AltaGas and Royal Vopak have started site clearing work at the Ridley Island Energy Export Facility in British Columbia, Canada, according to a news release.
Logging, clearing, and drainage activities are expected to commence in the coming weeks, which will further solidify the project’s readiness prior to reaching a Final Investment Decision (FID) that is expected in the first half of 2024.
REEF, located on Ridley Island, will be a large-scale coastal terminal that will have the capability to export liquified petroleum gases (LPGs), methanol, and other bulk liquids.
The site work follows a five-year environmental preparation and review process, extensive engagement with Indigenous rights holders and local communities.
REEF has been granted the key Federal and Provincial permits to construct storage tanks, a new dedicated jetty, and rail and other ancillary infrastructure. The project will be developed on a 190-acre site on lands administered by the Prince Rupert Port Authority (PRPA) for which the joint venture has executed a long-term lease.
“REEF has made strong advancements across critical workstreams required to reach a positive FID,” the release states. “This includes the joint venture having made strong progress on engineering, procurement, and construction work and will be positioned to award several contracts in the first half of 2024.”
In October AltaGas entered a five-year transportation agreement with Canadian National Railway Company, which provides the JV and its customers cost and service predictability for Ridley Island Propane Export Terminal and the REEF expansion project.
REEF will be constructed and operate under AltaGas and Vopak’s existing exclusive rights granted by the PRPA to develop LPG, methanol, and other bulk liquids exports. Following a positive FID, the JV will have the option to progress evaluation work on fuels of the future, such as hydrogen, which has growing customer interest in Asia, particularly Japan and South Korea.
REEF Benefits from proximity to Asian markets for export.
ReSource exclusively reported that the sale process for a 50% stake in Vopak Moda Houston is in the final round.
