AltaGas Ltd. and Royal Vopak NV have formed a 50-50 joint venture to further evaluate development of the Ridley Island Energy Export Facility (REEF), a large-scale LPG, methanol, and bulk liquids terminal with marine infrastructure on Ridley Island, BC. REEF already has permits to construct storage tanks, a new dedicated jetty, and rail and other ancillary infrastructure.
The terminal would be developed on a 190-acre site administered by the Prince Rupert Port Authority (for which the joint venture has executed a long-term lease) that sits adjacent to AltaGas and Vopak's existing 1.2-million tonne/year (tpy) Ridley Island Propane Export Terminal (RIPET), in operation since April 2019.
AltaGas will be responsible for the terminal’s construction and operation. The company in 2020 received Canadian Energy Regulator approval to export an additional 1.2 million tpy from the Ridley Island site.
REEF is currently working through front-end engineering and design, expected to be completed by late 2023 and followed by a final investment decision (FID). The partners are also solidifying long-term rail agreements in advance of FID.
Should REEF reach positive FID, the terminal will be developed and brought online in phases. AltaGas has executed a long-term commercial agreement with the joint venture for 100% of the capacity for the first phase of LPG volumes. Future phases will be developed as additional long-term commercial agreements and critical milestones are reached.
Port of Prince Rupert provides REEF year-round ice-free operations and has the deepest natural harbor in North America, according to the joint venture, allowing it to accommodate the world's largest vessels. With only 10 shipping days to markets in Northeast Asia, REEF would hold a roughly 60% time savings over the US Gulf Coast and about 45% over the Arabian Gulf. AltaGas noted that it already provides 12% of Japan’s propane and 12% of South Korea’s LPG imports.
