News

AltaGas closes $46 million Edmonton Ethane Extraction Plant acquisition and becomes operator

August 25, 2004


CALGARY--(CCNMatthews - Aug. 25) - AltaGas Income Trust (AltaGas or the 
Trust) (TSX:ALA.UN) announced today that it has closed the acquisition of a 
48 2/3 percent interest in the Edmonton Ethane Extraction Plant (EEEP) from 
BP Canada Energy Resources Company ("BP"). The effective date of the 
acquisition is January 1, 2004. After adjusting for the economic benefit from 
the effective date to closing, the purchase price paid by AltaGas for the 
facility was approximately $42.5 million. In connection with the acquisition 
AltaGas has employed BP's employees at EEEP and will immediately assume 
operatorship of the plant.

EEEP straddles the ATCO Gas and Pipelines Ltd. system which transports 
natural gas into the City of Edmonton and the Ft. Saskatchewan area. A long 
term gas supply contract provides a secure feedstock supply to EEEP. EEEP is 
directly connected to the Alberta Ethane Gathering System, and to BP's Co-Ed 
NGL pipeline, providing safe and reliable outlets for the plant's products.

The plant has a licensed gross inlet capacity of 390 Mmcf/d of natural gas 
and gross natural gas liquids (NGLs) production of approximately 15,000 
Bbls/d of specification ethane and 6,000 Bbls/d of propane-plus product. 
AltaGas' share of the plant's products will be sold under long term 
contracts. The addition of EEEP will increase AltaGas' total net inlet 
extraction capacity to 539 Mmcf/d and total ethane and NGLs production to 
approximately 19,500 Bbls/d.

David Cornhill, Chairman and Chief Executive Officer said, "We now have 
ownership interests in four of the nine deep cut extraction plants in 
Alberta. With the addition of EEEP, we expect our extraction business annual 
operating margin will grow to be in the range of our natural gas distribution 
and transmission businesses." Mr Cornhill added, "We are excited by the 
opportunities presented as operator of the EEEP facility and by the addition 
of the EEEP employees. The expertise of the EEEP employees combined with the 
expertise of our existing 500 plus employees strengthens our position as a 
full midstream service provider and better positions us to capture 
opportunities."

AltaGas moves energy from its source to the end user, adding value through 
the process. The Trust has consolidated assets totalling over $950 million 
and a market capitalization of approximately $1 billion. Its steadily 
expanding asset base today includes natural gas gathering and processing 
facilities, interests in ethane and natural gas liquids extraction plants, 
and transmission pipelines. AltaGas distributes natural gas to Alberta 
customers through AltaGas Utilities Inc., to customers in the Northwest 
Territories through the Ikhil Gas Project and distributes gas in Nova Scotia 
through its interest in Heritage Gas Limited. The Trust provides energy 
services to customers, including marketing of natural gas and natural gas 
liquids and sale of power from its power purchase based arrangements.

AltaGas' Trust Units are listed on the Toronto Stock Exchange under the 
symbol ALA.UN. The Trust is included in the S&P/TSX Capped Income Trust Index 
and the S&P/TSX Capped Energy Trust Index.

When used in this press release, the words "anticipate," "estimate," and 
similar expressions are intended to identify forward looking statements. Such 
statements are subject to certain risks, uncertainties and assumptions that 
could cause actual results to differ materially from those contemplated in 
the forward looking statements. These risks and uncertainties include 
operating performance, regulatory and environmental issues, weather and 
economic conditions, competition and financing availability. For additional 
information on these and other factors see the reports filed by AltaGas with 
Canadian securities regulators. AltaGas disclaims any intention or obligation 
to update or revise any forward looking information whether as a result of 
new information or future event.

 


Media:
Dennis Dawson
(403) 691-7534
Email: dennis_dawson@altagas.ca


or


Investment Community:
Marilyn Pfaefflin
(403) 691-7540
Email: marilyn_pfaefflin@altagas.ca
Website: www.altagas.ca