AltaGas makes final investment decision for propane export terminal in Canada
AltaGas has made a final investment decision (FID) on the Ridley Island Propane Export Terminal in Canada, after receiving an approval from the federal authorities.
The Ridley Export Terminal is expected to have a capacity to ship about 1.2million tonnes of propane annually and it will be with an estimated cost of about $450-$500m.
The company will also be offering a third party an option to buy a stake of up to 30% in the export terminal.
For the project, the company has entered into long-term agreements to secured land tenure along with rail and marine infrastructure on the island.
AltaGas president and CEO David Harris said: "Propane exports off of Canada's west coast pulls together our vision of offering Canadian producers a complete energy value chain.
"Together with our northeast BC infrastructure, once the Ridley Export Terminal is built and operating, we will give producers new access to premium Asian markets for their propane."
AltaGas said that it will go ahead with the construction, ownership and operation of the Ridley Export Terminal.
Construction of the terminal is expected to start in early 2017 and it is expected to be in service by the first quarter of 2019.
The Ridley Export Terminal is expected to be the first propane export facility on Canadian west coast. According to AltaGas, the location is advantageous for exporting the fuel to Asian markets, which takes not more than 10 days, as compared to the 25-day trip from the US gulf coast.
Harris said: "We are consulting and working with the First Nations whose traditional territory the Ridley Export Terminal is located within.
"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."