BASF Intertrade AG (BASF) and AltaGas Ltd. (AltaGas) have signed a long-term commercial agreement for supply of butane via AltaGas and Royal Vopak’s Ridley Island Energy Export Facility (REEF) 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 2026 year-end. 

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, 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.