Chemtrade Logistics Income Fund has announced a continued operation of its crucial chlor-alkali facility in North Vancouver, British Columbia. The company revealed on April 10 that it has entered into a non-binding letter of intent (LOI) with the Vancouver Fraser Port Authority to extend its land lease until December 31, 2044.

The existing land lease, which covers a portion of the North Vancouver site, was set to expire on June 30, 2032. The proposed extension will maintain similar terms, notably including a restriction on the receipt, manufacture, storage, and distribution of liquid chlorine commencing July 1, 2030, on the leased portion of the land. The remaining part of the facility's land is owned outright by Chemtrade.

In tandem with the lease extension efforts, Chemtrade is actively preparing the necessary documentation to submit a rezoning application to the District of North Vancouver. This rezoning is pivotal for the company's long-term plans for the site.

If the rezoning application receives the green light, Chemtrade will be able to continue its production of liquid chlorine on its owned portion of the land beyond the 2030 deadline. Furthermore, the approval would pave the way for the implementation of significant safety-enhancing capital improvements at the facility.

Scott Rook, President and CEO of Chemtrade, emphasized the strategic importance of the North Vancouver plant, stating, "We have been in discussions with the Port of Vancouver and the District of North Vancouver to secure a pathway to continued operations of this strategic asset. We are pleased to provide a progress report on our North Vancouver facility, which plays such a critical role in supplying millions of Canadians with clean drinking water."

Rook highlighted the facility's significant contribution to the region's water treatment infrastructure, estimating that the plant provides over 70% of the liquid chlorine available in Western Canada, specifically British Columbia and Alberta. Liquid chlorine is an essential component in the treatment of municipal drinking water, ensuring its safety and potability.

"Through our extensive engagement program, we have worked to ensure there is a broad understanding of our commitment to safety and responsible operation, as well as the risk to safe drinking water for millions of Canadians should we no longer be able to produce liquid chlorine," added Mr. Rook. He underscored the facility's long-standing safe operation since 1957 and reiterated that the planned enhancements, contingent on rezoning approval, are aimed at further bolstering safety, reliability, and reducing potential risks.