Canada-based energy infrastructure firm AltaGas has signed long-term agreements with pipeline operator Keyera for processing liquefied petroleum gases (LPGs), as Canada seeks to reduce their dependence on US market in light of recent tariffs imposed by US President Donald Trump.

First, AltaGas will process 8,000 barrels per day at Keyera’s natural gas liquids (NGLs) processing and storage facility in Saskatchewan, Canada. This 18- year agreement entails AltaGas to separate raw natural gas into individual substances such as methane, ethane, propane, butane and natural gasoline.

The processed NGLs are then transported to AltaGas’ Ridley Island Energy Export Facility, expected to be operational by 2026 with LPG export capacity of 12,500 bbl/d. The processed NGLs , under a 15-year tolling contract, will be prepared for export and shipped to key Asian markets. Notably, the facility takes only ten shipping days to reach Northeast Asian markets.

“These agreements strengthen the long-term growth and predictability of cash flows for both companies and strengthens Canada’s link into key Asian markets,” said Vern Yu, President and CEO of AltaGas.