Canada seaborne LPG exports to increase

Export terminal capacity expansions on the country's Pacific coast will drive much of the growth, writes Yulia Golub

Seaborne LPG exports from Canada are expected to rise in 2022 as more export terminal capacity comes on line on the country's Pacific coast.

Growth in Canada's west coast export capacity will be led by upgrades at midstream companies Altagas' Ridley Island and Pembina's Prince Rupert terminals in British Columbia. At least 30,000 b/d (880,000 t/yr) is expected to be added in total, with another 30,000 b/d of capacity possible over the next few years.

Altagas intends to expand the Ridley Island propane export terminal to 80,000 b/d in the coming years from 58,000 b/d in the second half of 2021 and an initial 40,000 b/d following its opening in May 2019. The firm also exports around 50,000 b/d of propane and butane from its Ferndale terminal in the US state of Washington, having acquired a controlling stake in operating firm Petrogas in late 2020. Pembina is also contemplating an expansion of its 25,000 b/d Prince Rupert terminal, which it opened in April 2021, to 45,000 b/d. The company expects to make a final investment decision on the project in the first quarter.

Canada's petrochemical sector demand for propane is also due to rise this year. Midstream firm Inter Pipeline aims to start up its new 525,000 t/yr Heartland propane dehydrogenation plant in Alberta in the second quarter, which will consume around 650,000 t/yr of propane at capacity. But an expected increase in LPG production should more than offset any additional demand this year, as upstream output in Alberta continues to expand, supported by higher commodity prices. Propane production in Alberta averaged 179,000 b/d in January-October 2021 compared with 163,000 b/d a year earlier, according to Alberta Energy Regulator.