Birchcliff & AltaGas enter processing arrangement
16 April 2018
Birchcliff Energy Ltd. (“Birchcliff”) and AltaGas Ltd. (“AltaGas”) are pleased to announce that they have entered into a definitive agreement for a long-term natural gas processing arrangement (the “Processing Arrangement”) at AltaGas’ deep-cut sour gas processing facility located in Gordondale, Alberta. The new Processing Arrangement will replace the parties’ existing Gordondale processing arrangement. Under the Processing Arrangement, Birchcliff is being provided with up to 120 MMcf/d of natural gas processing on a firm-service basis, and Birchcliff’s take-or-pay obligation is 100 MMcf/d. The term of the Processing Arrangement is for at least 15 years, subject to extension in accordance with the terms of the agreement.
In addition to the Processing Arrangement, Birchcliff, AltaGas and certain affiliates of AltaGas have entered into a product purchase and sale agreement. Pursuant to this agreement, Birchcliff will sell propane to the AltaGas parties, including for delivery to AltaGas’ proposed Ridley Island Propane Export Terminal which is anticipated to commence commercial operations in Q1 2019.