BASF and AtlaGas sign long-term butane supply agreement
Published by Ellie Brosnan,
Editorial Assistant
Tanks and Terminals,
REEF is a large scale, open access liquefied petroleum gas (LPG) 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.
Agreement diversifies BASF’s supply and strengthens its cracker feedstock supply portfolio
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,” said Matthias Dohrn, President Global Procurement at BASF and Chairman of the Supervisory Board of BASF. “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.”
Further de-risk AltaGas’ export platform
This agreement, which AltaGas had previously announced as part of its 1Q25 results, represents another positive step in de-risking its global exports operations. The contract diversifies AltaGas’ downstream customer base with the addition of BASF. BASF joins AltaGas' customer base of more than 70 Canadian producers and aggregators and Asian downstream customers that utilise AltaGas' open access export terminals. 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,” commented Vern Yu, President and CEO 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.”
Read the article online at: https://www.tanksterminals.com/terminals/25072025/basf-and-atlagas-sign-long-term-butane-supply-agreement/