AltaGas Ltd. (AltaGas) has announced that it has reached a positive Final Investment Decision (FID) on its Ridley Island Propane Export Terminal (the Ridley Export Terminal), having received approval from federal regulators. AltaGas has executed long term agreements securing land tenure along with rail and marine infrastructure on Ridley Island, and will proceed with the construction, ownership and operation of the Ridley Export Terminal.
The Ridley Export Terminal is expected to be the first propane export facility on Canada's west coast. The site is near Prince Rupert, British Columbia, on a section of land leased by Ridley Terminals Inc. from the Prince Rupert Port Authority. The locational advantage is very short shipping distances to markets in Asia, notably a 10 day shipping time compared to 25 days from the US Gulf Coast. The brownfield site also benefits from excellent railway access and a world class marine jetty with deep water access to the Pacific Ocean.
"We are consulting and working with the First Nations whose traditional territory the Ridley Export Terminal is located within," said David Harris, President and CEO of AltaGas. "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."
"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. "This export facility is another promising development for our province, connecting producers in northeast B.C. to markets in Asia."
The Ridley Export Terminal will be designed to ship 1.2 million tpy of propane and is estimated to cost approximately CAN$450 - $500 million. Along with FID, AltaGas will be offering a third party the option to take an equity position of up to 30% in the Ridley Export Terminal.
"Propane exports off of Canada's west coast pulls together our vision of offering Canadian producers a complete energy value chain," said Harris. "Together with our northeast B.C. infrastructure, once the Ridley Export Terminal is built and operating, we will give producers new access to premium Asian markets for their propane."
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% of the 1.2 million t. The remaining 50%t is slated to be supplied by producers and aggregators in western Canada. AltaGas expects to underpin at least 40% of the Ridley Export Terminal throughput under tolling arrangements with producers and other suppliers.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/05012017/altagas-reaches-positive-fid-on-export-terminal/