Metlakatla First Nation has pulled its support for the Ridley Island Energy Export Facility (REEF), citing several grievances with the project.
Metlakatla notified both federal and provincial regulators that it has withdrawn its consent for REEF, saying its original consent was acquired unlawfully. The band also said it will oppose any future authorizations and permits that REEF requires for operations and expansion.
REEF is currently under construction and is a joint venture between Vopak and AltaGas to ship liquefied petroleum gas to other markets, primarily in Asia.
Because Metlakatla holds Aboriginal rights and title over the north coast of B.C., its free, prior and informed consent was required, as the project could affect those rights.
Metlakatla Chief Robert Nelson said the failed partnership is new for the band, as the Prince Rupert Port Authority (PRPA) has granted Vopak and AltaGas a monopoly over LPG projects on the north coast.
“We have always found a way to build these partnerships while having our rights respected-until now. In 2015, the Principal Report Authority gave Vopak the powers to arbitrarily veto any other project proposing to export bulk energy products, such as liquefied petroleum gas through the port,” said Nelson.
“The veto power, which is now shared with AltaGas, creates an export monopoly over petroleum products. Such as LPG.”
He added the veto has caused one of Metlakatla’s investments to be rejected.
“We only discovered the existence of this export monopoly in 2023 when PRPA said its agreement with Vopak was the reason it was turning down an application by Trigon Pacific Terminals Limited to ship LPG through the port. Metlakatla is an equity owner of Trigon.”
In a statement to Vista Radio, AltaGas said it was disappointed by Metlakatla’s description of the relationship as negative after many years of collaboration and partnership.
However, the company said because Metlakatla gave its consent in 2015, it is not legally or factually accurate to withdraw consent over 10 years later.
“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. Our federal approvals have not been challenged by the Metlakatla within the statutory time frame required,” AltaGas said.
“If a project could receive full consent and regulatory approval, only to have that consent withdrawn years later with government support allowing that change, it would fundamentally undermine the rule of law and severely damage Canada’s investment climate across industries.”
Metlakatla accused the PRPA of withholding crucial information that would have changed its support of the project.
“The PRPA’s failure to disclose that it had given an exclusivity monopoly with veto rights to Vopak in 2015 and its subsequent failure to disclose those arrangements during the consultation process for the REEF project violates our constitutionally protected rights,” Nelson said.
Metlakatla filed a civil claim in July 2024 relating to the exclusivity provisions, which is still before the Supreme Court.
The PRPA said the exclusivity provisions were implemented to ensure stability for proponents and investors.
“The Prince Rupert Port Authority has provided time-limited exclusive rights for the export of LPG to the Ridley Island Energy Export Facility, a joint venture between Vopak and AltaGas, that will facilitate the export of LPG, methanol and other bulk liquids,” the PRPA said.
“The REEF project has concluded federal and provincial regulatory review and permitting processes and is currently under construction, scheduled to be in operation in Q4 2026,” the PRPA said.
The provision of exclusive rights for specific cargoes, according to the PRPA, enables the certainty required to advance large capital projects, secure investment in vital trade infrastructure and fulfill PRPA’s mandate of enabling Canadian trade.
However, Metlakatla said that the exclusivity does not create stable conditions but rather harmful ones.
“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 overseas and, in the process, taking away jobs from Canadians,” the band said.
“Canadian energy producers want to ship more Canadian propane to Asia-Pacific customers, but the export monopoly is limiting their access to this premium market, and some producers are now forced to sell their product at a discount in the U.S., increasing their vulnerability to U.S. trade action.”
