Canadian energy logistics firm AltaGas said it will make a final investment decision on a proposed LPG export terminal by the end of this year.
AltaGas said Thursday it will go ahead with construction of the plant that would feed the Ridley Island Propane Export Terminal in Prince Rupert, British Columbia. The site has a marine jetty with deep water access to the Pacific Ocean.
AltaGas said it also received approval from Canada’s National Energy Board for the for the $500m terminal. If the final investment decision is approved, it is schedule to commence commercial operations in 2018. The plant would be capable of exporting 1.2 million tonnes of LPG per year.
Very large gas carrier charterer Astomos Energy has already signed a preliminary offtake agreement to load about 600,000 tonnes per year from Ridley Island
Canada has growing LPG production, but producers have no outlets save for the US, which itself faces an LPG surplus. As a result Canadian LPG prices are at steep discounts to US supply.
