AltaGas opens first marine export facility in Canada

June 7, 2019 By    

AltaGas Ltd. opened its Ridley Island Propane Export Terminal (RIPET) – the first marine export facility for propane in Canada – and sent its first shipment.

The Ridley Island Propane Export Terminal. Photo courtesy of AltaGas

The Ridley Island Propane Export Terminal. Photo courtesy of AltaGas

Located in Prince Rupert, British Columbia, the facility began introducing propane feedstock in mid-April, and the first shipment departed the terminal on May 23, 2019, bound for Asia.

“The completion of this game-changing project and the shipment of our first cargo are historic milestones for AltaGas, as well as for our project partners, customers, local Indigenous Peoples, surrounding communities and Western Canada’s upstream energy sector,” says Randy Crawford, president and CEO of AltaGas. “With RIPET now operational, we can offer producers a uniquely complete solution for their propane, providing premium netbacks and market optionality, while also positioning AltaGas to profitably grow our midstream footprint – a true win-win for AltaGas and our customers.”

AltaGas says RIPET allows the company to leverage its assets along the energy value chain in western Canada – from gas gathering and processing to liquids handling, fractionation and export – by attracting increasing volumes and enhancing throughput. The company says the facility adds to its ability to provide access to overseas markets because of a growing demand for cleaner fuels. The company says it anticipates the facility to be a “significant catalyst” for further growth within AltaGas’ Midstream business.

In 2017, AltaGas entered a multi-year agreement with Astomos Energy Corp., a Japanese propane importer and distributor, to purchase at least 50 percent of the propane shipped from RIPET annually, the company explains.

The facility provides a location advantage, the company says, with a 10-day shipping time to Asia from Canada’s west coast. The company expects RIPET to ship about 1.2 million tons of propane annually to customers in Asia.

“The ability to import Canadian propane is a significant advantage for Japan, as it provides greater energy security and supply diversification, while also enabling Canada to maximize the value of its natural resources,” says Seiya Araki, president of Astomos Energy.

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About the Author:

Joe McCarthy was an associate editor at LP Gas Magazine.

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