AltaGas reported its third quarter 2026 results on October 29. The company’s two LPG export terminals shipped a record 147.2 Mb/d of LPG to Asia, up 11% year-over-year, including 89.1 Mb/d from its Ridley Island Propane Export Terminal (RIPET), and 58 Mb/d out of Ferndale. Gathering and Processing volumes were up 20% year-over-year thanks in part to the start-up of the Pipestone II natural gas plant late last year.
Due to strong financial results in Q3, management now expects 2026 Normalized EBITDA and EPS to land towards the higher end of its prior guidance ranges, despite a labor strike at Trigon’s Pacific Terminals that began October 2. Trigon provides rail logistics and berthing services for RIPET, and while RIPET’s October volumes were not materially impacted, AltaGas expects reduced volumes out of RIPET going forward while the strike continues.
There were no material changes to in-service timing guidance for AltaGas’s various LPG export terminal projects at Prince Rupert. Phase 1 of the Ridley Island Energy Export Facility (REEF), which will add 56 Mb/d of LPG export capacity, is now about 90% complete and continues to be expected to be in service in Q1 2027 at a cost of roughly CAD$1.5 billion. Construction of the jetty is now complete (see image below), and the focus is shifting to the installation of the mooring system, which is now expected complete early in the new year instead of by December, and suction anchors. The RIPET methanol removal project is expected to be mechanically complete within weeks with start-up on track for year-end 2026. Completion of REEF Optimization I (+30 Mb/d propane capacity) continues to be expected in the second half of 2027, and AltaGas continues to target an FID for REEF Optimization II (+60 Mb/d LPG capacity) by year-end, with an in-service date potentially as early as late 2029.
REEF Jetty Source: AltaGas
As for natural gas pipeline projects, construction of the 550 MMcf/d Mountain Valley Pipeline (MVP) Southgate extension, which runs for 31 miles from the MVP Mainline at Pittsylvania County, VA to delivery points in Rockingham County, NC, is more than 70% complete with project completion expected by year-end, while the MVP Boost project, which will add compression and about 0.6 Bcf/d of capacity to the MVP Mainline, remains on track for mid-2028 completion (AltaGas has a 10% stake in MVP). In Michigan’s Upper Peninsula, construction of the Keweenaw Connector Pipeline is now about 85% complete and remains on schedule to be in-service by year-end.
