Canadian Manufacturing

BC’s REEF project moves forward with $1.35B investment after AltaGas and Vopak approval

by CM Staff   

Exporting & Importing Financing Manufacturing Operations Energy Oil & Gas AltaGas British Columbia Energy finance importing and exporting Manufacturing oil and gas operations REEF Project Royal Vopak


The project is expected to be operational by the end of 2026

CALGARY, PRINCE RUPERT and ROTTERDAM — After five years of environmental preparation, review process and stakeholder discussions, AltaGas and Royal Vopak have announced the final investment decision (FID) to move forward with Ridley Island Energy Export Facility (REEF), a liquefied petroleum gas (LPG) and bulk liquids terminal with rail, logistics and marine infrastructure on Ridley Island, British Columbia.

The companies’ joint venture has completed major milestones, including front-end engineering design (FEED) and a detailed Class III capital estimate. With site clearing work over 95 per cent complete and the necessary permits secured, the project is expected to be operational by the end of 2026. The projected gross capital cost for the joint venture is $1.35 billion, with an anticipated annual Partnership EBITDA of $185 million to $215 million.

To reduce capital cost risk and community impacts, 90 per cent of the equipment, packaging, and pipes will be prefabricated offsite in controlled operating environments. Additionally, the joint venture aims to lock in more than 60 per cent of Phase 1 capital costs through fixed-price, lump-sum contracts before the start of construction. Both Vopak and AltaGas will fund their 50 per cent ownership shares through their respective financial resources without leveraging at the partnership level.

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REEF is expected to enhance connectivity between Canadian and Asia Pacific markets. The facility will provide Canadian producers with access to global markets for LPGs, with only 10 shipping days to Northeast Asia. REEF has support agreements with local First Nations and will bring economic benefits to Northwestern British Columbia through construction activities, long-term job creation, and community investment. The facility will operate under exclusive rights granted by the Prince Rupert Port Authority (PRPA) to develop LPG, methanol, and other bulk liquids exports on Ridley Island.

“This positive FID enables AltaGas to continue connecting Canadian energy to Asian markets and drive valuable outcomes for all our customers,” Vern Yu, president and CEO of AltaGas said. “Canada has a structural advantage in delivering LPGs to Asia with the shortest shipping time and lowest maritime emissions footprint. AltaGas delivers more than 19 per cent of Japan’s propane and 13 per cent of South Korea’s LPG imports, connecting our upstream customers with customers in Asia.”

Dick Richelle, chairman of the executive board and CEO of Royal Vopak said, “Prince Rupert, with the shortest shipping distances between North America and Asia, gives the opportunity to drive progress by increasing the trade between Canada and the Asia Pacific region. The trust and support of local First Nations and communities makes this envisioned terminal a reality.”

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