The joint venture (JV) of tank storage provider Royal Vopak and Canadian energy infrastructure company AltaGas has reached a positive final investment decision (FID) on the large-scale liquefied petroleum gas (LPG) and bulk liquids terminal with rail, logistics, and marine infrastructure on Ridley Island, British Columbia, Canada.
The FID for the Ridley Island Energy Export Facility (REEF) follows a five-year environmental preparation and review process. The JV has also completed all major gating items, including front-end engineering design (FEED) and a detailed Class III capital estimate.
The facility will be developed on a 190-acre (77-hectare) site adjacent to AltaGas and Vopak’s existing Ridley Island Propane Export Terminal ( RIPET ), on lands administered by the Port of Prince Rupert (PRPA) for which the JV has executed a long-term lease.
REEF has been granted the key federal and provincial permits to construct storage tanks, a new dedicated jetty, rail and other infrastructure required to operate the facility.
The project will facilitate the export of LPG, methanol, and other bulk liquids and will be developed and brought online in phases, with a projected gross capital cost of CA$1.35 billion (US$990 million), excluding governmental incentives and support.
Phase 1 will include approximately 55,000 barrels a day of initial LPG export capacity, including propane and butane, and 600,000 barrels of LPG storage (95,000 cubic meters). In subsequent phases, the JV will have the option to progress evaluation work on other fuels, such as hydrogen.
According to the JV, the facility will have a structural advantage in delivering LPG to Asia with the shortest shipping time globally with only ten shipping days to the fastest-growing demand markets in Northeast Asia.
The bulk of REEF’s construction activities are planned to take place over 2025 and 2026 with select workstreams beginning in 2024, the partners explained.
The project also has First Nations support agreements in place and is expected to drive further economic benefits to local communities in Northwestern B.C. through construction activities, long-term job creation, and community investment focused on delivering positive outcomes for all stakeholders.
“This positive FID enables AltaGas to continue connecting Canadian energy to Asian markets and drive valuable outcomes for all our customers,” said Vern Yu , President and CEO of AltaGas.
“Canada has a structural advantage in delivering LPGs to Asia with the shortest shipping time and lowest maritime emissions footprint. AltaGas delivers more than 19 percent of Japan’s propane and 13 percent of South Korea’s LPG imports, connecting our upstream customers with customers in Asia. We look forward to working with our partners to drive more long-term value creation with REEF.”