Royal Vopak and AltaGas Ltd. (AltaGas) announced that they have entered into a joint venture to invest together in the development of the Ridley Island Propane Export Terminal (RIPET). RIPET is expected to be the first propane export facility off the west coast of Canada.
According to Vopak’s statement, the project is to be designed to ship 1.2 million tonnes of propane per annum, with approximately 96,000 cubic meters of storage capacity. The facility is expected to be commissioned in Q1 2019.
Under the agreement, Vopak will take a 30 percent interest in RIPET. Canada has a structural surplus in gas and natural gas liquids, for which Asia is an important market to export these energy products.
Propane from British Columbia and Alberta will be transported to the facility using 50-60 rail cars a day through the existing CN rail network. The extensive land and water rights held by RTI and its marine jetty enables the efficient loading of Very Large Gas Carriers that can access key global markets.
The RIPET site is near Prince Rupert, British Columbia, on a section of land leased by Ridley Terminals Inc. (RTI) from the Prince Rupert Port Authority, which gives it a locational advantage, given very short shipping distances to markets in Asia. The brownfield site also benefits from railway access and ample deep water access to the Pacific Ocean, which is ice-free year round.
The two companies will also explore the potential to expand their relationship on Ridley Island, where Vopak has additional land rights.
