BASF Intertrade AG and AltaGas Ltd. have signed a long-term commercial agreement for the supply of butane via AltaGas and Royal Vopak's Ridley Island Energy Export Facility (FEEF) commencing in 2027.
REEF is a large-scale, open-access liquefied petroleum gas and bulk liquids terminal with comprehensive rail and marine infrastructure currently under construction on Ridley Island, British Columbia, Canada. REEF is expected to be completed by the end of 2026.
The agreement will provide BASF with access to competitive and reliable butane from Western Canada, which will be used mainly as feedstock for BASF's growing production footprint in Asia.
This partnership will diversify BASF's cracker feedstock portfolio and strengthen the link between Canada, as one of the world's largest energy producing regions, and Asia, one of the fastest-growing demand regions globally. The agreement will provide shorter lead times and reliable shipping deliveries to Asia.
"This agreement marks a significant step in strengthening BASF's global feedstock supply portfolio," says Matthias Dohrn, President Global Procurement at BASF and Chairman of the Supervisory Board of BASF Intertrade AG. "By partnering with AltaGas, we are not only securing reliable and competitive access to butane from Western Canada, but also reinforcing our commitment to supply chain diversification and resilience. AltaGas brings expertise and a strong infrastructure platform to the table, and we look forward to our collaboration to support our growth in Asia."
This agreement, which AltaGas had previously announced as part of its first quarter 2025 results, represents another positive step in de-risking its global exports operations. The contract diversifies AltaGas' downstream customer base with the addition of BASF, which is an A-rated investment grade counterparty with broad global operations and strong long-term growth plans. BASF joins AltaGas' broad customer base of more than 70 Canadian producers and aggregators and Asian downstream customers that utilize AltaGas' open access export terminals to facilitate the best outcomes for their businesses. The agreement is expected to commence in 2027 and reinforces the strategic value of AltaGas' west coast LPG export platform.
"We are excited to deepen our relationship with BASF and play a key role in helping the company deliver on their long-term growth objectives," said Vern Yu, President and Chief Executive Officer of AltaGas. "This agreement is further recognition of our structural advantage of exporting LPGs to Asia from the North American west coast. The addition of a high-quality counterparty such as BASF further de-risks our export platform, advancing our strategic priorities."
