Energy logistics firm AltaGas said its plans for building an LPG export terminal along the west coast of Canada will go ahead after receiving regulatory clearance and securing land and berthing space for the project
The Ridley Island Propane Export Terminal will provide a short-haul voyage for gas carriers to the major Asian markets.
The terminal, located near Prince Rupert, will provide a 10-day shipping time to Far East markets, rather than the 25-day transit from the US Gulf Coast.
The Ridley Export Terminal will be designed to ship 1.2 million tonnes of LPG per year and is estimated to cost between $400m and $500m.
Japan's largest LPG importer and major charterer Astomos has already signed an offtake agreement to take up to half the production coming from Ridley.
Construction on the project will begin early this year, with completion scheduled for the first quarter of 2019.
AltaGas also owns and operates the Ferndale LPG export terminal in the US state of Washington, which pumps out about 1 million tonnes per year of LPG.
