Natural gas supply and demand fundamentals and the demand for clean energy have consistently underpinned AltaGas’ strategy. In recent years, the supply and demand fundamentals have been changing. Abundant supply of natural gas in North America, driven by new technology that has improved the economics of unconventional gas plays, has been positive news for North American energy consumers and has led to renewed interest in natural gas as an economically priced, clean‑burning fuel. As a result, the use of natural gas for power generation, household, and commercial and industrial uses has increased substantially, providing significant opportunities across AltaGas’ Gas, Power and Utilities segments to invest in and optimize assets.
AltaGas’ Gas segment serves customers primarily in the Western Canadian Sedimentary Basin and transacts more than 2 Bcf/d of natural gas including natural gas gathering and processing, natural gas liquids (NGL) extraction and separation, transmission, storage and natural gas marketing. The Gas segment also includes an equity investment in Petrogas through AltaGas Idemitsu Joint Venture Limited Partnership.
Gas gathering systems move natural gas from producing wells to processing facilities where impurities and certain hydrocarbon components are removed. The gas is then compressed to meet downstream pipelines’ operating specifications for transportation.
Extraction and separation facilities reprocess natural gas to extract and recover ethane and NGL. AltaGas owns 1.7 Bcf/d of extraction processing capacity and approximately 1.1 Bcf/d of raw field gas processing capacity.
Transmission pipelines deliver natural gas and NGL to distribution systems, end‑users or other downstream pipelines.
AltaGas uses its market knowledge and expertise to create value by buying and reselling natural gas; providing gas transportation, storage and gas marketing for producers; and sourcing gas supply for some of the Corporation’s processing assets.
The Gas segment also includes expansion projects and projects under development.
AltaGas’ Power segment is engaged in the generation and sale of electricity and ancillary services in Western Canada and the United States, all of which are under long‑term contracts with the exception of the Alberta assets and Pomona. AltaGas continues to expand its geographic footprint and to capitalize on the demand for clean energy sources, while increasing earnings, cash flow stability, and predictability.
Power, which includes generation assets located across North America with 1,688 megawatts of gross capacity, all from natural gas and renewable sources, and 20 MW of energy storage, along with an additional 1,253 megawatts of assets under development.
AltaGas owns and operates utility assets that store and deliver natural gas to end‑users in Alberta, British Columbia, Nova Scotia, Michigan and Alaska. AltaGas also owns a one‑third equity interest in Inuvik Gas Ltd. that delivers natural gas to end‑users in Inuvik, Northwest Territories, and a 65 percent interest in Cook Inlet Natural Gas Storage Alaska LLC (CINGSA) in Alaska.
AltaGas’ utility businesses serve over 575,000 customers1 and have a rate base of approximately $1.9 billion. The utilities are underpinned by regulated returns and regulatory regimes that generally provide stable earnings and cash flows. The Utilities segment enhances the diversification of AltaGas’ portfolio of energy infrastructure assets and strengthens the Corporation’s business profile, thus allowing the Corporation to meet its objective of generating superior economic returns by investing in regulated, long‑life assets with stable earnings.
The Utilities segment includes:
- SEMCO Energy Gas Company 2 in Michigan
- ENSTAR Natural Gas Company 2 in Alaska
- AltaGas Utilities Inc. in Alberta
- Pacific Northern Gas Ltd. in British Columbia
- Heritage Gas Limited in Nova Scotia
1 Including transportation and non-regulated business lines.
2 SEMCO Energy Gas Company and ENSTAR Natural Gas Company are divisions of SEMCO Energy, Inc.