Here’s a bold statement: while the world debates the future of energy, one Canadian company is quietly revolutionizing its foothold in Asia’s propane market—and China is at the heart of it. But here’s where it gets controversial: as global trade tensions rise, AltaGas Ltd. is not just surviving but thriving, carving out a significant share of China’s propane imports in less than a year. How? And what does this mean for the future of energy trade? Let’s dive in.
Based in Calgary, AltaGas has swiftly become a key player in China’s propane market, now supplying 6% of the country’s imports. This is no small feat, especially considering the company only began tapping into the Chinese market in April of last year. Before that, its propane exports from Canada’s first export terminal in Prince Rupert, B.C., primarily went to Japan and South Korea. Today, AltaGas also supplies 14% of South Korea’s and 11% of Japan’s liquefied petroleum gas (LPG) imports. And this is the part most people miss: while demand in Japan and South Korea has remained flat, AltaGas’s success in China is driven by the country’s growing residential and industrial needs—a trend that shows no signs of slowing down.
Randy Toone, executive vice-president at AltaGas, highlights the company’s strategic advantage: its shorter shipping distance from B.C. compared to the U.S. Gulf Coast. But it’s not just about logistics. China’s rapid modernization, including the construction of petrochemical facilities, has created a booming demand for propane. As more Chinese households move out of poverty, propane is becoming a go-to fuel for heating and cooking, replacing traditional sources like wood and coal. Here’s the kicker: AltaGas sees this as just the beginning, with projections showing propane and butane imports into Asia growing by 40 to 50% by 2040.
But let’s pause for a moment. What exactly are propane and butane? These gases, categorized as natural gas liquids (NGLs) or liquefied petroleum gases (LPGs), are either separated from natural gas or produced as a byproduct of oil refining. Unlike liquefied natural gas (LNG), which requires extreme cooling to -160°C, propane and butane are much easier to handle—cooled to -40°C and -18°C, respectively. This simplicity makes export facilities less costly and complex, giving AltaGas a competitive edge.
At the Ridley Island Propane Export Terminal in B.C., AltaGas can store 1.2 million tonnes of propane annually and export up to 92,000 barrels per day. The propane is transported by rail, cooled, and loaded onto ships, with Netherlands-based Vopak owning 30% of the project. Adjacent to this terminal, the Ridley Island Energy Export Facility (REEF), a joint venture between AltaGas and Vopak, is set to begin operations in early 2027. REEF will initially export propane and butane, with plans to add other products like methanol in the future. Here’s where it gets even more interesting: last year, AltaGas secured a deal to supply butane from REEF to BASF Intertrade’s petrochemical operations in China, further solidifying its position in the market.
Meanwhile, Canada’s political landscape is shifting. Prime Minister Mark Carney recently declared in Beijing that Canada and China are entering a 'new era of relations,' aiming to set an example of global cooperation. This comes as Ottawa seeks to double non-U.S. exports in response to shifting global trade dynamics under the Trump administration. But here’s the question: can this partnership withstand geopolitical tensions and economic uncertainties? Only time will tell.
Looking ahead, AltaGas is exploring First Nations equity agreements, though these are still in early stages. Additionally, the Alberta government has pledged $14 million to kick-start regulatory work on a new oilsands pipeline to B.C.’s northwest coast, potentially linking to Prince Rupert. Both federal and provincial governments are pushing for Indigenous ownership and private sector leadership in these projects. And this is the part that sparks debate: as energy companies expand, how can they balance growth with environmental and social responsibilities? We’d love to hear your thoughts in the comments.
In a world where energy markets are constantly evolving, AltaGas’s story is one of strategic foresight and adaptability. But as it continues to grow, the company—and the industry at large—faces critical questions about sustainability, partnerships, and global trade. What do you think? Is AltaGas’s approach a model for the future, or are there challenges that need addressing? Let’s start the conversation.
