MONTREAL — Canadian National has reached a new five-year deal to haul AltaGas propane to the export terminal at the Port of Prince Rupert, British Columbia, the railway said today.
AltaGas opened the Ridley Island Propane Export Terminal — Canada’s first — in 2019. The terminal receives 50 to 60 tank cars per day from British Columbia and Alberta and can handle 1.2 million metric tons of propane annually.
“CN is proud to support the Canadian economy and the growth of our customer AltaGas,” CN CEO Tracy Robinson said in a statement. “By selling into our capacity and taking advantage of our unique network reach, we are confident in our ability to accelerate sustainable, profitable growth.”
Propane is produced as a byproduct of natural gas processing and petroleum refining, and is in demand in Asia as a fuel for commercial, industrial, and residential use.
“AltaGas is pleased to solidify our renewed transportation agreement with CN,” AltaGas CEO Vern Yu said in a statement. “The agreement provides AltaGas and our customers with cost and service predictability to continue to support ongoing resource development across Western Canada and provide our key downstream customers with energy security to support economic activity and fuel everyday life.”
Prince Rupert, located about 30 miles from the southern tip of Alaska, holds a 15-day shipping advantage compared to U.S. Gulf Coast terminals. Between 20 and 30 ships per year handle the propane between Prince Rupert and international terminals, AltaGas says.
