Vopak, AltaGas to invest in Canadian propane export terminal

May 10, 2017 By    

Royal Vopak and AltaGas Ltd. entered into a joint venture agreement to invest in the development of the Ridley Island Propane Export Terminal.

The terminal is expected to be the first propane export facility off the west coast of Canada, according to the companies. The facility will be designed to ship 1.2 million metric tons of propane per year. Vopak, an independent tank storage company, and AltaGas expect the facility to be commissioned by the first quarter of 2019.

“We are excited to form this joint venture with Vopak and have them as a partner in [the Ridley Island Propane Export Terminal],” says David Harris, president and CEO of AltaGas. “Vopak is a very strategic global tank storage company and brings significant experience in terminals worldwide. We look forward to working with them on [the propane export terminal] as well as considering future opportunities to further build out our joint venture.”

Through the partnership, Vopak plans to take a 30 percent interest in the propane export terminal. Vopak’s investment ties to its long-term strategic focus on the storage and handling of gas, the company says.

“We are very much looking forward to working together with AltaGas in this new partnership,” says Eelco Hoekstra, chairman of the executive board and CEO of Royal Vopak. “Storage and handling of gas is an important strategic focus area for Vopak. We are confident that we have found a strong partner in AltaGas that is a well-respected Canadian company with experience in developing energy projects.”

The terminal is located near Prince Rupert, British Columbia, Canada, on a section of land leased by Ridley Terminals Inc. from the Prince Rupert Port Authority. The site features short shipping distances to markets in Asia, the companies say.

In addition, the site will benefit from railway access and deepwater access to the Pacific Ocean. Propane from British Columbia and Alberta, Canada, will be transported to the facility using 50 to 60 railcars per day through the existing CN rail network, the companies add.

About the Author:

Megan Smalley was an associate editor at LP Gas magazine.

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