TLDR:
- AltaGas and Vopak have made a positive final investment decision on the Ridley Island Energy Export Facility in British Columbia, Canada.
- The facility will be a large-scale LPG and bulk liquids terminal with rail, logistics, and marine infrastructure.
AltaGas Ltd. and Royal Vopak have announced a positive final investment decision (FID) on the Ridley Island Energy Export Facility (REEF) in British Columbia, Canada. The facility, which will be a large-scale liquefied petroleum gas (LPG) and bulk liquids terminal, has completed all major gating items and is expected to come online near the end of 2026. The projected gross capital cost is $1.35 billion, with annual Partnership EBITDA of $185 million – $215 million. The project aims to enhance Canada’s role as a global energy exporter and provide access to premium global markets for LPGs.
The Joint Venture, which includes Indigenous rights holders and local communities, has completed a five-year environmental preparation and review process. Construction activities are planned to take place over 2025 and 2026, with the majority of work being done offsite in controlled operating environments. Vopak and AltaGas plan to fund their ownership through their respective financial capacities with no leverage at the Partnership level.
The project has received support from First Nations agreements and is expected to drive economic benefits to local communities in Northwestern B.C. through construction activities, long-term job creation, and community investment. The facility will operate under exclusive rights granted by the Prince Rupert Port Authority to develop LPG, methanol, and other bulk liquids exports on Ridley Island.
AltaGas, a leading North American infrastructure company, aims to fund its portion of the project using internally generated cash flows and its annual investment capacity. Vopak plans to fund its portion using its strong balance sheet position. The new facility is expected to play a vital role in the energy ecosystem, providing safe, reliable, and affordable energy sources.
