Project will Strengthen Canada-Asia Connectivity and Deliver the
Best Markets for Canadian LPGs
CALGARY,
AB and PRINCE RUPERT, BC
and ROTTERDAM, The
Netherlands, Nov. 14,
2023 /CNW/ - AltaGas Ltd. ("AltaGas")
(TSX: ALA) and Royal Vopak ("Vopak") (XAMS: VPK) advise
that another important step in development for the Ridley Island
Energy Export Facility ("REEF") is underway. Site clearing work,
including 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, British Columbia, Canada, will be a
large-scale coastal terminal that will have the capability to
export liquified petroleum gases (LPGs), methanol, and other bulk
liquids that are vital for everyday life. Following a five-year
environmental preparation and review process, extensive engagement
with Indigenous rights holders and local communities, and thorough
planning, the joint venture is set to deliver a project that will
operate with industry-leading environmental stewardship focused on
bringing the strongest benefits to all stakeholders.
As previously disclosed, 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 facility. The project will be developed
on a 190-acre (77 hectare) site on lands administered by the Prince
Rupert Port Authority ("PRPA") for which the joint venture has
executed a long-term lease.
Critical Workstreams Progressing Smoothly for Near-term
FID
REEF has made strong advancements across critical workstreams
required to reach a positive FID, including commercial,
engineering, and partnership agreements. 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 joint venture and its customers cost
and service predictability for Ridley Island Propane Export
Terminal and the REEF expansion project. This was a critical
milestone for REEF to deliver its customers the lowest costs
possible for moving propane and butane to the west coast.
REEF will Advance Under the Joint Venture's Existing
Exclusive Rights for LPG Exports on Ridley
Island
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 on Ridley Island. The provision of these exclusive
rights was an important step to enable the certainty required to
advance large capital projects through long and fulsome development
periods, and ensure developers advance projects with comprehensive
environmental and community stewardship.
REEF has Strong Community Support Following Extensive
Stakeholder Engagement
Vopak and AltaGas have been working closely with First Nations
rights holders and key stakeholders, including the local
communities in Northwestern British
Columbia, as well as the PRPA, and Federal and Provincial
regulators, for more than five years to deliver a project that will
operate with industry-leading environmental and community
stewardship. AltaGas and Vopak have developed strong relationships
with local Indigenous communities through its existing operations,
where the partners have worked collaboratively on economic and
social development opportunities, including skills training,
emergency response preparedness, and other community-identified
priorities.
REEF will have Optionality for Alternative Fuels
Following a positive FID, the joint venture 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. The joint venture has strong core competencies in
this area with Vopak being one of the preeminent third-party
hydrogen storage platforms globally, operating multiple terminals
across several countries. It is through this deep experience that
the joint venture will consider participation in hydrogen exports
from Canada with evaluation work
expected to be done methodically with a critical emphasis on
safety.
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 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, as is currently
being experienced, or when other global shipping pinch points
experience disruptions.
AltaGas and Vopak are excited to complete the final milestones
required to prudently sanction REEF in the first half of 2024 with
active site clearing work reiterating the joint venture's
confidence in reaching a positive FID. Vopak and AltaGas thank all
stakeholders for the continued embracement and ongoing partnerships
as part of this project's long development timeline. Working with
stakeholders and seeking strong partnerships is part of both
organizations' individual and collective DNA and is engrained in
how Vopak and AltaGas approach their businesses every day.
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.
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
For more information please contact:
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
Vopak:
- Analysts and Investors: Fatjona Topciu - Head of Investor Relations
(investor.relations@vopak.com)
- Press: Liesbeth Lans - Manager External
Communication (global.communication@vopak.com)
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 and deliver the best markets for
Canadian LPGs; the potential development of REEF and expected
project activities, deliverables and timing thereof; expectation
that REEF will operate with industry-leading environmental and
community stewardship to deliver the strongest benefits to all
stakeholders; REEF's ability to award several contracts in the
first half of 2024; REEF's evaluation of and future participation
in hydrogen exports; the expected impact of REEF's structural
advantage and outcomes therefrom, including time savings of North
American West Coast LPG exports; expectation to make a positive
financial investment decision in the first half of 2024; 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.