AltaGas Ltd. entered into a non-binding letter of intent (LOI) on Jan. 20, 2017 with a significant Montney producer to construct a 120 mmcf per day deep cut natural gas processing facility and a natural gas liquids (NGL) separation train, capable of processing up to 10,000 bbls per day of NGL mix, and rail terminal. The facilities, which are to be located in another area of the Montney separate from AltaGas's current operations, are expected to have access to the Canadian National Railway Company rail network allowing for the transportation of propane to the Ridley Island Propane Export Terminal which AltaGas declared a positive final investment decision (FID) on earlier this year. Under the terms of the LOI, it is contemplated that the deep cut processing facility will be jointly owned, while the NGL separation train and rail terminal will be fully owned by AltaGas. The deep cut processing facility is expected to cost approximately $100 million-$110 million while the NGL separation train and rail terminal are expected to cost approximately $60 million-$70 million. It is expected that the facilities will be underpinned with long-term take-or-pay and dedication commercial agreements.