The Project Would Further Strengthen Canadian and Asia
Pacific Energy Connectivity, Improve Global Energy Security, and
Deliver Positive Outcomes for All Stakeholders
ROTTERDAM, The Netherlands, CALGARY, AB and PRINCE RUPERT, BC, April 26,
2023 /CNW/ - 26 April
2023 - 07:05 Central European Summer Time / 25 April 2023 - 11:05pm
Mountain Standard Time
Royal Vopak ("Vopak") (XAMS: VPK) and AltaGas Ltd.
("AltaGas") (TSX: ALA) are pleased to announce the execution of
definitive agreements for a new 50/50 joint venture to further
evaluate development of the Ridley Island Energy Export Facility
(REEF), a large-scale liquefied petroleum gas (LPG) and bulk
liquids terminal with marine infrastructure on Ridley Island, British
Columbia, Canada.
REEF, as part of the previously submitted regulatory filings
(under the name of Vopak Pacific Canada), will have the capability
to facilitate the export of LPGs, methanol, and other bulk liquids
that are vital for everyday life. REEF has been granted the key
Federal and Provincial permits to construct storage tanks, a new
dedicated jetty, and rail and other ancillary infrastructure
required to operate a state-of-the-art and highly efficient
facility. REEF would be developed on a 190-acre (77 hectare) site
on lands administered by the Prince Rupert Port Authority for which
the joint venture has executed a long-term lease that sits adjacent
to AltaGas and Vopak's existing Ridley Island Propane Export
Terminal (RIPET), which has been in operation since April 2019.
Should REEF reach a positive final investment decision (FID), it
is planned to be developed and brought online in phases. This
approach will provide the most capital efficient build out of the
project, match energy export supply with throughput capacity,
mitigate the challenges that large development projects can have on
local communities, and provide local construction and employment
opportunities that would extend over longer time horizons. AltaGas
has executed a long-term commercial agreement with the joint
venture for 100% of the capacity for the first phase of LPG
volumes, subject to a positive FID. AltaGas will also be
responsible for the construction and operational stewardship of the
facility. Future phases of the project will be developed as
additional long-term commercial agreements and critical milestones
are achieved to deliver the maximum value for all stakeholders.
Vopak, AltaGas, and the Prince Rupert Port Authority have been
working closely with First Nations rights holders and key
stakeholders, including the local communities in Northwestern British Columbia and the Federal
and Provincial regulators, to deliver a project that will operate
with industry-leading environmental stewardship and bring the
strongest benefits to all parties involved. Key determinations and
permits have been received from the Federal Government and an
Environmental Assessment Certificate has been received from the
British Columbia Provincial Government.
REEF Benefits from Structural West Coast Advantage to Asian
Markets
With only ten shipping days to the fastest growing demand
markets in Northeast Asia, REEF
will be able to efficiently connect Canada's vital energy products to the world.
This includes having an approximate 60 percent base time savings
over the U.S. Gulf Coast, which requires a minimum 25-day shipping
time to Northeast Asia, and
approximately 45 percent base case time savings over the Arabian
Gulf, which requires a minimum 18-day shipping time. This
geographic advantage expands when there is significant congestion
in the Panama Canal or when other global shipping pinch points
experience disruptions. Furthermore, the Port of Prince Rupert provides REEF year-round
ice-free operations and has the deepest natural harbour in
North America, leaving it able to
accommodate the world's largest vessels, which ensures safe and
reliable market access and allows AltaGas and Vopak to efficiently
connect upstream and downstream markets.
Joint Venture is Targeting Advancement of Critical
Workstreams Over 2023
REEF is currently working through front end engineering design
(FEED) activities, where deliverables will include a refined
capital cost estimate, a project execution plan, a construction
schedule, and a projected in-service date, among numerous other
items. FEED and other development activities are expected to be
completed by late 2023, followed by an FID by the joint venture.
Solidifying long-term economic rail agreements in partnership with
the rail operator will also be key for the joint venture to be able
to reach a positive FID and ensure the project advances, and, in
turn, delivers the strong benefits to the joint venture partners,
First Nations rights holders, the Prince Rupert Port Authority,
local communities, upstream and downstream customers, and other key
stakeholders.
Vopak and AltaGas are excited to further evaluate the
development of REEF and build on the strong partnership between the
two companies, under this new joint venture agreement. Vopak and
AltaGas thank all stakeholders for the continued embracement and
ongoing partnerships as part of this project. Working with
stakeholders and seeking strong partnerships is part of both
organization's individual and collective DNA and is engrained in
how Vopak and AltaGas approach their businesses every day.
"We are excited to build on our success with AltaGas in
Prince Rupert", said Dick Richelle, Chairman of the Executive Board
and CEO of Royal Vopak. "Our goal is to create together with
partners high quality critical infrastructure for vital products.
