11:36 AM EDT, 05/30/2024 (MT Newswires) -- AltaGas ( ATGFF ) and Royal Vopak overnight Wednesday gave final approval to build the $1.35 billion Ridley Island Energy Export Facility, a large-scale liquefied petroleum gas and bulk liquids terminal with rail, logistics, and marine infrastructure on Ridley Island, British Columbia.

The companies said their joint venture completed all major gating items, including front-end engineering design and a detailed Class III capital estimate. Site clearing work is more than 95% complete and with the required permits in hand, the project is expected to become operational near the end of 2026.

The projected gross capital cost of the joint venture is projected to be $1.35 billion, excluding governmental incentives and support, with annual EBITDA of $185 million to $215 million. Vopak and AltaGas ( ATGFF ) expect to fund their 50% pro-rata ownership independently without adding any debt to the joint venture.

As part of the decision, AltaGas ( ATGFF ) raised its 2024 capital expenditure guidance to $1.3 billion from $1.2 billion.

In a note on Thursday, National Bank said that it has raised the price target on AltaGas ( ATGFF ) to $35.00 from $33.00 while the outperform rating remains unchanged.

"Combined with the potential sale of its 10% stake in MVP and a total return opportunity of 19.4%, we reiterate our OP rating, as ALA remains well positioned to sustain its 5-7% annual dividend growth target on a self-funded basis," the bank noted.

AltaGas ( ATGFF ) shares were last seen down $0.06 to $30.25 on the Toronto Stock Exchange.

Price: 30.23, Change: -0.08, Percent Change: -0.26