(EnergyAsia, October 28 2013, Monday) — Japan’s Idemitsu Kosan Co Ltd is advancing plans to develop and export natural gas from Canada with its proposed acquisition of a stake in a privately held midstream company based in Alberta province’s Calgary city.

AltaGas Idemitsu Joint Venture Limited Partnership (AIJVLP), Idemitsu’s equal joint venture with Canada’s AltaGas, will pay a total of C$880 million to acquire a two-third stake in Petrogas Energy Corp, with the deal scheduled for completion in the first quarter of 2014. (US$1=C$1.05).

The joint venture’s acquisition will include the 25% stake that AltaGas bought from Petrogas owner Stan Owerko for an undisclosed sum and about US$100 million worth of shares.

The joint venture, which was established in January 2013, plans to combine Idemitsu’s marketing network in Asia, AltaGas’s LPG production facilities and Petrogas’s midstream assets to support the export of LNG and LPG from Canada to Asia from 2016.

Canada’s TD Securities Inc acted as the exclusive financial advisor to AIJVLP.

Established in 1986, Petrogas owns and operates storage and terminal facilities to hold and distribute natural gas liquids (NGL), liquefied natural gas (LPG) and crude oil in western Canada and the US. Its assets include a logistics network of over 1,500 rail cars and 24 rail and truck terminals.

Idemitsu, a major producer and supplier of petroleum, lubricants and petrochemical products and services in Japan, owns four refineries with a combined capacity of 640,000 b/d, processes one million tonnes of ethylene per year and is a 51% owner of Astomos Energy Corporation, one of the world’s largest shippers and marketers of LPG.

AltaGas describes itself is an energy infrastructure company with a focus on natural gas, power and regulated utilities.