AltaGas Business Model Canvas

Partnership with federal, provincial (10) and territorial (3) agencies in Canada and with state regulators in the U.S. (50 states) underpins rates, permits and safety oversight for AltaGas utility operations. Constructive regulatory relationships support timely recovery of prudent utility investments through cost-of-service or formula rate mechanisms. Municipal collaborations secure right-of-way access, emergency response readiness and enable joint consumer programs advancing energy efficiency and affordability.

Supply agreements, long‑term offtakes and pipeline/rail/port interconnects secure throughput and exports (RIPET online since 2019). Regulatory and municipal partnerships enable permitting and cost recovery. OEMs and digital/cyber vendors improved uptime via 2024 pilots; global LNG trade ~380 Mt in 2024 supports export demand.

Coordinating pipeline, rail and marine shipments of NGLs and propane to domestic and overseas markets, AltaGas synchronizes multimodal flows to feed export slots like the Ridley Island Propane Export Terminal (capacity ~1.2 Mtpa). Scheduling and blending strategies maximize netbacks by optimizing quality and timing against Brent/HH spreads. Terminal operations manage storage, refrigeration and ship-loading with HSE controls. Risk management aligns logistics with price exposures via hedging and contract timing.

Deliver regulated gas delivery, 24/7 emergency response and seasonal load/storage optimization for customers; maintain metering, billing and service continuity. Process and fractionate feedstock, optimize plant utilization and reduce emissions across sites. Coordinate multimodal NGL/propane logistics (Ridley Island export capacity ~1.2 Mtpa) and run capital projects with stage-gate governance.

Engineers, operators and technicians with deep gas and power expertise drive AltaGas operations, supported by formal training, standardized procedures and integrated safety systems that measurably reduce incidents. Operational knowledge yields high uptime and efficient turnaround execution, while a safety-first culture and continuous-improvement programs reinforce performance and reliability across assets.

Regulated utility franchises and rate-base assets deliver stable, regulated returns and community trust.

Midstream infrastructure—processing, storage, fractionation, export terminals and pipelines—provides capacity and market access.

Skilled operations staff, long-term offtake/take-or-pay contracts, and digital control systems (SCADA/AMI/analytics; global AMI >1 billion meters by 2024) sustain reliability and cash-flow visibility.

AltaGas maintains rigorous integrity programs that have driven measurable declines in leaks and incidents and align with Canada’s oil and gas methane reduction target of roughly 40–45% by 2025, while methane mitigation and electrification-ready solutions materially lower scope 1 emissions intensity. Robust compliance and transparent reporting meet investor and regulator expectations through annual sustainability disclosures. Community safety programs and outreach reinforce local awareness and emergency preparedness.

As of 2024 AltaGas delivers regulated gas in BC and Alberta, prioritizing affordability and high reliability. Midstream services link producers to export hubs; take‑or‑pay contracts cover >80% of capacity. Methane reduction aligned to ~40–45% by 2025; modular brownfield expansions enable staged, lower‑CAPEX growth.

In 2024 AltaGas deepened industrial and commercial partnerships by offering tailored supply, interruptible service and efficiency solutions to reduce cost and peak demand exposure. Dedicated contacts handle billing and reliability issues to streamline response times. Custom reporting delivers detailed usage and emissions metrics for compliance and optimization. Multi-year agreements, commonly 3–7 years, lock in collaboration and capital planning.

AltaGas serves ~1.2M customers, backed by CAD 4.7B revenue in 2023, targeting 99.9% reliability with thousands reached annually via low-income and payment assistance. Key account teams manage 3–7 year contracts, SLAs and joint planning; AMI and portals deliver near-real-time usage and outage reporting. In 2024 the company held >100 stakeholder meetings and quarterly emergency drills to maintain readiness.

Electronic bulletin boards and scheduling platforms manage AltaGas flows, with industry EBB adoption exceeding 80% in 2024 to streamline nominations. Real-time updates coordinate capacity and logistics, cutting scheduling conflicts and cycle times by around 30%. Standardized processes reduce errors and reconcilements, while immutable audit trails support regulatory compliance and commercial dispute resolution.

Customer portals, 24/7 IVR/chat and call centers handle billing, service and emergencies; multilingual support expanded in 2024. Commercial teams closed 120+ structured RFPs and multi-year contracts, while site visits cut commissioning time. EBB adoption reached 80% in 2024, reducing scheduling conflicts ~30% and improving audit trails. Regulatory filings and partnerships supported CAD 3.6B 2024 revenue.

Industrial and petrochemical buyers demand firm, specification-grade supply and typically lock long-term contracts—commonly 5–15 year terms—to secure feedstock and hedging against price swings. They also require interruptible options and customized delivery pressures for process reliability. Emissions reduction targets and fuel cost competitiveness (often a top 2 procurement driver) heavily influence contract structure and pricing.

Households in BC and Alberta drive winter-peaking residential demand prioritizing safety, affordability and reliability; ~47% of Canadian homes used natural gas for main heating (StatsCan 2021). Commercial/institutional customers seek reliability and efficiency, favoring consolidated billing. Industrial buyers secure 5–15 year firm contracts for feedstock certainty amid 2024 price volatility. Producers, marketers and international LPG/NGL offtakers value throughput certainty, flexible terms and scheduling precision.

Energy for compression, processing and refrigeration drives fuel and power spend; rail, pipeline tariffs and marine fees add transport costs, while optimization programs reduce shrink and fuel-gas use and contracts hedge volatility; Henry Hub averaged about 2.79 USD/MMBtu in 2024, influencing fuel procurement and hedging decisions.

AltaGas cost structure centers on CAD 650M 2024 capex into pipelines/midstream, recurring O&M for integrity digs and turnarounds, fuel/power tied to market prices (Henry Hub 2024 avg 2.79 USD/MMBtu), and regulatory/compliance, insurance and G&A fixed costs.

Transportation and terminaling fees comprise pipeline tariffs, rail loading, storage and export handling charges, with AltaGas reporting midstream revenue of CAD 1.15 billion in 2024. Capacity reservations (take-or-pay contracts) supply stable, fixed revenue while throughput-based fees scale with volumes, aligning income to market demand. High service reliability and terminal uptime support premium pricing and lower churn, enhancing margin on contracted and spot fees.

AltaGas revenue streams mix regulated distribution (rate‑base with allowed ROE 7–10% in 2024) and midstream fee‑for‑service (2024 midstream adjusted EBITDA CAD 432M; midstream revenue CAD 1.15B), supported by take‑or‑pay/MVCs, CPI escalators and commodity marketing exploiting ~14 Bcf/d export arbitrage. Ancillary fees, storage, terminals and occasional asset recycling add incremental cash.