SPUR in rail linguo. How long would this spur line need to be? Could CPR be willing to construct it? Because of their shaky KCS takeover adventure, they might just be interested. The board of ALA could risk nothing by looking into it, could they?

[GunnerG]

Are nthe links to the two reports May 5, 2017 and March 2021 the links you included in a post the other day? The link the other day is a to May 6, 2017 (6th) press release that talks about 50-60 cars per day for RIPET jointly built. Then you talk about March 2021 Study.  If, it is the second link you gave the other day, they talk about 100 cars per day going to 240 at maximum capacity at

[rfguysd]

GunnerG.   Perhaps  you are right.   1)Altagas  does not want  to increase Ripet beyond 50k bbls/day throughput in a  high price/good demand market.  Maybe,  Altagas wants  to spend their CAP X dollars not on RIPET  but  on the VOPAK Tank Farm.  I was lead to believe that  Altagas could get to nameplate capacity  with