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PRINCE RUPERT, B.C. – AltaGas is celebrating the grand opening of the first marine propane export terminal in Canada.
The first marine export facility opened in Prince Rupert with the first shipment leaving the terminal May 23, 2019, headed to Asia.
In 2017, AltaGas entered a multi-year agreement with Astomos Energy Corporation, a Japanese propane importer and distributor, to purchase at least 50 percent of the propane shipped from Ridley Island Propane Export Facility (RIPET) annually. RIPET provides producers and customers with a significant locational advantage given comparatively short shipping distances to markets in Asia – notably a 10-day shipping time from Canada’s West Coast compared to 25 days from the U.S. Gulf Coast.
“The completion of this game-changing project and the shipment of our first cargo are historic milestones for AltaGas, as well as for our project partners, customers, local Indigenous Peoples, surrounding communities, and western Canada’s upstream energy sector,” said Randy Crawford, AltaGas’ President and Chief Executive Officer. “With RIPET now operational, we can offer producers a uniquely complete solution for their propane, providing premium netbacks and market optionality, while also positioning AltaGas to profitably grow our Midstream footprint – a true win-win for AltaGas and our customers.”
“The ability to import Canadian propane is a significant advantage for Japan, as it provides greater energy security and supply diversification, while also enabling Canada to maximize the value of its natural resources,” said Seiya Araki, President of Astomos Energy Corporation. “This first-of-its-kind project demonstrates to the world what can be achieved through effective partnerships between Canadian and Japanese companies, and will ultimately benefit both countries for decades to come.”
In total, RIPET is expected to ship approximately 1.2 million tonnes of propane annually to customers in Asia.
RIPET is owned by a joint venture between AltaGas (as to a 70 percent interest) and a Canadian subsidiary of Royal Vopak (as to a 30 percent interest).
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