Feb 7 (Reuters) - Canada-based energy infrastructure

firm AltaGas ( ATGFF ) and pipeline operator Keyera ( KEYUF )

entered into long-term agreements for processing liquefied

petroleum gases (LPGs) on Friday.

Keyera ( KEYUF ) entered a 15-year tolling contract at AltaGas' ( ATGFF ) Ridley

Island Energy Export Facility for 12,500 barrels per day (bpd)

of LPG export capacity.

In turn, AltaGas ( ATGFF ) signed an 18-year agreement for 8,000 bpd

of fractionation capacity at Keyera's ( KEYUF ) natural gas liquids (NGLs)

processing and storage facility in Saskatchewan.

U.S. President Donald Trump imposed and later suspended

tariffs on Canadian goods, including a 10% levy on energy

imports.

As a result, Canadian companies are looking to reduce

dependence on the U.S. by looking towards other markets such as

those in Asia.

AltaGas' ( ATGFF ) Ridley export facility is expected to be

operational by the end of 2026, with the company saying that it

requires only ten shipping days to export to the LPG markets in

Northeast Asia.

The 18-year fractionation contract, which includes

processing of NGLs to be produced at AltaGas' ( ATGFF ) Pipestone II plant

in Alberta, will provide long-term capacity for AltaGas' ( ATGFF )

production in Montney shale.

"These agreements strengthen the long-term growth and

predictability of cash flows for both companies and strengthens

Canada's link into key Asian markets," said Vern Yu, President

and CEO of AltaGas ( ATGFF ).

Tolling is a service contract where one company agrees to

pay a fee or toll to another to process raw materials into

finished product.

Fractionation is used to seperate raw natural gas into

individual substances such as methane, ethane, propane, butane

and natural gasoline.

"We see the announcement as slightly positive for both

companies' share prices, with the arrangements allowing each

party to lever off the other's infrastructure, and underpin

their respective growth projects with long-term contracts for

the projects' capacities," RBC Capital Markets analyst Maurice

Choy said.