Kitimat finalizes LNG partnership

Kitimat LNG has posted another gain in the race to see whether it or WestPac Terminals will be the first to build a liquefied natural gas terminal and regasification plant on North America’s West Coast.

It locked up a partnership agreement April 26 with the Haisla First Nation, giving the aboriginal community an opportunity to buy equity in Kitimat along with gaining access to employment and business opportunities.

As part of a land-lease agreement between the Canadian government and Kitimat LNG, the Haisla will receive annual tax revenue and lease payments for the terminal land.

Kitimat LNG President Rosemary Boulton said in a statement that pending regulatory approval, her company will be the first project to market on the Pacific coast.

The plans include importing LNG from Pacific Basin suppliers to a terminal in the deepwater port at Kitimat.

Initial plans have called for handling 610 million cubic feet per day for eventual delivery by overland pipelines to Canadian and U.S. West Coast markets.

The WestPac proposal involves handling 350 million cubic feet per day. Financial negotiations are currently taking place and a regulatory application is in the final stages of being prepared.

—Gary Park