Wednesday, January 4, 2017

AltaGas gives go-ahead to near 500 million dollar Ridley project

All systems are go for development
of a Propane Export Terminal at
Ridley Island this year

(from the AltaGas website)
2017 has started out with some good news from the Economic Development files, with Alberta based AltaGas announcing that it has approved a Final Investment Decision for their Ridley Island Propane Export Terminal at Ridley Island.

The decision puts in motion plans to create Canada's First West Coast Propane Export Terminal, a facility which will receive propane by rail and is expected to ship 1.2 million tonnes of the product per year.

Construction of the project is expected to begin early this year, though no official timeline was outlined by AltaGas officials as part of their information statement of Tuesday.

During the construction phase, close to 250 construction workers will be hired to complete the shipment facility, with 40 to 50 jobs created to operate the facility once it is operational sometime in the first three months of 2019.

The company also outlined that as their plans move forward the Ridley Export Terminal will provide enduring community benefits along with employment and contracting opportunities during both construction and operations phases.

AltaGas noted the considerable reduction in shipping time from Prince Rupert to Asia as one area where the North Coast facility will have a strategic advantage over competing facilities on the American Gulf Coast.

David Harris, the President and CEO of AltaGas provided a snap shot of how the Prince Rupert terminal will help to deliver on the company's vision for export opportunities.

"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 B.C. infrastructure, once the Ridley Export Terminal is built and operating, we will give producers new access to premium Asian markets for their propane."

Mr. Harris also outlined some of the nature of community engagement with area both First Nations and local communities that was part of the decision making process.

"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."

The Ridley Export Terminal will also benefit from the network of propane producers that AltaGas has developed on its own as well as its access to other producers across Western Canada, a supply system that found some favour with overseas market participants.

Key to their Final Investment planning was the ability to secure a multi-year contract with the Japanese firm Astomos one of the largest LPG players in the world, the arrangement between AltaGas and the Tokyo based company provides an entry point into the Asian marketplace for the Alberta propane producer.

The Ridley Island Propane Export Terminal will begin construction
in the early part of this year on a parcel of land at the south end of Ridley Island
 (from the AltaGas website)

Tuesday's Final Investment Decision comes after AltaGas had received approval from federal regulators. The site for the development will take place on a section of land leased by Ridley Terminals Incorporated, from the Prince Rupert Port Authority.

The pace has been fairly quick from concept to Final Investment Decision, the proposed development first appeared on the local radar last year, with the company hosting a pair of Open Houses to explain their plans both for the terminal and as corporate citizens on the North Coast.

The full announcement of Tuesday's decision can be examined here, a review of their development can be found from the Ridley Terminal Export Terminal page of the AltaGas website which you can explore here.

You can find more items on Tuesday's announcement from our archive page here, the path towards the Final Investment Decision took place in 2016 our archive of AltaGas items from last year can be found here.

No comments:

Post a Comment