AltaGas and Vopak will jointly invest in the development of the Ridley Island propane export terminal.
The facility will be the first propane export facility off the west coast of Canada and it is designed to ship 1.2 million tonnes of propane per annum, with 96,000 m3 of storage capacity. It is expected to be commissioned in the first quarter of 2019.
Vopak will take a 30% interest in the facility. Its investment in the terminal is underpinned by long-term customer contracts and fulfils its strategy of focusing on the storage and handling of gas.
Canada has a structural surplus in gas and natural gas liquids for which Asia is an important market to export these energy products.
The facility site is near Prince Rupert, British Columbia and it has a strategic locational advantage given very short shipping distances to market in Asia of 10 days compared to 25 days from the US Gulf Coast.
Propane from British Columbia and Alberta will be transported to the facility using 50 to 60 rail cars a day through the existing CN rail network.
Eelco Hoekstra, chairman of the executive board and CEO of Vopak, says: ‘We are very much looking forward to working together with AltaGas in this new partnership. Storage and handling of gas is an important strategic focus area for Vopak. We are confident that we have found a strong partner in AltaGas that is a well-respected Canadian company with experience in developing energy projects.’
Separately from the facility, Vopak also has additional land rights on Ridley Island. Both Vopak and AltaGas will explore the potential to expand their relationship on Ridley Island.