AltaGas, Vopak reach final decision on energy export facility

AltaGas continues to take steps to connect Canadian LPG to global markets.

The Calgary, Alberta, Canada, company reached a positive final investment decision with Royal Vopak on the Ridley Island Energy Export Facility (REEF), a large-scale LPG and bulk liquids terminal with rail, logistics and marine infrastructure on Ridley Island, British Columbia.

According to AltaGas, REEF will enhance Canada’s role as a growing global energy exporter, strengthen Canadian and Asia Pacific energy connectivity and provide Canadian producers and aggregators with access to the premium global markets for LPGs. Site-clearing work is more than 95 percent complete, the company says, and with the required permits in hand, the project is expected to come online near the end of 2026.

“This [decision] enables AltaGas to continue connecting Canadian energy to Asian markets and drive valuable outcomes for all our customers,” says Vern Yu, president and CEO of the company. “Canada has a structural advantage in delivering LPGs to Asia with the shortest shipping time and lowest maritime emissions footprint. AltaGas delivers more than 19 percent of Japan’s propane and 13 percent of South Korea’s LPG imports, connecting our upstream customers with customers in Asia. We look forward to working with our partners to drive more long-term value creation with REEF.”

In other company news, AltaGas says it is expanding its partnership with Birchcliff Energy, focusing on reducing long-term operating costs and connecting more LPG into premium global markets. Birchcliff is a dividend-paying, intermediate oil and natural gas company based in Calgary, Alberta, with operations focused on the Montney/Doig Resource Play in Alberta.

Featured homepage photo: AltaGas Ltd.