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Researched by Industrial Info Resources (Sugar Land, Texas)--Preconstruction is well under way on what will be the first propane export facility on the west coast of Canada, according to its developers. Located near Prince Rupert, British Columbia, the Ridley Island propane terminal has received a financial shot in the arm via a joint venture agreement between developer AltaGas Limited (TSX:ALA) (Calgary, Alberta) and Royal Vopak N.V. (Netherlands).
AltaGas announced a positive financial investment decision on the $500 million project on January 3. Located on the site of an existing coal jetty, the 40,000-barrel-per-day project will target overseas markets, with a 10-day shipping time to Asia, compared with 25 days from the U.S. Gulf Coast. For more information, see Industrial Info's project report and January 5, 2017, article - AltaGas Gives Final Investment Nod to Canada Propane Terminal.
AltaGas Chief Executive Officer David Harris recently touted the positives of the project, which will ship 1.2 million metric tons per year, with about 96,000 cubic meters of storage capacity. Propane from British Columbia and Alberta will be transported to the facility using 50 to 60 rail cars a day via the existing Canadian National Railway Company (NYSE:CNI) (Montreal, Canada) network.
"The competitive advantage of Ridley Island is that it is a brownfield site with excellent railway access and ample deep water access to the Pacific Ocean," Harris said during the company's first-quarter 2017 earnings presentation. "The extensive land and water rights held by Ridley Terminals through the Prince Rupert Port Authority and the existing world-class marine jetty at the site allows for the access and efficient loading of very large gas carriers, which can reach key global markets without limitations."
He told investment analysts that AltaGas has a "clear runway" on the project schedule, with expectations to begin full-scale construction in the second quarter. Completion is set for 2019.
AltaGas won't have to go it alone on financing the project. Global tank storage company Royal Vopak will take a 30% interest in the project under a joint venture deal announced May 5.
Vopak said in a joint press release with AltaGas that its investment "is underpinned by long-term customer contracts and is fully aligned with Vopak's long-term strategy, where storage and handling of gas [have] been earmarked as one of the strategic focus areas. Canada has a structural surplus in gas and natural gas liquids, for which Asia is an important market to export these energy products."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
AltaGas announced a positive financial investment decision on the $500 million project on January 3. Located on the site of an existing coal jetty, the 40,000-barrel-per-day project will target overseas markets, with a 10-day shipping time to Asia, compared with 25 days from the U.S. Gulf Coast. For more information, see Industrial Info's project report and January 5, 2017, article - AltaGas Gives Final Investment Nod to Canada Propane Terminal.
AltaGas Chief Executive Officer David Harris recently touted the positives of the project, which will ship 1.2 million metric tons per year, with about 96,000 cubic meters of storage capacity. Propane from British Columbia and Alberta will be transported to the facility using 50 to 60 rail cars a day via the existing Canadian National Railway Company (NYSE:CNI) (Montreal, Canada) network.
"The competitive advantage of Ridley Island is that it is a brownfield site with excellent railway access and ample deep water access to the Pacific Ocean," Harris said during the company's first-quarter 2017 earnings presentation. "The extensive land and water rights held by Ridley Terminals through the Prince Rupert Port Authority and the existing world-class marine jetty at the site allows for the access and efficient loading of very large gas carriers, which can reach key global markets without limitations."
He told investment analysts that AltaGas has a "clear runway" on the project schedule, with expectations to begin full-scale construction in the second quarter. Completion is set for 2019.
AltaGas won't have to go it alone on financing the project. Global tank storage company Royal Vopak will take a 30% interest in the project under a joint venture deal announced May 5.
Vopak said in a joint press release with AltaGas that its investment "is underpinned by long-term customer contracts and is fully aligned with Vopak's long-term strategy, where storage and handling of gas [have] been earmarked as one of the strategic focus areas. Canada has a structural surplus in gas and natural gas liquids, for which Asia is an important market to export these energy products."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
