Vopak and AltaGas partner to jointly invest in Canada’s Ridley export terminal

Dutch tank storage company Royal Vopak has agreed to enter a joint venture with AltaGas to jointly invest in the development of the Ridley Island Propane Export Terminal (RIPET) off the west coast of Canada.

The propane export facility is expected to transport 1.2 million tonnes of propane per annum, with a storage capacity of approximately 96,000 cubic metres.

With the joint investment, Vopak will own a 30% interest in RIPET and also has additional land rights on Ridley Island.

Royal Vopak executive board chairman and CEO Eelco Hoekstra said: "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."

AltaGas president and CEO David Harris added: "We look forward to working with them on RIPET, as well as considering future opportunities to further build out our joint venture."

Estimated to cost between approximately $450m and $500m, the Ridley Export Terminal will provide more employment opportunities, with 200-250 construction workers expected to be hired during the construction phase and 40-50 permanent jobs created during the operational phase.

Located near Prince Rupert, British Columbia, the RIPET site benefits from a ten-day shipping time compared to 25 days from the US Gulf Coast to markets in Asia.

In addition, the brownfield site has railway access and a marine jetty with deep water access to the Pacific Ocean.

The propane gas can be transported to the RIPET facility from British Columbia and Alberta using 50-60 rail cars a day through the existing Canadian National rail network.    

The facility is expected to be commissioned in the first quarter of 2019.

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Image: The RIPET site has access to the Asian markets with an estimated ten-day shipping time. Photo: courtesy of Koninklijke Vopak.