With construction well underway and hundreds of thousands of dollars already spent, one might have thought the Ridley Island Energy Export Facility REEF project was a done deal.
Nevertheless, Altagas and Royal Vopak made it official May 29 with a 含羞草研究社減ositive final investment decision.含羞草研究社�
The joint venture now expects the $1.35 billion large-scale liquefied petroleum gas (LPG) and bulk liquids terminal to come online by the end of 2026. A press release stated they anticipate an annual return on that investment of $185 to $215 million (earnings before interest, taxes, depreciation and amortization).
The investment includes $875 million for construction of the facility, plant and LPG storage tanks and $475 million for construction of a new dedicated jetty and extensive rail and logistics infrastructure.
The release also said the project has 含羞草研究社淔irst Nations support agreements in place and will drive further economic benefits to local communities in Northwestern B.C. through construction activities, long-term job creation and community investment focused on delivering positive outcomes for all stakeholders.含羞草研究社�
As of the end of May, the venture said land clearing on the 190-acre site is 95 per cent complete.
含羞草研究社滳anada has a structural advantage in delivering LPGs to Asia with the shortest shipping time and lowest maritime emissions footprint,含羞草研究社� said Vern Yu, president and CEO of AltaGas, adding the company already delivers 19 per cent of Japan含羞草研究社檚 propane and 13 per cent of South Korea含羞草研究社檚 LPG imports.
In a press release May 30, the Prince Rupert Port Authority (PRPA) congratulated the two companies.
含羞草研究社淭his is an incredible milestone for the Port of Prince Rupert as it marks the largest investment in the Port含羞草研究社檚 history, with a capital cost of $1.35 billion,含羞草研究社� said Shaun Stevenson, PRPA president and CEO.
含羞草研究社淭his project solidifies Canada含羞草研究社檚 critical role in the global energy transition and also confirms the Port of Prince Rupert含羞草研究社檚 leading role in enabling and diversifying Canada含羞草研究社檚 trade portfolio.含羞草研究社�
The companies said the exclusive rights to develop LPG, methanol and other bulk liquids exports on Ridley Island granted to them by the port authority were critical to their final investment decision.
含羞草研究社淭he provision of these exclusive rights was important to ensure the certainty needed to advance large capital projects through long and fulsome development periods and ensure developers advance projects with comprehensive environmental and community stewardship,含羞草研究社� the release stated.
Those rights, however, are currently the subject of a lawsuit. Trigon 含羞草研究社� whose existing coal export facility sits right next door to the REEF project on Ridley 含羞草研究社� also wants to develop an LPG export terminal and is advancing plans to do so.
Trigon says the port cannot grant exclusivity because it facilitates a monopoly, which is contrary to the port含羞草研究社檚 responsibilities under the Canada Marine Act.
含羞草研究社淚t is deeply disappointing that the PRPA as a public agency of the Government of Canada continues to try to hide the details of their deal, without putting the best interests of all Canadians first,含羞草研究社� said Rob Booker, Trigon含羞草研究社檚 CEO.
So far Trigon has obtained a court order requiring the PRPA to produce documents related to the exclusivity agreement and resisted an attempt by the port to have the REEF partnership added to the lawsuit.
