AltaGas Ends Labor Dispute at Key Propane Terminal, Securing Exports to Asia

CALGARY, AB – December 29, 2025 – Operations have fully resumed at one of Canada’s most critical energy export hubs after AltaGas Ltd. successfully reached a new five-year labor agreement with the International Longshore and Warehouse Union (ILWU) Local 523B, ending a 28-day strike at its Ridley Island Propane Export Terminal (RIPET).

The agreement, which was ratified by union members, saw employees return to work on December 25, concluding a period of uncertainty for the facility. The resolution ensures the continued flow of Canadian propane to high-value Asian markets and reinforces Canada’s position as a reliable global energy supplier. The month-long disruption had brought sharp focus to the terminal's strategic importance and the delicate balance of labor relations within Canada's essential infrastructure.

The Roots of the Dispute

The labor disruption, which commenced on November 27, 2025, was the culmination of months of tense and unsuccessful negotiations. At the heart of the union's grievances were significant concerns over workplace safety and staffing levels. A primary point of contention was AltaGas's alleged proposal to alter the facility's minimum safe manning plan, a protocol that dictates the number of staff required to safely conduct propane transfers.

The union contended that the company sought to reduce crew sizes while expecting the same volume of transfers, a move they argued would compromise worker safety in a high-risk environment. Beyond safety protocols, ILWU Local 523B was also pushing for improved wages to bring them in line with compensation in comparable industries. Workers also cited issues with forced overtime and a desire for a better work-life balance, issues that have become increasingly prominent in labor negotiations across many sectors post-pandemic.

The standoff persisted for four weeks, a significant duration for a facility so crucial to Canada's energy export strategy. The strike highlighted the potential vulnerability of key supply chain nodes to labor disputes, a recurring theme that has impacted various Canadian ports in recent years.

A Test of Corporate Resilience

Despite the complete withdrawal of its unionized workforce, AltaGas managed to maintain consistent operations at RIPET throughout the 28-day strike. The company quickly activated a contingency plan, deploying its operational leadership and other non-unionized staff to serve as an alternative workforce. This strategy proved remarkably effective, allowing the terminal to continue loading and exporting propane without interruption.

AltaGas reported that it successfully maintained safe and reliable service for its more than 70 international customers during the entire period. This operational continuity was critical, not only for the company’s bottom line but also for upholding Canada's reputation. By preventing a shutdown, AltaGas demonstrated a high degree of resilience and crisis management, mitigating potential damage to its customer relationships and market position.

Financially, the company has expressed confidence that the strike will have a minimal impact on its performance. AltaGas publicly reaffirmed its full-year 2025 financial guidance even as the strike was underway, signaling to investors that its contingency measures were sufficient to weather the disruption. While final fourth-quarter results are not yet available, investor sentiment has remained relatively stable, with analysts largely maintaining their ratings on the company's stock, reflecting confidence in its management and diversified business model.

RIPET: Canada's Strategic Gateway to the World

The resolution of the dispute carries significance far beyond AltaGas and its workforce. The Ridley Island Propane Export Terminal is a cornerstone of Canada's energy infrastructure and a vital conduit for the country's natural gas liquids. As Canada's first-ever propane export facility, RIPET provides Canadian producers with crucial access to overseas markets, diversifying their customer base beyond a traditional reliance on the United States.

Its location on British Columbia's west coast gives it a significant logistical advantage, offering a 15-day shorter shipping route to East Asia compared to rival terminals on the U.S. Gulf Coast. This advantage is critical for competing in the lucrative Asian energy market, where countries like Japan and South Korea are key importers seeking to enhance their energy security. In 2024, over 40% of Canada's waterborne propane exports were destined for Asia, a figure that has grown steadily.

Access to these markets allows Canadian producers to fetch higher prices—sometimes as much as US$8 per barrel more than in North American markets—which in turn supports investment and growth in Canada's energy sector. The uninterrupted operation of RIPET, even under duress, sends a powerful message to international partners about the reliability of Canada's supply chain. This stability is foundational to deepening trade relations and positioning Canada as a long-term solution for Asia's growing energy needs. The importance of this export capacity is set to grow further with the development of the adjacent Ridley Island Energy Export Facility (REEF), a joint venture between AltaGas and Vopak.

A Resolution and Lingering Questions

While AltaGas described the new five-year contract as a "fair agreement that benefits all stakeholders," specific details regarding wage increases, benefit enhancements, and the final resolution of the safe manning plan have not been made public. Such confidentiality is standard practice in privately negotiated collective bargaining agreements.

The successful end to the strike is a welcome development for Canadian propane producers and Asian customers who depend on the terminal's steady output. However, the incident at RIPET fits into a broader, more troubling pattern of labor disruptions at Canadian ports and critical infrastructure sites. These recurring disputes have sparked a national conversation about their impact on Canada's reputation as a reliable trading partner. Some industry groups have called for federal intervention to designate port operations as an essential service to prevent future shutdowns, a move staunchly opposed by unions who argue it undermines their fundamental right to collective bargaining. While this agreement resolves the immediate conflict at RIPET, the underlying tensions between labor and management in Canada's vital export sectors remain a subject of ongoing debate.