A Prince Rupert monopoly is blocking Canada’s energy potential
At Trigon Pacific Terminals, a deep-sea bulk export terminal in Prince Rupert,B.C., we are investing hundreds of millions of dollars to modernize our facilities for cleaner energy exports to Asia, including ammonia—a critical zero-carbon fuel of the future. We’re committed to doing our part to diversify Canada’s energy exports, both in terms of fuels and destinations, to meet rising demand.
As global demand rises for cleaner, more secure sources of energy, Canada faces a choice: expand capacity or risk being left behind.
At Trigon Pacific Terminals, a deep-sea bulk export terminal in Prince Rupert,B.C., we are investing hundreds of millions of dollars to modernize our facilities for cleaner energy exports to Asia, including ammonia—a critical zero-carbon fuel of the future. We’re committed to doing our part to diversify Canada’s energy exports, both in terms of fuels and destinations, to meet rising demand.
However, our path forward has hit a regulatory roadblock. The Prince Rupert Port Authority, the federal body governing Canada’s third-busiest seaport, has granted a monopoly over propane exports to a private consortium of Calgary-based AltaGas and Dutch multinational Royal Vopak.
Propane, another low-emission energy source, is seeing growing demand across Asia as a primary fuel for cooking and heating. Despite this, the port authority has barred additional propane exporters from the Prince Rupert market and is refusing to disclose the full scope or all of the terms of the exclusive arrangement. The bottom line is that the door to enter this critical market has been shut.
The demand for propane exports from Canada is immense, with potential clients clamoring for greater capacity and more competitive options.
At Trigon, we’re prepared to repurpose terminal lands and infrastructure currently used for thermal coal, which will soon be banned for export, to support propane exports. The global propane market is expected to grow through the second half of this decade and remain strong through 2050, but currently,there are only two export facilities on Canada’s West Coast, both at Prince Rupert: one operated by AltaGas and another run by Pembina. AltaGas is alreadyadvancing a second terminal at the port with Royal Vopak.
Shipping propane to Asian markets also allows Canadian exporters to diversify beyond U.S. rail exports, which have historically dominated our sales but yield lower prices. Canada should be focused on growing its export potential, not strangling competition and limiting our access to lucrative markets abroad.
Canada has been vocal in its goal to modernize port operations, promote competition, and attract investment in the sector. This was a central message in the federal government’s Port Modernization Review. It’s also embedded within Canada’s Indo-Pacific Strategy,which aims to strengthen economic ties with Asia by increasing export capacity and facilitating energy flows. But the port authority exclusivity deal runs counter to these goals.
Our only recourse has been legal action. Trigon has reached out to the federal body in an effort to initiate discussions in good faith, hoping to find a mutually beneficial solution. Instead, we’ve been met with threats of further legal action simply for raising awareness of the issue—a stance that does nothing to support Canada’s ability to meet global demand for sustainable fuel sources.
A single supplier not only restricts Canada’s ability to meet international demand but risks putting Canada in a position where competitors, especially in the U.S., capture market share we could easily fulfill.
Alberta, as a key producer of propane,already faces limited routes for exporting its resources, with only a few feasible options for moving goods through North America. Forcing our energy resources through a single supplier constricts Alberta’s opportunities,impacting the economic prosperity of both the province and the country.
For the sake of Canadian competitiveness and our nation’s economic resilience, the Prince Rupert Port Authority must be called to the table to revisit this exclusivity arrangement. We’re urging Transport Canada, which oversees port authorities across the country, to up hold its commitment to modernizing ports, facilitating fair competition, and ensuring that Canada’s export infrastructure aligns with our national economic interests.
Canada’s role in the Asia-Pacific energy markets is more than an opportunity; it’s a necessity.
A bottleneck at this key export terminal, restricted by an exclusive deal, limits the country’s economic potential. It’s time for the Prince Rupert Port Authority to align with federal objectives, sit down with Trigon, and find a solution that benefits all stakeholders.
By working together, we can ensure that Canada remains a leader in supplying cleaner energy to the world.