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- calendar_today October 29, 2026
Ongoing Port Strike Challenges Propane Exports in B.C.
AltaGas Ltd. is bracing for operational slowdowns at its propane export facility in northern British Columbia as the labour dispute at the Port of Prince Rupert continues. The strike, led by International Longshore & Warehouse Union members employed by Trigon Pacific Terminals, began on October 2 and has started to affect propane shipments bound for Asian markets.
Trigon Pacific Terminals Walkout Affects Key Export Operations
Trigon Pacific Terminals, responsible for rail logistics and berthing services at the Ridley Island Propane Export Terminal operated by AltaGas, has provided crucial support for the export of liquid petroleum gas (LPG). Although initial disruptions were minimal for AltaGas, the situation escalated when the Canada Industrial Relations Board recently ordered Trigon to end its use of contractors for certain tasks, including the handling of petroleum products exported by AltaGas.
AltaGas CEO Vern Yu addressed the changes during a conference call discussing the company’s third-quarter results, stating, "We're obviously very disappointed about this ruling because we don't believe that the ruling takes into account all case law in Canada and we're going to vigorously take all legal actions we can to reverse its decision." He added that, in the meantime, the company would implement modified mitigation plans, ultimately slowing vessel loading operations at the export facility.
Industry Concerns Over Labour Legislation
The dispute draws attention to broader challenges in Canada’s labour laws, with Bill C-39—currently progressing through Parliament—proposing amendments to the Canada Labour Code to clarify the authority of the federal minister to halt work stoppages in certain cases. AltaGas’s chief executive, Yu, noted that "We need to have a better method of how the government can help labour and companies deal with these actions."
Labour leaders in Ottawa have expressed strong opposition to the proposed Bill C-39, warning that changes could undermine workers’ right to strike and potentially lead to widespread job actions if enacted.
Propane Supply Strains as Asian Demand Grows
The port disruptions come at a time when Asian countries are seeking stable propane supplies, increasing demand for Canadian liquid petroleum gas as other global routes are compromised. Yu reported that exports to Asia through the Strait of Hormuz have fallen more than 70% since the onset of conflict involving the United States, Israel, and Iran in February, causing prices to rise in Asia's energy markets.
"The feedback we've already seen from these customers is they're highly disappointed in Canada's ability to provide these [liquid petroleum gases] because of this labour unrest," Yu stated, emphasizing the limited alternatives AltaGas has for exporting propane through facilities in the United States.
Financial Results and Outlook Amid Disruption
Despite the operational challenges, AltaGas reported financial momentum in its third-quarter results. The company posted a $21 million loss attributable to common shares for the quarter ended September 30, slightly improved from a $25 million loss a year prior. This equated to a loss of seven cents per diluted share versus eight cents the previous year. On a normalized basis, the company earned 29 cents per diluted share, a significant increase from four cents in the third quarter of 2025.
Quarterly revenue reached $3.43 billion, up from $2.60 billion the year before. AltaGas expects to close the year at the high end of its previously announced 2026 guidance ranges, projecting normalized earnings per share between $2.35 and $2.60, compared to $2.23 in 2025.
Looking Ahead
The ongoing port strike and its implications for propane exports highlight ongoing tensions between labour rights, federal intervention proposals including Bill C-39, and the challenges faced by Canada in meeting global energy demand—especially from Asia. AltaGas continues to monitor the situation while navigating both operational and legal responses to the Canada Industrial Relations Board's ruling.
Source: cbc.ca.
