Construction on the proposed development would cost towards 500 million dollars and should AltaGas give the final financial go ahead and receive the requirement approvals, first exports from the terminal would come somewhere in 2018.
Once completed, the terminal would be designed to ship up to 1.2 million tonnes of propane per year, with the propane arriving at Ridley from Northeast BC and Alberta by way of the CN Rail network.
"We are very excited about the opportunities presented by the Ridley Island Propane Export Terminal," ... "We anticipate this Facility will be the first to export propane from British Columbia's west coast, opening up new international markets for natural gas producers in Western Canada. We look forward to working closely with First Nations, governments, the community and other stakeholders to bring this project into operation."-- David Cornhill, Chairman and CEO of AltaGa, outlining plans for a propane export terminal at Ridley Island.
As we outlined earlier this month on the blog, with the coal industry suffering setbacks through 2015 and 2016, diversification became part of the future planning for Ridley Terminals. The proposed development of the propane export terminal would fit into that category, with Ridley officials making note of that strategy as part of today's announcement.
"Ridley Terminals is encouraged by this concrete step to diversify products shipped from our facilities while sustaining and creating new jobs in the community," David Kirsop, Chief Operating Officer and President of Ridley Terminals
Those thoughts were echoed by the Prince Rupert Port Authority President and CEO Don Krusel:
"This project aligns with the type of growth and diversification envisioned in the Port's development plan, with the potential to advance Prince Rupert's support of Canadian export industries through our trade gateway,"
|Ridley Terminals could soon play host to a Propane
Export Terminal operated by AltaGas
(photo from Prince Rupert Port Authority Website)
AltaGas has already started the process of engaging and consulting with First Nations, communities, government, and environmental and regulatory authorities, working towards reaching a final investment decision in 2016.
No details as to the number of jobs that will be created both from the construction and then operation of the terminal project were outlined as part of today's announcement.
A Calgary Herald article from today, features the observations from a financial analyst who notes that while the announcement is a good step forward for AltaGas, the project remains subject to regulatory and other approvals and at this time it is difficult to gauge the economics of the project.
If it does go forward it will be the first to export propane from British Columbia's west coast and open up the Prince Rupert Gateway to more exports to Asian and world markets.
The project would also appear to tie in nicely with the recently completed Road, Rail and Utility Corridor project at Ridley.
You can review the full information release from AltaGas here.
More background on the propane terminal proposal can be found on our archive page.
More items related to Ridley Terminals can be found from our Ridley Terminals archive page.
Clarification: Related to the nature of the leasing arrangement provided in our opening paragraph, it should be noted that AltaGas has agreed to sublease the land from Ridley Terminals Incorporated, RTI leases their land from the Prince Rupert Port Authority.