- Rough seas have been posing challenges for AltaGas Ltd. as construction on its propane and butane export terminal on British Columbia’s north coast nears completion.
- The Ridley Island Energy Export Facility, or REEF, is 85 per cent complete and on track to come online before the end of March 2027, the company said Thursday as it reported its second-quarter results.
- REEF’s capital cost estimate has risen by 12 per cent to about $1.5 billion.
- Since we started in-water construction at REEF in the fall of 2024, we have lost over 450 rig days due to extreme weather, extreme ocean swells and marine mammal activity.
- These lost rig days significantly exceeded any normal contingency plan.
- As a result, onshore efficiencies are no longer expected to fully offset higher in-water construction costs.
- The jetty and loading platform are 80 per cent complete at the site in Prince Rupert, B.C., and most of the remaining in-water work is set to wrap over the next six weeks.
- With the in-water phase of construction, the most complex and challenging part of REEF, nearing-completion, we’re highly confident that we’ll be able to meet a revised cost estimate and schedule.
Rough seas have significantly impacted the construction timeline and costs of AltaGas Ltd.'s Ridley Island Energy Export Facility (REEF), which is now 85% complete and projected to commence operations by March 2027. The capital cost has escalated by 12% to approximately $1.5 billion due to extreme weather conditions and marine activity.123
Since the initiation of in-water construction in fall 2024, the project has experienced a loss of over 450 rig days attributed to severe weather, ocean swells, and marine mammal activity. These delays have surpassed normal contingency plans, leading to increased in-water construction costs that onshore efficiencies cannot fully mitigate.456
The jetty and loading platform are currently 80% complete, with most remaining in-water work expected to conclude within the next six weeks. AltaGas's CEO, Vern Yu, acknowledged the challenges, stating, “While onshore execution has been ahead of plan, in-water construction has proven more challenging due to maritime conditions and weather delays.”7
In its recent financial report, AltaGas announced a net income of $288 million for the quarter ending June 30, up from $175 million the previous year, with revenue rising to $3.8 billion from $2.84 billion in the same quarter of 2025. The company has also adjusted its capital spending guidance for 2026 to $1.8 billion.
“The Ridley Island Energy Export Facility is now 85% complete, with most in-water work expected to finish in six weeks. AltaGas reported a 12% increase in capital costs to $1.5 billion, as lost rig days due to weather have exceeded contingency plans.”
