AltaGas to develop propane export terminal on Canada’s west coast

January 21, 2016 By    

AltaGas Ltd., a Canadian midstream company, signed a sublease and related agreements with Ridley Terminals Inc. to develop, build, own and operate the proposed Ridley Island Propane Export Terminal.

The proposed terminal will be located on Ridley Island near Prince Rupert, British Columbia, Canada, on a portion of the lands leased by Ridley Terminals from Prince Rupert Port Authority. According to AltaGas, the agreements are in their first steps to begin the regulatory and engagement phases of the project.

AltaGas adds the proposed terminal will be designed to ship up to 1.2 million tons of propane per year.

“We anticipate this facility will be the first to export propane from British Columbia’s west coast, opening up new international markets for natural gas producers in western Canada,” says David Cornhill, chairman and CEO of AltaGas, in a press release.

The facility is estimated to cost between $400 and $500 million. AltaGas says it hopes to reach a final investment decision regarding the proposed terminal sometime this year. The company adds commercial operation to start propane exports will likely begin in 2018.

AltaGas is an energy infrastructure business with a focus on natural gas, power and regulated utilities. It owns or has interest in six large natural gas processing facilities in British Columbia and Alberta that produce propane. The company operates a similar propane export facility in Ferndale, Wash.

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