One of Prince Rupert's leading industrial giants is expressing expressing its "fundamental disagreement" with the Prince Rupert Port Authority.
The issue of concern over what appears to be a disallowance of the Trigon plans to ship LPG out of their existing Ridley Island Facility.
The background to what is now a percolating legal dispute is outlined in a business in Vancouver article from earlier this week that has Trigon CEO Rob Booker calling the Port's efforts a breach of the company's lease terms by failing to provide timely consent to Trigon's plans.
The Port's approach is seemingly tied to exclusivity commitments towards another project, as a result the article notes that Trigon has commenced legal proceedings against the Prince Rupert Port Authority.
The legal decision comes in the wake of the announcement which we noted this morning from VOPAK/AltaGas who earlier this week, announced site clearing plans for their proposed shipment plans. The key element to their plans exclusivity rights for LPG shipments through the Port.
The consequences for Trigon could be strong, we recently outlined how their Berth 2 Beyond Carbon project was to help the terminal shift away from coal shipments which will be banned by the Federal Government and diversify their shipment optons.
Where things seemingly got complicated was the side note that Trigon was considering using the B2B Carbon for LPG shipments.
No details related to the legal proceedings have been released as of yet and neither the Port or Trigon have added to the information flow through their respective websites.
On Friday afternoon the Prince Rupert Port Authority responded to an email request from the NCR for a statement towards the situation, below is that information from Katherine Voigt, Manager of Corporate Communications:
"The Prince Rupert Port Authority (PRPA) is mandated through the Canada Marine Act to manage the federal crown land within its defined jurisdiction, including all properties on Ridley Island, and has the responsibility to provide consent for specific cargoes being moved through or stored on any of its properties.
PRPA has provided time-limited exclusive rights for the export of LPG (liquid petroleum gas) to the Ridley Island Energy Export Facility (REEF), a joint venture between Vopak and AltaGas, that will facilitate the export of LPG, methanol, and other bulk liquids. The REEF project has been in development for multiple years, has concluded federal and provincial regulatory review and permitting processes, and is completing the workstreams necessary to make a final investment decision in the Spring of 2024. The provision of exclusive rights for specific cargoes enables the certainty required to advance large capital projects through long development periods, secure investment in vital trade infrastructure, and fulfill PRPA’s mandate.
PRPA is the landlord of Trigon Pacific Terminals’ (Trigon) leased property on Ridley Island. PRPA has not given Trigon consent to expand its permitted uses on its leased property beyond its current portfolio.
The Port of Prince Rupert is well positioned to advance Canadian energy connectivity with Asia
Pacific markets. PRPA is committed to ensuring Canadian trade is supported through efficient,
sustainable, and integrated development that optimizes port capacity and capabilities."
The background to the dispute is available through this link to the Business in Vancouver story,
Past notes on the Berth 2 Beyond Carbon plans can be explored through our Trigon archive.
Something smells very off here. The PRPA says in the article that “The provision of exclusive rights for specific cargoes enables the certainty required to advance large capital projects”
ReplyDeleteTrigon has already got that certainty and secured funding and wants to get going. But it’s Vopak that hasn’t even made a final investment decision yet.
What gives? If PRPA can approve two container terminals why not 2 LPG terminals? (3 including Watson)
PRPA needs a management review
ReplyDeleteMight say the same about the city.
DeleteNever a good thing to see that our federal government and federal port authority clearly are not on the same page with this at all. hoping it doesn’t cost us income taxpayers big legal fees or a big settlement
DeleteThere’s more to this story. How much money is PRPA receiving from Vopak for the exclusivity?
DeleteHow much less would they stand to gain from Trigon’s proposal?
There is a major conflict between the PRPAs words that they want to “optimize port capacity and capabilities” while simultanesouly rejecting a federally-funded and approved project that maximizes the use of an existing berth.
Delete