Energy liquids export terminal. (Source: Shutterstock)
Calgary, Alberta-based AltaGas Ltd. and the Netherland’s Royal Vopak announced a positive final investment decision (FID) on the Ridley Island energy exporting facility (REEF) joint venture, according to a May 29 press release.
REEF is a large-scale LPG and bulk liquids terminal located on Ridley Island in British Colombia, Canada. The facility will be developed on a 190-acre site adjacent to AltaGas and Vopak’s existing propane exporting terminal.
REEF will grow Canada’s role in global energy exporting, strengthen Canadian and Asia Pacific connectivity and provide Canadian producers with access to the LPG global market, the release stated.
The bulk of REEF's construction is planned to take place over 2025 and 2026 with select workstreams beginning in 2024.
Phase 1 of the project will include approximately 55,000 bbl/d of initial LPG export capacity, 600,000 bbl of LPG storage, a new multi-product jetty structure to project the coastline and rail and logistics infrastructure.
As part of the FID, AltaGas said it is increasing its 2024 capex guidance to CA$1.3 billion (US$950 million) from CA$1.2 billion (US$877.1 million).
The joint venture expects capital cost of CA$1.35 billion (US$986.7 million) and sees more than 60% of Phase 1 capital costs stemming from fixed price and engineering, procurement and fabrication contracts prior to construction.
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