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First nation involved in competing LPG export proposal
Recent aerial of AltaGas REEF site shows current state of construction with the first of three massive accumulator vessels in place. Photo: AltaGas
By Resource Works
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The Metlakatla First Nation is withdrawing its support for a new propane export terminal at the Port of Prince Rupert.
In a letter to the Prince Rupert Port Authority, Metlakatla Chief Robert Nelson states that the Metlakatla no longer supports the Ridley Island Energy Export Facility (REEF) project – a $1.35 billion project that is already 70% complete.
“Metlakatla holds Aboriginal rights and titles in the Port of Prince Rupert,” Nelson asserts. “The project is in our traditional territory.
“In 2023 Metlakatla consented to the project, but our approval was obtained in circumstances that violated our Aboriginal rights. Be advised that Metlakatla withdraws its consent and approval of the project.”
The letter does not explain what the circumstances are that constitute a violation of its aboriginal rights.
But a BC Supreme Court decision released Monday explains that the Metlakatla feel they were not properly informed during consultations that led to the First Nation granting their support for the REEF project.
The competing interest
The REEF project is a 50-50 joint venture between AltaGas and Royal Vopak. When complete, it will have the capacity to export 1.7 million tonnes per annum of propane and butane to Japan, South Korea and China.
The Metlakatla, through its equity in Trigon Pacific Terminals, are involved in a competing liquid petroleum gas (LPG) export proposal.
The Metlakata and Lax Kw’alaams own 10% of Trigon Terminals – equity obtained when the federal government sold the Ridley Island coal terminal to two American private equity firms: AMCI Group and Riverstone Holdings.
Detailed look at construction progress at AltaGas REEF, featuring the newly installed accumulator vessel—the first of three planned for the facility. Photo: AltaGas
Trigon has been trying to diversify its operations by developing a liquids export terminal. In June 2025, Trigon announced a $750 million final investment decision on a proposed 2.5 million million tonnes per annum LPG export facility.
The announcement may have been premature, however, given that Trigon doesn’t have permission from the Prince Rupert Port Authority to build another LPG terminal.
The Port Authority signed an exclusivity agreement with REEF’s developers — AltaGas and Royal Vopak — that excludes any competing projects.
Trigon has been lobbying to get the port authority to revoke that agreement, but with little success.
In a claim filed with the BC Supreme Court, the Metlakatla argue the port authority failed to disclose the exclusivity agreement with the REEF project developers and, as a consequence, it has “has lessened the value of Metlakatla’s ownership interest in Trigon.”
‘Not factually or legally accurate’
AltaGas argues that the Metlakatla’s sudden withdrawal of support has no legal consequence.
“It’s important to be aware that the Metlakatla First Nation’s ability to ‘withdraw’ its consent for the REEF project and federal approvals that REEF obtained years ago, is not factually or legally accurate,” Randy Toone, executive vice president and president of Midstream at AltaGas, said in a written statement.
“Our federal approvals have not been challenged by the Metlakatla within the statutory time frame required.”
Last year, the Metlakatla filed a claim with the BC Supreme Court seeking declaratory relief and an order quashing the Crown approval of the REEF project.
The Metlkatla later amended the claim, and no longer sought an order to quash the Crown approval. But it did seek accommodation.
The port authority sought to have the claim struck before trial, which was what the decision released Monday was all about.
The Metlakatla argued that the port authority did not disclose the exclusive export agreement it had signed with the REEF proponents.
“PRPA failed to consult with Metlakatla about the Export Monopoly and did not disclose to Metlakatla that it had granted the Export Monopoly before Metlakatla completed the benefits agreement with Vopak,” the court decision states, in summarizing the Metlakata’s argument.
“Consequently, PRPA failed to take any steps to assess how the Export Monopoly would potentially affect Metlakatla’s aboriginal interests.”
The recent court decision was mainly over jurisdiction, as the port authority had argued it was a matter for the federal court, not the BC Supreme Court, and should be struck.
The court denied that application and determined that the Metlakatla may have a case to seek damages. The ruling released Monday basically allows a claim for damages to proceed.
Investment climate risk
The Metlkatla’s withdrawal of support for a project it originally supported sends a bad signal to investors, AltaGas says.
“If a project could receive full consent and regulatory approval – only to have that consent withdrawn years later with government support allowing that change – it would fundamentally undermine the rule of law by injecting uncertainty and retroactive risk into legally approved investments,” Toone said.
“Such a precedent would severely damage Canada’s investment climate across industries, as long‑term capital depends on stability, predictability, and confidence that once approvals are granted, they will be respected.”
Metlakatla makes its case
In a statement released this morning, Chief Nelson explained why the Metlaktla had taken the “regrettable but necessary step” of withdrawing support for the REEF project.
The nation only became aware of the export monopoly granted to REEF’s developers in 2023, he said.
“If we had learned about the export monopoly during the REEF consultation process, we would not have consented to the REEF project,” Nelson said.
“This export monopoly is harming the Canadian economy at a moment when ‘Building Canada’ is an urgent national priority.
“It is impeding competition and blocking Canadian investment in the energy sector, thereby limiting Canada’s ability to diversify trade to overseas markets, and in the process, taking away jobs from Canadians.”
Unless there is a resolution, Nelson said the Metlakatla will continue to oppose “any further authorizations and permits that AltaGas and Vopak may require to operate and expand the REEF facility.”
Trigon Terminals, meanwhile, is contesting the export monopoly in court, in the hope of getting its own LPG project approved.
“Removing the roadblock to Trigon’s project would immediately unlock over $2 billion in new private-sector investment, both in the project itself and new gas processing facilities upstream in British Columbia and Alberta,” Nelson said.
“At least two upstream energy projects are stalled because Trigon’s LPG proposal is being blocked.”
He added that the Metlakatla are still “eager to talk with proponents about developing projects to expand the Port of Prince Rupert.”
“Despite this export monopoly, we see opportunities to build new business partnerships and seize this historic opportunity to develop this strategic trade gateway in an open and transparent manner to Build Canada. ”
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