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December 2015

Vol. 20, No. 52 Week of December 27, 2015

First Nation spurns British Columbia LNG plan

GARY PARK

For Petroleum News

Another LNG proposal for British Columbia has stumbled over First Nations opposition, despite the offer to build a liquefaction plant and tanker port on aboriginal land.

Of the 139 eligible members of the Tsawwassen First Nation in the Greater Vancouver region, 53 percent opposed plans that would have seen 3 million to 5 million metric tons a year of LNG processed annually on the First Nation’s territory.

Chief Bryce Williams encouraged members in November to endorse the proposal, arguing that potential benefits outweighed the lesser drawbacks.

He said the residents were uneasy about the environmental impacts of the project and the upstream natural gas extraction, adding he was proud of the way they handled the consultations.

“Throughout the whole process, I was somewhat on the fence, leaving the final decision up to the members,” he said. “I think it was the best choice and the best approach to take. Now that they have spoken I support the decision they made.”

Had the project gone ahead, the export facility would have started shipments of five to six tankers a month in 2022, although there was no confirmation that the venture had financing or negotiated sales commitments.

Revenue, not many jobs

Tom McCarthy, chief administrative officer of the Tsawwassen First Nation Economic Development Corp., said the project would have generated revenue for the community, but would not have provided as many jobs as a warehouse.

“With all the opportunities that are provided to us, there are gives and takes and pros and cons,” he said. “And the ability to move forward with logistics-based activity is something that will benefit members and future generations, just as well as LNG would have.”

British Columbia Premier Christy Clark was enthusiastic about the LNG plan as she clings to hope that her province will eventually have several operating schemes.

It is no longer clear what will happen to the 180 acres of industrial land that had been earmarked for the LNG facility, although the residents have voted to allow the First Nation’s executive council to negotiate leases of up to 60 years.

In the meantime, construction is underway on two shopping malls that will be the largest of their kind in British Columbia, while plans are being developed for a residential community.

Chris Hartman, chief executive officer of the TFNEDC, said that when the First Nation is ultimately developed over the next 10 to 15 years “it will truly represent a master-planned community where you can live, work, shop and recreate all within walking distance of your home.”






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