BASF AND ALTAGAS SIGN LONG-TERM BUTANE SUPPLY AGREEMENT

BASF AND ALTAGAS SIGN LONG-TERM BUTANE SUPPLY AGREEMENT

ZUG, Switzerland and CALGARY, AB, July 23, 2025 /CNW/ - BASF Intertrade AG ("BASF") and AltaGas Ltd. ("AltaGas") (TSX: ALA) have signed a long-term commercial agreement for supply of butane via AltaGas and Royal Vopak's ("Vopak") (XAMS: VPK) 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.

Agreement Diversifies BASF's Supply and Strengthens its Cracker Feedstock Supply Portfolio

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 marks a significant step in strengthening BASF's global feedstock supply portfolio," says Matthias Dohrn, President Global Procurement at BASF and Chairman of the Supervisory Board of BASF Intertrade AG. "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."

Further De-risk AltaGas' Export Platform

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.

"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 Vern Yu, President and Chief Executive Officer of AltaGas. "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."

About BASF Intertrade 

BASF Intertrade AG is the global trading organization of the BASF Group, specializing in the trade of petroleum, petrochemicals, and related products. Headquartered in Zug, Switzerland, the company also maintains offices in Singapore, Shanghai, and Houston.

About BASF

At BASF, we create chemistry for a sustainable future. Our ambition: We want to be the preferred chemical company to enable our customers' green transformation. We combine economic success with environmental protection and social responsibility. Around 112,000 employees in the BASF Group contribute to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio comprises, as core businesses, the segments Chemicals, Materials, Industrial Solutions, and Nutrition & Care; our standalone businesses are bundled in the segments Surface Technologies and Agricultural Solutions. BASF generated sales of €65.3 billion in 2024. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the United States. Further information at www.basf.com.

About AltaGas

AltaGas is a leading North American infrastructure company that connects customers and markets to affordable and reliable sources of energy. The Company operates a diversified, lower-risk, high-growth Utilities and Midstream business that is focused on delivering resilient and durable value for its stakeholders. From wellhead to tidewater, AltaGas' Midstream business is focused on providing its customers with safe and reliable service and connectivity that facilitates the best outcomes for their businesses. This includes global open-market access for North American LPGs, which provides North American producers and aggregators with the best netbacks for LPGs while delivering diversity of supply and stronger energy security to its downstream customers in Asia.

For more information please contact:

AltaGas: Jon Morrison, Senior Vice President, Corporate Development and Investor Relations (Jon.Morrison@altagas.ca) or Aaron Swanson, Vice President, Investor Relations (Aaron.Swanson@altagas.ca)

BASF: Dagmar Lonien, Head of Communications, Global Procurement (dagmar.lonien@basf.com)

FORWARD-LOOKING INFORMATION 

BASF:
This release contains forward-looking statements. These statements are based oncurrent estimates and projections of the Board of Executive Directors and currently available information. Forward looking statements are not guarantees of the future developments and results outlined therein. These are dependent on a number of factors; they involve various risks and uncertainties; and they are based on assumptions that may not prove to be accurate. BASF does not assume any obligation to update the forward-looking statements contained in this release above and beyond the legal requirements.

AltaGas
This news release contains forward-looking information (forward-looking statements). Wordssuch as "may", "can", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "aim", "seek", "propose", "contemplate", "estimate","focus","strive", "forecast", "expect", "project", "target", "potential", "objective", "continue", "outlook", "vision","opportunity"  and similarexpressions suggestingfuture events or futureperformance, as they relate tothe Corporation or any affiliateof the Corporation, are intendedto identify forward-looking statements.In particular, thisnews release contains forward-lookingstatements with respect to, amongother things, theanticipated benefits ofthe long-term commercial agreement,including, among other things, providing competitive and reliable butane feedstock to BASF, strengthening the link between Canada and Asia, providing shorter lead times and reliable shipping deliveries to Asia and de-risking AltaGas' global export operations; the expected commencement date of butane supply pursuant to the agreement;construction progressand the anticipated in-service date of REEF; and the anticipated benefits of REEF.

These forward-looking statements involve knownand unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements reflect AltaGas' current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, the failure to realize the anticipated benefits of the long-term commercial agreement; changes in market, governmental or regulatory developments, general economic conditions and other factors set out in AltaGas' public disclosure documents.

Many factors could cause AltaGas' actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release as intended, planned, anticipated, believed, sought, proposed, estimated or expected, and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. AltaGas does not intend, and does not assume any obligation, to update these forward-looking statements except as required by law. The forward-looking statements contained in this news release are expressly qualified by these cautionary statements.

Additional information relating to AltaGas, including its quarterly and annualManagement's Discussion and Analysisand Consolidated Financial Statements, AIF, and press releasesareavailable through AltaGas' website at www.altagas.ca orthrough SEDAR+ at www.sedarplus.ca.

SOURCE AltaGas Ltd.