Government backing and growing global interest are set to propel Canada's Prince Rupert into an increasingly important regional LPG hub
The Canadian NGL industry's landmark investment in a new rail terminal to facilitate deliveries to Prince Rupert for seaborne export demonstrates its commitment, with government support, to turning the port into a global LPG export hub.
The small port city on the British Columbia coast is already home to AltaGas' 92,000 b/d (2.7mn t/yr) Ridley Island propane export terminal (Ripet) and Pembina's 25,000 b/d LPG facility. Ripet will be joined by AltaGas' adjacent Ridley Island energy export facility (Reef) when it opens late this year. Reef will start with 55,000 b/d of capacity, with plans to expand this to 80,000 b/d by 2027 and potentially to 140,000 b/d in the following years, the company said in November.
A third terminal within a metaphorical stone's throw of Ripet and Reef could emerge if coal exporter Trigon wins a court case against Prince Rupert Port Authority (PRPA) over its right to operate a planned LPG terminal. PRPA ruled in 2023 that AltaGas and Vopak have time-limited exclusive rights. Trigon is advancing plans for a C$750mn ($549mn) partial conversion of its 18mn t/yr coal terminal into a 2.5mn t/yr LPG export facility. "We are excited about our project and confident in our legal case — we know the [Pacific] coast can support multiple terminals for LPG export growth," Trigon said in mid-2025.
Several factors are underpinning Prince Rupert's emergence as a hub. Upstream activity in the Montney shale region of Alberta and British Columbia continues to yield more NGLs, while new gas processing plants and NGL fractionators are boosting supply amid stagnating domestic demand. The wider push to develop LNG exports from the Pacific coast is further catalysing this growth and opening NGL infrastructure opportunities.
Ottawa's pivot to export diversification after last year's rupture in US trade relations is also adding momentum. The government launched its Major Projects Office in 2025 to fast-track export projects, and has more recently proposed new regulations and cuts to red tape to expedite infrastructure investment.
US president Donald Trump's trade tariffs are also cultivating interest from Asian importers. The US-China trade war has effectively cut off most LPG trade between the two states, prompting Japanese importers to swap their Canadian purchases for US supplies with Chinese buyers. China now receives the large majority of Canadian LPG exports, and importers are keen to do more of this business.
Signature Toone
Canadian prime minister Mark Carney visited Beijing to sign eight initial agreements with China in early 2026, including a commitment to increase LPG trade. "Right now, LPG is probably the easiest way to get energy over there… we think LPG is a long-term fuel for China," AltaGas' midstream vice-president Randy Toone said at the time. AltaGas at the time signalled its intent to sign LPG term contracts with Chinese customers after receiving "a lot of interest". It is installing a methanol removal unit at Ripet this year so that its propane is viable for China's PDH plants.
The Iran war is providing further impetus. The loss of Mideast Gulf LPG leaves Canada as an attractive alternative for Asian importers looking to reduce dependence on the region. India and Canada in March announced plans to finalise a trade deal this year that would "more than double" two-way trade to C$70bn a year by 2030. The war is also driving petrochemical industry interest in ethane feedstock. Canadian ethane exports are enticing but face steeper infrastructure barriers, although the industry is hopeful these can be overcome in the coming years.
Prince Rupert's emergence as an increasingly important regional LPG hub looks all but assured. Depending on the scale of future flows, it could help ease some of the pressure on the US Gulf coast and the Panama Canal in the years ahead.
