Keyera, AltaGas, CN partner on $240M Alberta rail terminal

Key Takeaways:

• Keyera, AltaGas, and CN are partnering to build the $240 million Alberta Corridor Export Rail Terminal in Fort Saskatchewan to connect local liquefied petroleum gas to West Coast export markets.
• Keyera will own and build the terminal on its own land, spending $100 million beyond its previously stated 2026 growth budget to fund the initial investment.
• The highly scalable terminal is scheduled to start up in mid-2028 with an initial capacity of 45,000 barrels per day using an efficient rail loop design to lower transportation costs.

The Whole Story:

Keyera Corp., AltaGas Ltd. and CN announced Thursday plans to advance the Alberta Corridor Export (ACE) Rail Terminal, a $240 million energy infrastructure project designed to connect liquefied petroleum gas from Alberta’s Industrial Heartland to West Coast export markets.

Keyera will own and construct the terminal on company-owned land in Fort Saskatchewan, supported by long-term commercial arrangements with AltaGas and CN. The project represents an initial investment by Keyera of approximately $240 million, including approximately $100 million incremental to the company’s previously disclosed 2026 growth capital guidance.

The terminal is expected to provide transportation capacity of approximately 45,000 barrels per day of propane and butane upon start-up in mid-2028, aligned with completion of Keyera’s KFS Fractionation III project. The infrastructure uses a unit train capable rail loop design intended to improve loading efficiency, reduce handling requirements and lower transportation costs relative to traditional rail solutions.

“This project reflects our continued focus on strengthening and extending Keyera’s integrated value chain while providing customers with an efficient solution to diversify market access and benefit from growing global LPG demand,” said Dean Setoguchi, President and Chief Executive Officer of Keyera, in a news release.

The terminal will connect to CN’s rail network and AltaGas’ West Coast export platform, providing access to global markets. The infrastructure is highly scalable and will be able to support the transportation of additional energy products from the region as market opportunities evolve.

“The ACE Rail Terminal is strategic, trade-enabling infrastructure that will add efficient and scalable capacity between the Alberta Industrial Heartland and West Coast gateways, particularly the Port of Prince Rupert as key energy export projects approach completion,” said Tracy Robinson, President and Chief Executive Officer of CN, in a news release.

Vern Yu, President and Chief Executive Officer of AltaGas, said the project “represents a meaningful step forward as we continue to strengthen AltaGas’ open-access energy export platform. Leveraging unit train capability enhances operating efficiency and reduces costs, creating greater value for our customers while strengthening the global competitiveness of Canadian energy.”

Construction activities are underway, including land clearing activities.