Trigon Pacific Terminals鈥� board passed its final investment decision today (June 11) on a $750 million liquefied petroleum gas (LPG) export facility in Prince Rupert despite a current exclusivity deal between the Prince Rupert Port Authority and an Altagas/Royal Vopak partnership.
The facility will be able to export up to 2.5 million tonnes of primarily Alberta-produced propane and butane annually, positioning it as a major LPG export hub in Canada. Pending all required legal and regulatory approvals, the company could begin exports by late 2029.
鈥淲e鈥檝e come to the table with investment dollars and now we need the federal government to expedite this shovel-ready project that is clearly in the national interest,鈥� said Trigon CEO Rob Booker.
Booker pointed out that the project aligns with Canada鈥檚 economic goals of trade diversification and expanding exports of critical minerals and clean energy to global markets beyond the U.S., particularly in Asia. While Alberta supplies the product, Trigon offers reliable coastal access needed to move it to international markets quickly, he said.
鈥淲e want to keep this project moving along because we have some momentum now,鈥� said Craig Olley, Trigon鈥檚 president.
He noted that Asian buyers currently lack open access to LPG, which Trigon aims to offer by entering the market. 鈥淲e have a sort of responsibility to provide open market, fair access to the consumers in Japan, and currently, today, they don鈥檛 have that.鈥�
The president added that AltaGas and Royal Vopak cuurently hold exclusive rights to export this type of energy out of Prince Rupert, effectively giving them a monopoly on the West Coast.
鈥淚t鈥檚 always good to have some healthy competition,鈥� said Olley.
He recently returned from Japan as part of the business delegation accompanying Premier David Eby on his trade tour. He highlighted the strong LPG demand in Japan and South Korea, noting that Malaysia has also begun to show interest.
鈥淎t least a dozen different entities were supportive and pleased to see Trigon stepping up to facilitate LPG movement into Asia. They understand that Prime Minister Carney is supportive of these cleaner, lower-emission type fuels for energy use in Asia,鈥� said Olley.
In February, amid the Canada-U.S. tariff dispute, Booker urging the federal government to direct the Prince Rupert Port Authority (PRPA) to revoke the exclusive LPG export access granted to AltaGas and Royal Vopak.
The port authority, which is Trigon's landlord has already partnered with the two companies on a and maintains its position against allowing Trigon to expand LPG operations on Ridley Island.
Olivia Mowatt, senior communications manager at PRPA, confirmed that the port will not authorize Trigon's project. She added that any project on PRPA-administered lands must undergo a robust regulatory review, including environmental assessment and authorization. This process that has not been initiated for any LPG project at Trigon Pacific Terminals.
Olley noted that Trigon already has key infrastructure in place, including LPG loading arms, existing rail connections, and marine berth access, which removes the need for new construction. He said AltaGas and Royal Vopak currently use Trigon鈥檚 loading arms for their LPG exports.
He confirmed that the existing setup can also handle Trigon鈥檚 own exports in the future.
Trigon鈥檚 June 11 news release highlighted support from Chief Councillor Garry Reece of the Lax Kw鈥檃laams Band, Chief Robert Nelson of the Metlakatla First Nation, and the Government of Alberta on this project.
鈥淲e have some of the largest reserves of natural gas and natural gas liquids in the world and are working hard to meet the growing demand of our partners in Japan, Korea and Asia. This new Indigenous-backed facility will play a major role in the long-term success of these partnerships and in promoting Indigenous economic reconciliation,鈥� stated Brian Jean, Alberta Minister of Energy and Minerals.
As of 2024, Trigon Pacific Terminals is the largest terminal by volume at the Port of Prince Rupert, having handled 9.1 million metric tonnes of dry and liquid bulk products. The multi-commodity bulk terminal ships various materials, including steelmaking and thermal coal, petroleum coke, iron ore pellets, and liquid propane gas (LPG).
According to the Canadian government, Canada produced 46.7 million tonnes of coal in 2022. Of that, 59 per cent was metallurgical coal used in steelmaking, while 41 per cent was thermal coal used for electricity generation. The government noted that coal-fired power remains the largest global source of greenhouse gas emissions, contributing to climate change and posing health risks.
When asked whether Trigon would scale back its thermal coal exports once its zero-emission ammonia/hydrogen and lower-emission LPG facilities become operational, the company said it would remain committed to continuing current coal exports.
鈥淲e understand the importance of these resources to various industries and economies; the world will always need steel, and many countries still rely on thermal coal for energy. We are dedicated to maintaining our operations to support their needs,鈥� said Olley.
