AltaGas and Royal Vopak Approve $110 Million Propane Export Project

The joint-venture infrastructure initiative at Prince Rupert’s port has reached a major milestone. On October 30, 2023, both AltaGas and Royal Vopak announced their third-quarter financial results alongside a positive Final Investment Decision (FID) for the Ridley Island Energy Export Facility (REEF) Optimization One project. This decision confirms the project’s economic viability and sets the stage for expanded energy export capabilities.

The Optimization One project aims to enhance REEF’s Phase One throughput capacity by an additional 25,000 barrels per day of liquefied petroleum gas (propane) and other bulk liquids. The total gross capital cost for this initiative is approximately $110 million, with operations expected to commence by mid-2027. This development is part of a broader strategy to facilitate the delivery of cleaner energy products to Asian markets.

“This is an exciting and timely announcement on the heels of Prime Minister Carney’s pledge to double Canada’s non-U.S. exports over the next decade,” said Taylor Tebbutt, a communications specialist at AltaGas. This statement underscores the significance of the project within the context of Canada’s energy export ambitions.

Future Developments and Expansion Plans

In addition to Optimization One, AltaGas and Vopak are currently advancing plans for the REEF Optimization Two project. This second phase is undergoing engineering, permitting, and stakeholder engagement processes, with the potential to accommodate up to an additional 60,000 barrels per day. According to Tebbutt, this expansion could further solidify Canada’s standing as a reliable global energy supplier.

The REEF project aligns with the increasing global demand for cleaner energy solutions. By improving infrastructure and capacity, both companies aim to position Canada as a key player in the international energy market, particularly in serving the growing needs of Asian economies.

As the project progresses, stakeholders and the local community will be closely observing the developments. The successful implementation of these projects could have significant implications for regional economic growth and environmental sustainability in energy production.