With construction of its Ridley Island Propane Terminal advancing on time and on budget, AltaGas announced last week a major sales agreement with Japanese propane giant, Astomos Energy Corporation.
At an official signing ceremony Aug. 1 at AltaGas headquarters in Calgary, Astomos committed to purchase 50 per cent of the 1.2-million tonnes of liquefied petroleum gas each year from the Ridley Island export terminal, beginning in the first quarter of 2019.
AltaGas chairman David Cornhill said the value of the deal could grow to $500 million per year, singularly boosting Canadian exports to Japan by up to seven per cent, the Financial Post reported.
In a press release, AltaGas called the signing a major step forward for the Ridley Terminal, the first of its kind off Canada’s west coast. The deal comes when Canada is seeking to diversify its energy markets, AltaGas said, providing producers in northeast B.C. new access to premium markets in Asia.
“The advantages of the location of the Terminal are indisputable: a 10-day sail to Japan versus a 25-day sail from the U.S. Gulf Coast, access to Canadian National Railway’s existing rail network and AltaGas’ processing plants; and a world class marine jetty with deep water access to the Pacific Ocean.”
Construction crews are currently pouring the concrete foundation of the terminal’s 45-metre-tall propane tank. The company reported in a newsletter it will require 12 million litres of concrete, and will take shape over the next few months with the final pour scheduled for the end of 2017.
The roof section of the dome will be brought into place by the first quarter of 2018.