Dutch group Vopak and Toronto-listed AltaGas are teaming up to establish a new large-scale LPG and bulk liquids export terminal in Canada.
The 50/50-owned company will evaluate development of the Ridley Island Energy Export Facility (REEF).
The plan is to ship out LPG, methanol and other cargoes, providing another source of demand for LPG carrier and tanker owners.
REEF has been granted key federal and provincial permits to construct storage tanks, a new dedicated jetty, and rail and other ancillary infrastructure.
It will use a 190-acre site on lands administered by the Prince Rupert Port Authority through a long-term lease.
This is next to the two companies’ propane export terminal, which has been operational since 2019.
AltaGas has signed a long-term commercial agreement with the joint venture for 100% of the capacity for the first phase of LPG volumes.
The companies said vessels can reach the fastest growing markets in north-east Asia in 10 days from the port.
This gives it a 60% time saving over shipments from the US Gulf and 45% over the Middle East.
Vopak and AltaGas said the facility will be able to accommodate the world’s largest vessels.
Development activities are expected to be completed by late 2023, followed by a final investment decision.
Dick Richelle, chief executive of Vopak, said: “Our goal is to create together with partners high quality critical infrastructure for vital products.”
“The strategic location of Prince Rupert, with the shortest shipping distances between North America and Asia, has the potential to increase the trade between Canada and the Asia Pacific region.”
