The Metlakatla First Nation has withdrawn its support for the Ridley Island Energy Export Facility (REEF), a $1.35-billion project in British Columbia, citing concerns over the Prince Rupert Port Authority's decision to block their diversification plans. This move has escalated tensions, as Metlakatla, a co-owner of the coal exporter Trigon Pacific Terminals Ltd., feels excluded from the propane and butane export monopoly on Ridley Island.
The project, a joint venture between Calgary-based AltaGas Ltd. and Netherlands-based Royal Vopak NV, plans to begin exports of liquefied petroleum gas to Asia by the end of 2026. However, Metlakatla argues that the port authority's exclusive rights granted to Vopak in 2015 and the subsequent joint venture with AltaGas have frozen out the First Nation and other Trigon partners from diversifying into different commodities.
The dispute arose when the port authority rejected Trigon's diversification plans to protect the export monopoly on liquefied petroleum gas. Metlakatla's elected chief councillor, Robert Nelson, stated that they have withdrawn their consent for REEF and notified federal and provincial regulators, including the Impact Assessment Agency of Canada, Canada Energy Regulator, and B.C.'s Environmental Assessment Office.
Metlakatla filed a lawsuit in B.C. Supreme Court, alleging the port authority breached its constitutional duties to consult and accommodate them. A judge ruled in their favor, allowing the lawsuit to proceed. Trigon also filed a separate lawsuit, claiming the port authority reneged on a leasing arrangement for export diversification.
AltaGas, the operator of REEF, has awarded Indigenous-owned businesses about $350 million in contracts and services. However, Metlakatla expresses disappointment over the negative characterization of their relationship with AltaGas. Randy Toone, an executive vice-president, defended the project's approvals and regulatory process, emphasizing the importance of the rule of law.
The Port of Prince Rupert, positioned as a multicommodity export gateway, has been criticized for its exclusive rights procedures. Metlakatla argues that the port authority's actions restrict Canada's trade expansion with Asia, limiting Canadian energy producers' access to the premium market. The situation highlights the challenges of balancing economic development and Indigenous rights, leaving a question mark over the future of the project and the potential for further legal battles.
