Prince Rupert's Energy Future: A New LPG Project Sparks Public Debate

PRINCE RUPERT, BC – June 24, 2026 – The future of Canada's western energy corridor is once again under the microscope as a new proposal for a major liquefied petroleum gas (LPG) export facility enters the public domain. Trigon Pacific Terminals Ltd. is seeking to construct a large-scale LPG storage and transload facility at the Port of Prince Rupert, a plan that is now open for public and Indigenous scrutiny following a notice from the Impact Assessment Agency of Canada (IAAC). The project, however, is more than a simple infrastructure proposal; it represents a critical juncture for a region grappling with economic transition, intense corporate competition, and the evolving role of Indigenous partners in major industrial development.

At the heart of the proposal is the C$750 million Trigon Pacific LPG Project, designed to receive propane and butane by rail, store it in tanks with a capacity of up to 158,000 cubic meters, and load it onto marine vessels for shipment to global markets. The federal assessment agency has invited public comments until July 24, 2026, a standard but crucial first step in a multi-phase review process that will determine if, and under what conditions, the project can proceed. The feedback gathered will help shape the scope of the assessment, highlighting the power of local and Indigenous knowledge in national-level decision-making.

A Port in Transition

The project is a strategic pivot for Trigon, a company whose history is deeply rooted in coal. Formerly the federal Crown corporation Ridley Terminals Inc., the facility has long served as a primary export point for coal from British Columbia and Alberta. With Canada's federal ban on thermal coal exports looming in 2030, Trigon is proactively diversifying to ensure its long-term viability. The plan cleverly proposes to redevelop a portion of its existing coal-handling lands—a brownfield site—and leverage its current deep-water jetty, minimizing the need for new land development and reducing the project's environmental footprint.

This repurposing strategy aligns with broader trends in the energy sector, where legacy infrastructure is being adapted for new commodities. Proponents argue this approach is not only cost-effective but also environmentally preferable to building entirely new greenfield sites. The project taps into Prince Rupert's significant logistical advantages: its status as North America's closest port to Asia and its direct connection to the CN Rail network. This positions the proposed facility to capitalize on strong international demand for Canadian LPG, particularly from markets in Japan, South Korea, and India, which are seeking stable energy supplies.

The Battle for the Gateway

Trigon's ambitions, however, are not unfolding in a vacuum. The Port of Prince Rupert is rapidly transforming into a crowded and competitive hub for LPG exports. AltaGas's Ridley Island Propane Export Terminal (RIPET) has been operational since 2019, and Pembina also operates a smaller facility. A major new competitor, the Ridley Island Energy Export Facility (REEF)—a C$1.35 billion joint venture between Royal Vopak and AltaGas—is already under construction and expected to begin operations by late 2026.

This competitive landscape is the backdrop for a significant legal and commercial conflict. Trigon is currently embroiled in a lawsuit against the Prince Rupert Port Authority (PRPA). The terminal operator alleges the PRPA is unfairly blocking its LPG project due to what it claims is an undisclosed exclusivity agreement that grants a monopoly on LPG exports to the REEF project. According to Trigon, this arrangement is a breach of its own long-standing lease rights to handle additional commodities. The Port Authority has contested these claims and filed a countersuit, setting the stage for a high-stakes legal battle over who controls access to this critical export gateway.

Indigenous Stakeholders at a Crossroads

Adding another layer of complexity is the crucial role of local First Nations. In a model of economic reconciliation, the Lax Kw'alaams Band and Metlakatla First Nation hold equity stakes in Trigon, a partnership established when the terminal was privatized in 2019. Leadership from both nations has publicly supported Trigon's LPG project, with one chief councillor highlighting it as a true partnership that promises "long-term benefits to our people, our land, and future generations." Another chief has praised the company's "shared prosperity model," which ensures their communities have a strong voice and stake in major projects within their territory.

This partnership is now at the center of the conflict with the Port Authority. The Metlakatla First Nation has withdrawn its consent for the competing REEF project, stating its initial approval was based on incomplete information. The Nation claims it was unaware of the PRPA's exclusivity agreement with Vopak and AltaGas when it was first consulted, and argues that this monopoly undermines Indigenous economic opportunities and Canada's trade diversification goals. This has created a paradoxical situation where Indigenous partners are championing one project while actively opposing its main competitor, not on environmental grounds, but on principles of fair competition and economic self-determination.

A Public Mandate for Scrutiny

As the corporate and legal dramas play out, the IAAC's public consultation process brings the focus back to the project's tangible impacts. The community of Prince Rupert, while benefiting from the economic boom driven by the port, also faces challenges, including strains on housing and local services. Environmental and safety concerns are paramount. A "propane release event" at the nearby AltaGas terminal in August 2025, which caused a temporary shutdown, serves as a stark reminder of the inherent risks of handling large volumes of volatile materials.

Under the federal Impact Assessment Act, the current planning phase is the first of five stages. Public comments will help the IAAC determine whether a full impact assessment is required and what key issues—from marine life and air quality to socio-economic effects—must be studied. The agency offers funding to support public and Indigenous participation, ensuring that diverse voices can contribute to the rigorous, evidence-based review that will ultimately decide the fate of the Trigon Pacific LPG Project.