The agreement, formally signed on July 23, 2025, underscores a significant step towards supply chain diversification and resilience for BASF, a global chemical giant.
In a strategic move set to reshape global feedstock supply chains, BASF Intertrade AG and AltaGas Ltd. announced a long-term commercial agreement for the supply of butane, commencing in 2027. This landmark partnership will leverage AltaGas and Royal Vopak's Ridley Island Energy Export Facility ("REEF") in British Columbia, Canada, providing BASF with a reliable and competitive source of butane for its expanding production footprint in Asia.
The butane from Western Canada will primarily serve as feedstock for BASF’s growing cracker operations across Asia, a region characterized by rapid demand growth. This direct link between Canada, a major energy producer, and Asia, a fast-growing consumer, is expected to result in shorter lead times and more consistent shipping deliveries, ultimately enhancing BASF's operational efficiency and competitiveness in the Asian market.
Matthias Dohrn, President Global Procurement at BASF and Chairman of the Supervisory Board of BASF Intertrade AG, emphasized the strategic importance of this collaboration. "This agreement marks a significant step in strengthening BASF’s global feedstock supply portfolio," Dohrn stated. "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."
For AltaGas, the agreement represents a crucial step in further de-risking its global export operations. The addition of BASF, an A-rated investment-grade counterparty with extensive global operations and robust long-term growth plans, significantly diversifies AltaGas's downstream customer base. This move strengthens AltaGas's position in the global liquefied petroleum gas (LPG) export market, building on its existing customer base of over 70 Canadian producers and aggregators and various Asian downstream customers who utilize its open-access export terminals.
Vern Yu, President and Chief Executive Officer of AltaGas, highlighted the strategic advantage provided by the agreement. "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 Yu. "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."
The butane supply will be facilitated through the REEF, a large-scale, open-access LPG and bulk liquids terminal currently under construction on Ridley Island, British Columbia. The facility, which boasts comprehensive rail and marine infrastructure, is on track for completion by the end of 2026, with commercial operations for the BASF agreement commencing in 2027.
