Vopak and AltaGas Secure FID for Large-Scale LPG and Bulk Liquids Terminal in Canada

Royal Vopak and Canadian energy infrastructure company AltaGas have reached a positive final investment decision (FID) on a large-scale liquefied petroleum gas (LPG) and bulk liquids terminal project on Ridley Island, British Columbia, Canada. This decision follows a comprehensive five-year environmental review and preparation process. The joint venture (JV) has completed all major preliminary steps, including front-end engineering design (FEED) and a detailed Class III capital estimate.

The new facility, named the Ridley Island Energy Export Facility (REEF), will be developed on a 190-acre (77-hectare) site adjacent to the existing Ridley Island Propane Export Terminal (RIPET), managed by the Port of Prince Rupert (PRPA). The JV has secured a long-term lease for the site and obtained the necessary federal and provincial permits to construct storage tanks, a dedicated jetty, rail infrastructure, and other essential components.

REEF, with an estimated gross capital cost of CA$1.35 billion (US$990 million), excluding government incentives, will be developed in phases. Phase 1 will include an initial export capacity of approximately 55,000 barrels per day of LPG, comprising propane and butane, and 600,000 barrels of LPG storage (95,000 cubic meters). Future phases may explore other fuels, such as hydrogen.

The facility aims to expedite the export of LPG, methanol, and other bulk liquids to Asia, benefiting from the shortest shipping time globally—only ten days to Northeast Asia. Major construction activities are scheduled for 2025 and 2026, with select workstreams starting in 2024. The project is anticipated to generate significant economic benefits for local communities in Northwestern B.C., including long-term job creation and community investment, with support agreements in place from First Nations groups.

AltaGas President and CEO Vern Yu stated, "This positive FID enables AltaGas to continue connecting Canadian energy to Asian markets and drive valuable outcomes for all our customers. Canada holds a structural advantage in shipping LPGs to Asia, offering the shortest transit times and the lowest maritime emissions footprint. AltaGas supplies over 19 percent of Japan’s propane and 13 percent of South Korea’s LPG imports, effectively linking our upstream customers with the Asian market. We are eager to collaborate with our partners to enhance long-term value creation through REEF.”

AltaGas is a leading North American infrastructure company dedicated to connecting customers and markets to affordable and reliable energy sources. The company runs a diversified, low-risk, high-growth energy infrastructure business aimed at providing resilient and lasting value for its stakeholders. From wellhead to tidewater, AltaGas’ midstream business prioritizes providing customers with safe and reliable service and connectivity, ensuring optimal outcomes for their businesses. This includes granting global market access for North American LPGs, offering producers and aggregators the best netbacks while enhancing supply diversity and energy security for downstream customers in Asia.