AltaGas Inks 5-Year Deal at Key Propane Hub, Ending 28-Day Strike

CALGARY, AB – December 29, 2025 – AltaGas Ltd. has secured a new five-year labor agreement with its unionized workforce at the Ridley Island Propane Export Terminal (RIPET), bringing an end to a 28-day strike that tested the resilience of one of Canada's most critical energy export facilities. The agreement with the International Longshore and Warehouse Union (ILWU) Local 523B was fully ratified, allowing employees to return to work on Christmas Day.

The resolution brings a welcome period of stability to the facility, which plays a pivotal role in connecting Canadian propane with burgeoning Asian markets. Throughout the labor disruption, which began on November 27, AltaGas maintained that export operations continued unabated, a feat it accomplished by deploying management personnel to perform the duties of striking workers.

The Path to Resolution

The dispute, which saw workers on the picket line for nearly a month, stemmed from several key grievances brought forward by ILWU Local 523B. While the company remained committed to achieving a fair agreement, union members voiced significant concerns that went beyond simple wage negotiations. Central to their demands were calls for fair wages comparable to industry standards and improved work-life balance, with reports of employees feeling pressured into working excessive overtime.

However, a major point of contention revolved around workplace safety. The union raised alarms over what it described as company attempts to alter the established "minimum safe manning plan." This plan dictates staffing levels required for safely conducting propane transfers. Workers argued that proposed reductions in crew size from five to three, without a corresponding decrease in transfer volume, would compromise safety protocols and could increase the risk of injury. The union's stance emphasized a desire not only for better compensation but also for a more respectful workplace where their safety and contributions were properly valued.

The newly ratified five-year contract is seen by industry observers as a crucial step toward rebuilding trust and ensuring long-term labor peace. While specific terms of the deal have not been publicly disclosed, the long duration of the agreement provides what analysts call "significant operational certainty" for RIPET, its customers, and Canadian propane producers who rely on the terminal.

A Test of Operational Resilience

While negotiations were ongoing, AltaGas activated a comprehensive contingency plan to prevent any disruption to its export schedule. The company utilized an "alternative workforce" composed of its operational leadership and management staff to keep the propane flowing. This strategy proved remarkably effective, as AltaGas successfully maintained what it described as "materially consistent export operations" throughout the 28-day strike.

In a statement, the company confirmed it continued to provide "safe, reliable service while meeting the needs of its more than 70 export customers." This operational continuity was critical, as any halt in shipments could have had cascading effects on global supply chains and damaged Canada's reputation. AltaGas reported that it expected minimal financial impact from the strike, even reaffirming its full-year 2025 financial guidance and announcing a dividend increase in December, signaling strong confidence in its operational and financial standing.

The company’s ability to sustain operations for an extended period without its unionized workforce highlights a robust level of crisis management and contingency planning. This demonstration of resilience sent a powerful message to investors and international partners about the reliability of the infrastructure. However, the strategy was not without its critics, as union representatives questioned whether the temporary workforce possessed the same extensive training and experience as the dedicated union employees, particularly concerning the complex safety procedures involved in handling volatile materials.

RIPET’s Crucial Role in Global Energy

The labor dispute and its resolution cast a spotlight on RIPET's strategic importance to both the Canadian economy and global energy security. Commissioned in 2019 as Canada’s first propane export terminal on the West Coast, RIPET is a cornerstone of the nation's energy export strategy. With an export capacity that has expanded to 92,000 barrels per day, the terminal is the largest of its kind in the country.

Its geographical location is a key competitive advantage. Offering a shipping route of just 10-11 days to key Asian markets, RIPET provides a much faster and more economical alternative to the 25-day-plus journey from the U.S. Gulf Coast, which also requires navigating the often-congested Panama Canal. This advantage has been instrumental in the growth of Canadian propane exports, with over 40% of the country's total propane exports now flowing to Asia to meet rising demand for petrochemical feedstocks.

By providing a direct link to high-value markets in Japan, South Korea, and increasingly China, RIPET allows Canadian producers, primarily from Alberta, to achieve stronger pricing and diversify their customer base. The terminal's uninterrupted service during the strike was therefore vital. As AltaGas noted, sustaining ratable service "reinforced key trade relationships and upheld Canada's reputation as a reliable, long-term energy supplier to meet the region's growing demand."

Securing a Stable Future

The successful negotiation of a long-term agreement does more than just end a local labor dispute; it shores up a critical artery in Canada's international trade infrastructure. The resolution ensures that Canadian propane can continue to reliably reach Asia, supporting energy security and diversification for trading partners who depend on a steady supply for their industrial needs.

For AltaGas, the five-year deal provides a stable foundation for future operations and growth. For the union, it represents a new chapter after a period of significant tension. For Canadian producers and international customers, it removes a cloud of uncertainty that had been gathering over the West Coast export route. By navigating a challenging labor disruption without interrupting its core mission, AltaGas has underscored the resilience of its operations, while the subsequent long-term agreement signals a renewed commitment to the collaborative stakeholder relationships necessary for success in the global energy market. The agreement signals a period of stability, securing a vital link in the energy supply chain between Canada and its key trading partners in Asia.