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$450 Million Gas Export Plant to be Built Near Prince Rupert, B.C.
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(Posted on Feb 16, 2017 at 02:00PM by Michelle Bogle)
Last month, AltaGas, an energy infrastructure company with a focus on natural gas, power and regulated utilities, announced that it will be building a $450 million propane export terminal on Ridley Island in British Columbia. The Ridley Export Terminal is expected to be the first propane export facility of its kind on Canada’s west coast.Â
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The site, which is near Prince Rupert on a section of land leased by Ridley Terminals Inc. from the Prince Rupert Port Authority, offers unique advantages in terms of its location – specifically shorter shipping distances to markets in Asia. With its Ridley Island location, AtlaGas expects that shipping times will be reduced to 10 days compared to the 25 days from the U.S. Gulf Coast. The brownfield site also benefits from railway access and deep water access to the Pacific Ocean.Â
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“We are consulting and working with the First Nations whose traditional territory is located within the Ridley Export Terminal,†said David Harris, President and CEO of AltaGas in a press release. “Collaborating closely with First Nations and communities to create sustainable social value is of paramount importance to us and we look forward to a long and mutually beneficial relationship with the First Nations in the region.â€Â
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The Ridley Export Terminal will be designed to ship 1.2 million tonnes of propane per year and is estimated to cost approximately $450 - $500 million.Â
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"The project is a reflection of how we do business in B.C. – balancing environmental protection with economic development, creating opportunities and real partnerships with First Nations, and putting British Columbians first," said Premier Christy Clark in the same release. "This export facility is another promising development for our province, connecting producers in northeast B.C. to markets in Asia."Â
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Based on production from its existing facilities and forecasts from new plants under construction and in active development, AltaGas anticipates having physical volumes equal to approximately 50 percent of the 1.2 million tonnes. The remaining 50 percent is slated to be supplied by producers and aggregators in western Canada. AltaGas expects to underpin at least 40 percent of the Ridley Export Terminal throughput under tolling arrangements with producers and other suppliers.Â
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Construction is expected to begin in early 2017 and to be in service by the first quarter of 2019. The Ridley Export Terminal will support long-term economic stability in the region through the diversification of products at Ridley Terminals, and employment opportunities for area residents and First Nations. It is estimated that 200 to 250 construction workers will be hired during the construction phase and that 40 to 50 permanent jobs will be created once the facility is operational.Â
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The project will also impact the local commercial real estate industry in Prince Rupert and surrounding communities. To learn more, please contact Marcus & Millichap’s Vancouver office to speak with an advisor.
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