An international tank storage company has joined up with AltaGas for the propane terminal project on Ridley Island.
Royal Vopak is taking 30 per cent interest in the project, which will be the first propane export terminal on Canada’s west coast.
“Vopak is a very strategic global tank storage company and brings significant experience in terminals worldwide. We look forward to working with them on RIPET (Ridley Island Propane Export Terminal) as well as considering future opportunities to further build out our joint venture,” said David Harris, president and CEO of AltaGas in the press release.
Vopak is based in Rotterdam, Netherlands and operates along major trade routes around the world. The company boasts a 400-year history, operating 67 terminals in 25 countries with a combined storage capacity of 35.7 million cbm. By 2019, when the Ridley Island terminal is expected to be complete, they will add another 2.8 million cbm of stoarge.
“Storage and handling of gas is an important strategic focus area for Vopak. We are confident that we have found a strong partner in AltaGas that is a well-respected Canadian company with experience in developing energy projects,” said Eelco Hoekstra, chairman of the executive board and CEO of Royal Vopak.
AltaGas made its final investment decision in January for the propane export terminal, a project that will ship 1.2 million tonnes of propane per year out of Ridley Island. Work camps for the project, based in Port Edward, were expected to be complete by the spring for an estimated 200-250 workers.
The export facility will receive B.C. and Alberta propane from 50-60 rail cars a day. In the press release, the company said that Ridley Terminal’s land and water rights enables the loading of large gas carriers to access global markets. The location also offers a shorter distance to markets in Asia where it only takes 10-days for shipping as opposed to 25-days from the U.S. Gulf Coast.
“Separate from RIPET, Vopak has additional land rights on Ridley Island. Vopak and AltaGas will explore the potential to expand their relationship on Ridley Island,” the press release stated, suggesting more investment to come.