PORTLAND, Ore. -

The Port of Portland has reached an agreement to house a Canadian company's propane terminal, importing the fuel by rail from Canada and exporting it by ship to Asia.

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.