Rough seas cause construction challenges at AltaGas export facility in B.C.
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CALGARY – Rough seas have been posing challenges for AltaGas Ltd. as construction on its propane and butane export terminal on British Columbia’s north coast nears completion.
The Ridley Island Energy Export Facility, or REEF, is 85 per cent complete and on track to come online before the end of March 2027, the company said Thursday as it reported its second-quarter results.
REEF’s capital cost estimate has risen by 12 per cent to about $1.5 billion.
“While onshore execution has been ahead of plan, in-water construction has proven more challenging due to maritime conditions and weather delays,” chief executive Vern Yu told analysts on a conference call.
“Since we started in-water construction at REEF in the fall of 2024, we have lost over 450 rig days due to extreme weather, extreme ocean swells and marine mammal activity. These lost rig days significantly exceeded any normal contingency plan. As a result, onshore efficiencies are no longer expected to fully offset higher in-water construction costs.”
The jetty and loading platform are 80 per cent complete at the site in Prince Rupert, B.C., and most of the remaining in-water work is set to wrap over the next six weeks.
“With the in-water phase of construction, the most complex and challenging part of REEF, nearing-completion, we’re highly confident that we’ll be able to meet a revised cost estimate and schedule,” Yu said.
Also Thursday, AltaGas reported $288 million in net income applicable to common shares, up from $175 million in the same quarter last year.
The profit amounted to 92 cents per diluted share for the quarter ended June 30, up from 58 cents per diluted share in the same period last year.
Revenue for the quarter totalled $3.8 billion, an increase from $2.84 billion in the second quarter of 2025.
AltaGas raised its guidance for capital spending for 2026 to $1.8 billion from $1.7 billion.
The company also said it now expects normalized earnings per share of $2.35 to $2.60, an increase of six per cent.
This report by The Canadian Press was first published July 30, 2026.
Companies in this story: (TSX:ALA)