- The agreement begins in 2027, supplying butane via Ridley Island Energy Export Facility.
- REEF, under construction in British Columbia, is set to complete by end of 2026.
- BASF will use the butane as feedstock for its production in Asia.
- AltaGas diversifies its customer base with BASF, enhancing its export platform.
Agreement Overview
BASF Intertrade AG and AltaGas Ltd. have entered a long-term agreement for the supply of butane, starting in 2027. The butane will be transported via the Ridley Island Energy Export Facility (REEF), a large-scale terminal currently under construction in British Columbia, Canada.
REEF Facility Details
REEF is an open access liquefied petroleum gas and bulk liquids terminal with comprehensive rail and marine infrastructure. The facility is expected to be completed by the end of 2026, enhancing the export capabilities of AltaGas.
Impact on BASF
This agreement allows BASF to access competitive and reliable butane from Western Canada, which will be used as feedstock for its expanding production operations in Asia. The deal diversifies BASF's cracker feedstock portfolio and strengthens its supply chain resilience.
Benefits for AltaGas
For AltaGas, the agreement reduces risk and diversifies its downstream customer base by adding BASF, a globally recognized company, to its clientele. This move supports AltaGas' strategic priorities and enhances the value of its west coast LPG export platform.
