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