AltaGas Ltd. and Royal Vopak have announced a final investment decision on the Ridley Island Energy Export Facility (REEF), a new liquefied petroleum gas (LPG) and bulk liquids terminal planned for Ridley Island, B.C. The facility will integrate extensive rail, logistics, and marine infrastructure.
After a comprehensive five-year environmental review and stakeholder engagement process, including discussions with Indigenous groups and local communities, the project is moving forward. The facility aims to exemplify environmental stewardship within the industry.
Vern Yu, president and CEO of AltaGas, expressed enthusiasm about the project’s potential to enhance connections between Canadian energy suppliers and Asian markets. “Canada has a structural advantage in delivering LPGs to Asia, offering the shortest shipping time and lowest maritime emissions footprint,” Yu said. AltaGas is a major provider of propane and LPG to Japan and South Korea, respectively.
The REEF will be situated on a 190-acre site next to the existing Ridley Island Propane Export Terminal (RIPET), under a long-term lease with the Port of Prince Rupert (PRPA). The project has received all necessary federal and provincial permits to begin construction of storage tanks, a new jetty, rail, and other critical infrastructure.
The facility will handle the export of LPGs, methanol, and other essential bulk liquids. It will be developed in phases, starting with an initial capacity of 55,000 barrels per day of LPG exports. This phased approach aims to match energy export supply with throughput capacity efficiently, minimize local impact, and prolong construction and employment benefits.
Phase 1 of the project will also include 600,000 barrels of LPG storage, a new multi-product jetty, and extensive rail and logistics infrastructure capable of managing dual-sided rail offloading and multi-track congestion management. Over 80% of the capital investments in Phase 1 will benefit future expansions.
AltaGas reported significant contracting progress in its global exports platform in the first quarter of 2024, with negotiations underway to achieve a long-term tolling target. This will enhance the company’s ability to connect Canada’s critical energy products to the fastest-growing markets in Northeast Asia efficiently.
The strategic location of REEF offers significant time savings in shipping to Northeast Asia compared to routes from the U.S. Gulf Coast and the Arabian Gulf, with additional benefits during global shipping disruptions or congestion.