The strategic location of Prince
Rupert, with the shortest shipping distances between
North America and Asia, has the potential to increase the trade
between Canada and the
Asia Pacific region. REEF fits
very well within Vopak's strategic pillar to grow in gas and
industrial infrastructure. We look forward to further collaboration
with First Nations rights holders and key stakeholders to make this
project a reality."
"We are excited to execute this agreement and continue to
advance our relationship with Vopak, the Prince Rupert Port
Authority, First Nations rights holders, and the local communities
surrounding Prince Rupert" said
Randy Crawford, President and CEO of
AltaGas. "Canada has a structural
advantage in delivering LPGs into Asia from its world class resources and
through the shortest shipping time and lowest maritime emissions
footprint. AltaGas delivers more than 12% of Japan's propane and 12% of South Korea's LPG imports through connecting
our valued upstream customers with key downstream markets in
Asia. REEF fits our corporate
strategy of operating long-life infrastructure assets that connect
customers and markets and provide resilient and durable value for
our stakeholders. We look forward to working with all our partners
to achieving the remaining milestones required to reach a positive
FID on the project."
"We congratulate Royal Vopak and AltaGas on this significant
milestone towards advancing development of the terminal project at
the Port of Prince Rupert" said
Shaun Stevenson, President and CEO,
Prince Rupert Port Authority. "Once operational, the new facility
will substantially increase and diversify the Port of Prince Rupert's liquid bulk cargo capabilities
and capacity, while providing a much-needed export solution for
Canadian producers during a critical time in the global energy
transition."
"We commend Vopak and AltaGas on their efforts to-date on
building long-term relationships with our community," said Chief
Harold Leighton, Metlakatla First
Nation. "We are excited with the potential this joint venture
project provides to our area and the Metlakatla First Nation."
About Royal Vopak
Royal Vopak is the world's leading independent tank storage
company. We store vital products with care. Products for everyday
life. The energy that allows people to cook, heat or cool their
homes and for transportation. The chemicals that enable companies
to manufacture millions of useful products. The edible oils to
prepare food. We take pride in improving access to cleaner energy
and feedstocks for a growing world population, ensuring safe, clean
and efficient storage and handling of bulk liquid products and
gases at strategic locations around the world. We are excited to
help shape a sustainable future by developing infrastructure
solutions for new vital products, focusing on zero- and low-carbon
hydrogen, ammonia, CO2, long duration energy storage and
sustainable feedstocks. We have a track record of over 400 years in
navigating change and are continuously investing in innovation. On
sustainability, we are ambitious and performance driven, with a
balanced roadmap that reflects key topics that matter most to our
stakeholders and where we can have a positive impact for people,
planet and profit and the United Nations Sustainable Development
Goals. Vopak is listed on the Euronext Amsterdam and is
headquartered in Rotterdam, the
Netherlands. For more information, please visit
www.vopak.com
About AltaGas
AltaGas is a leading North American infrastructure company that
connects customers and markets to affordable and reliable sources
of energy. The Company operates a diversified, lower-risk,
high-growth Utilities and Midstream business that is focused on
delivering resilient and durable value for its stakeholders. The
company's mission is to improve quality of life by safely and
reliably connecting customers to affordable sources of energy for
today and tomorrow.
From wellhead to tidewater, AltaGas' Midstream business is
focused on providing its customers with safe and reliable service
and connectivity that facilitates the best outcomes for their
businesses. This includes global market access for North American
LPGs, which provides North American producers and aggregators with
the best netbacks for LPGs while delivering diversity of supply and
stronger energy security to its downstream customers in
Asia.
Throughout AltaGas' operations, the company is playing a vital
role within the larger energy ecosystem that keeps the global
economy moving forward and is powering the possible within our
society, and in a safe, reliable, and affordable manner.
For more information please contact:
Vopak:
- Analysts and Investors: Fatjona Topciu - Head of Investor Relations
(investor.relations@vopak.com)
- Press: Liesbeth Lans - Manager External
Communication (global.communication@vopak.com)
AltaGas:
- Analysts and Investors: Jon
Morrison, Senior Vice President, Corporate Development
and Investor Relations (Jon.Morrison@altagas.ca) or Adam McKnight, Director, Investor Relations
(Adam.McKnight@altagas.ca)
- Media Inquiries: media.relations@altagas.ca
FORWARD-LOOKING INFORMATION
This news release contains forward-looking information
(forward-looking statements). Words such as "may", "can", "would",
"could", "should", "will", "intend", "plan", "anticipate",
"believe", "aim", "seek", "propose", "contemplate", "estimate",
"focus", "strive", "forecast", "expect", "project", "target",
"potential", "objective", "continue", "outlook", "vision",
"opportunity" and similar expressions suggesting future events or
future performance, as they relate to the Corporation or any
affiliate of the Corporation, are intended to identify
forward-looking statements. In particular, this news release
contains forward-looking statements with respect to, among other
things, business objectives, expected growth, results of
operations, performance, business projects and opportunities and
financial results. Specifically, such forward-looking
statements included in this document include, but are not limited
to, statements with respect to the following: AltaGas' belief that
REEF will strengthen Canadian and Asia
Pacific energy connectivity, improve global energy security
and deliver positive outcomes for all stakeholders; the potential
development of REEF and expected project activities, deliverables
and timing thereof; expectation that AltaGas' development approach
will provide the most capital efficient build, match energy export
supply with throughput capacity, mitigate challenges and provide
longer-term local employment opportunities; anticipation of
successful collaboration with First Nations and other key
stakeholders; the expected impact of REEF's structural advantage
and outcomes therefrom, including significant increases in
producers' LPG prices and time savings of North American West Coast
LPG exports; the expectation that the US Gulf Coast and Arabian
Gulf will continue to be the balancing markets for Asian markets;
AltaGas' Midstream business focus, strategy and expected outcomes
therefrom; and the importance of AltaGas' role in the larger energy
ecosystem and global economy.
