AltaGas has announced a major sales agreement with Japanese propane gas giant Astomos Energy Corporation, the Financial Post reported on August 1.

Astomos will purchase 40 percent of the 1.2 million tonnes of liquefied petroleum gas each year from the Ridley Island export terminal.

According to AltaGas Chairman David Cornhill, the value of the deal could grow to $500 million Cdn per annum, boosting Canadian exports to Japan by up to seven percent.

Construction will commence in 2017 and the terminal is expected to be in service by the first quarter of 2019.