The Joint Venture has completed all major gating items, including front-end engineering design (FEED) and a detailed Class III capital estimate.
Site clearing work is more than 95 percent complete and with required permits in hand, the project is expected to come online near 2026 year-end.
Projected gross Joint Venture capital cost of $1.35 billion, excluding governmental incentives and support, with annual Partnership EBITDA of $185 million - $215 million are in-line with the Partners’ expectations.
Onsite work will be minimized to reduce capital cost risk and community impacts, with 90 percent of equipment, packaging and pipes expected to be prefabricated offsite in controlled operating environments.
The Joint Venture expects to lock-in more than 60 percent of the Phase 1 capital costs through fixed-price, lump-sum engineering, procurement and fabrication contracts prior to construction.
Vopak and AltaGas expect to fund their 50 percent pro-rata ownership through each company’s respective financial capacity with no leverage at the Partnership level.
REEF will enhance Canada’s role as a growing global energy exporter, strengthen Canadian and Asia Pacific energy connectivity and provide Canadian producers and aggregators with access to the premium global markets for LPGs.
With only ten shipping days to the fastest growing demand markets in Northeast Asia, REEF has a structural advantage in delivering LPGs to Asia with the shortest shipping time globally.
The project has First Nations support agreements in place and will drive further economic benefits to local communities in Northwestern B.C. through construction activities, long-term job creation and community investment focused on delivering positive outcomes for all stakeholders.
REEF will be constructed and operate under AltaGas and Vopak’s existing exclusive rights granted by the Prince Rupert Port Authority (PRPA) to develop LPG, methanol and other bulk liquids exports on Ridley Island.