These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results,
events, and achievements to differ materially from those expressed
or implied by such statements. Such statements reflect AltaGas'
current expectations, estimates, and projections based on certain
material factors and assumptions at the time the statement was
made. Material assumptions include: anticipated timing of asset
sale closings, effective tax rates, financing initiatives, degree
day variance from normal, pension discount rate, the performance of
the businesses underlying each sector, impacts of the hedging
program, expected commodity supply, demand and pricing, volumes and
rates, exchange rates, inflation, interest rates, credit ratings,
regulatory approvals and policies, future operating and capital
costs, capacity expectations, weather, frac spread, access to
capital, planned and unplanned plant outages, timing of in-service
dates of new projects and acquisition and divestiture activities,
returns on investments, and dividend levels.
AltaGas' forward-looking statements are subject to
certain risks and uncertainties which could cause results or events
to differ from current expectations, including, without limitation:
risks related to conflict in Eastern
Europe; health and safety risks; operating risks;
infrastructure; natural gas supply risks; volume throughput;
service interruptions; transportation of petroleum products; market
risk; inflation; general economic conditions; cyber security,
information, and control systems; climate-related risks;
environmental regulation risks; regulatory risks; litigation;
changes in law; Indigenous and treaty rights; dependence on certain
partners; political uncertainty and civil unrest; decommissioning,
abandonment and reclamation costs; reputation risk; weather data;
capital market and liquidity risks; interest rates; internal credit
risk; foreign exchange risk; debt financing, refinancing, and debt
service risk; counterparty and supplier risk; technical systems and
processes incidents; growth strategy risk; construction and
development; underinsured and uninsured losses; impact of
competition in AltaGas' businesses; counterparty credit risk;
composition risk; collateral; rep agreements; market value of
common shares and other securities; variability of dividends;
potential sales of additional shares; labor relations; key
personnel; risk management costs and limitations; commitments
associated with regulatory approvals for the acquisition of WGL;
cost of providing retirement plan benefits; failure of service
providers; risks related to pandemics, epidemics or disease
outbreaks, including COVID-19; and the other factors discussed
under the heading "Risk Factors" in the Corporation's Annual
Information Form for the year ended December
31, 2022 and set out in AltaGas' other continuous disclosure
documents.
Many factors could cause AltaGas' or any particular business
segment's actual results, performance or achievements to vary from
those described in this press release, including, without
limitation, those listed above and the assumptions upon which they
are based proving incorrect. These factors should not be construed
as exhaustive. Should one or more of these risks or uncertainties
materialize, or should assumptions underlying forward-looking
statements prove incorrect, actual results may vary materially from
those described in this news release as intended, planned,
anticipated, believed, sought, proposed, estimated, forecasted,
expected, projected or targeted and such forward-looking statements
included in this news release, should not be unduly relied upon.
The impact of any one assumption, risk, uncertainty, or other
factor on a particular forward-looking statement cannot be
determined with certainty because they are interdependent and
AltaGas' future decisions and actions will depend on management's
assessment of all information at the relevant time. Such statements
speak only as of the date of this news release. AltaGas does not
intend, and does not assume any obligation, to update these
forward-looking statements except as required by law. The
forward-looking statements contained in this news release are
expressly qualified by these cautionary statements.
Financial outlook information contained in this news release
about prospective financial performance, financial position, or
cash flows is based on assumptions about future events, including
economic conditions and proposed courses of action, based on
AltaGas management's (Management) assessment of the relevant
information currently available. Readers are cautioned that such
financial outlook information contained in this news release should
not be used for purposes other than for which it is disclosed
herein.
Additional information relating to AltaGas, including its
quarterly and annual MD&A and Consolidated Financial
Statements, AIF, and press releases are available through AltaGas'
website at www.altagas.ca or through SEDAR at www.sedar.com
SOURCE AltaGas Ltd.