First quarter start ahead for Pembina LPG terminal at Watson Island

The construction process is all but down to finishing touches at the Watson Island LPG export terminal, with Pembina Pipelines now into the commissioning phase in the lead up to to the start of operations at the old pulp mill site.

Pembina started the process of turning a section of the City of Prince Rupert's Watson Island site into the regions latest export terminal back in the summer of 2018.

The newest export facility for Prince Rupert received a mention in the most recent update for investors from Peminda, with company officials outlining the scope of the First phase and some notes on their expansion plans which are already being investigated, though no decision on the second phase is anticipated until later this year at the earliest.

Development continues at Pembina's Prince Rupert Terminal located on Watson Island, British Columbia. The approximately 25,000 bpd project will primarily source propane from the Company's Redwater Complex. Marine, rail, sphere, and mechanical construction is nearing completion, and electrical construction and commissioning activities are in progress. 

The project has a capital budget of $250 million and is over budget with an expected in-service date in the first quarter of 2021. 

The Prince Rupert Terminal Expansion project remains deferred. Engineering of the expansion is well advanced and Pembina expects to make a final investment decision in the second half of 2021.

Propane from Western Canada will soon be transiting to
Prince Rupert for shipment to global markets

Pembina officials also have outlined how the start up of operations will help expand their global footprint in the international propane market, with propane from Western Canada arriving by rail at the Prince Rupert facility for shipment to export markets.

We are very excited about the start-up of our propane export facility, the Prince Rupert Terminal, which will come into service near the end of the first quarter. 

This project is important as it represents our first export facility and will provide customers with improved access to more international markets and attract higher pricing for their propane.

In 2018, the City of Prince noted that it anticipates a gross estimated income to the municipality and Legacy Corporation of more than 75 million dollars in revenues, that through lease payments and property taxes over the course of the long term commercial arrangement, though the city has not noted how much that will deliver to the city per year.

You can follow along with the progress of the terminal from our archive page here.

Cross posted from the North Coast Review.