Port of Prince Rupert adds HDZEV trucks
NewsNew zero and low-emission trucks will be added at the Port of Prince Rupert to reduce greenhouse gas emissions and support transportation sustainability.
AltaGas, Vopak announce positive FID on REEF
AltaGas and Vopak have announced a positive FID on the Ridley Island Energy Export Facility, marking the largest investment in the Port of Prince Rupert’s history.
AltaGas and Vopak have announced a positive final investment decision (FID) on the Ridley Island Energy Export Facility (REEF), a large-scale liquefied petroleum gas (LPG) and bulk liquids terminal with rail, logistics and marine infrastructure on Ridley Island, British Columbia, Canada.
Following a five-year environmental preparation and review process, and extensive engagement with multiple stakeholders including Indigenous rights holders and local communities, the AltaGas-Vopak Joint Venture is set to deliver an export facility that will operate with environmental stewardship.
This marks the largest investment in the Port of Prince Rupert’s history.
The projected gross capital cost of C$1.35 billion, excluding governmental incentives and support, and annual Partnership EBITDA of C$185 million – C$215 million are in line with the Joint Venture’s expectations. Vopak and AltaGas are expected to fund their pro-rata 50% ownership through each organisation’s respective financial capacity with no leverage at the Partnership level.
The capital cost breakdown of Phase 1 includes approximately C$875 million for the construction of the facility, the balance of the plant and LPG storage tanks and C$475 million for the construction of the new dedicated jetty and extensive rail and logistics infrastructure. The infrastructure includes additional redundancies to provide operational flexibility that benefits the Joint Venture and customers over the long term.
The bulk of REEF’s construction activities are planned to take place over 2025 and 2026 with select workstreams beginning in 2024. This includes plans for the Partners to incur approximately C$200 million of incremental gross capital expenditures in 2024.
Project overview
REEF will be developed on a 190-acre (77-hectare) site adjacent to AltaGas and Vopak’s existing Ridley Island Propane Export Terminal (RIPET), on lands administered by the Port of Prince Rupert (PRPA) for which the Joint Venture has executed a long-term lease. REEF has been granted the key Federal and Provincial permits to construct storage tanks, a new dedicated jetty, rail and other infrastructure required to operate the facility.
The project will have the capability to facilitate the export of LPG, methanol and other bulk liquids that are vital for everyday life.
Phase 1 will include approximately 55,000 barrels a day of initial LPG export capacity, including propane and butane, 600,000 barrels of LPG storage (95 thousand cbm equivalent), a new dedicated multi-product jetty, and extensive rail and logistics infrastructure. The infrastructure will include 10 dual-sided rail offloading slots and 25 kilometres of multi-track infrastructure that is unit-train capable and will provide flexibility to overcome congestion and outages. More than 80% of Phase 1 capital investments will be able to be leveraged in future REEF phases, providing capital-efficient buildout of subsequent expansions.
In subsequent phases, the Joint Venture will have the option to progress evaluation work on fuels of the future, such as hydrogen, which has growing customer interest in Asia, particularly Japan and South Korea.
With only 10 shipping days to the fastest-growing demand markets in Northeast Asia, REEF will be able to efficiently connect Canada’s energy products to the world. This includes having an approximate 60% base time savings over the U.S. Gulf Coast, which requires a minimum 25-day shipping time to Northeast Asia, and approximately 45% base time savings over the Arabian Gulf, which requires a minimum 18-day shipping time. This geographic advantage expands when there is significant congestion in the Panama Canal, as has recently been experienced or when other global shipping pinch points experience disruptions.
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