The port announced the agreement Tuesday with Pembina Pipeline Corp. of Calgary, Alberta.
The port said the $500 million terminal could go online in 2018 and handle 37,000 barrels a day of propane. Pembina said the propane is derived from natural gas.
The development is another instance of proposals to export fuels through the Northwest to Asia.
In a statement, port Executive Director Bill Wyatt said it has been choosy about such deals, “saying ‘no’ to coal and ‘not now’ to crude by rail.”
He called propane a “clean and safe alternative fuel” and Pembina an experienced company committed to safety.