LNG backers try power play

BC government, Pacific NorthWest proponents want feds to approve project; federal environment minister says ball in PNW’s court

GARY PARK

For Petroleum News

Pressure is building on the Canadian government to move with haste to approve the Pacific NorthWest LNG project, with the British Columbia government and the consortium led by Malaysia’s Petronas saying that their patience is wearing thin.

British Columbia Natural Gas Development Minister Rich Coleman, having sent government officials to Ottawa in March, said his objective is to “overcome” delays in obtaining cabinet approval.

He said any remaining questions about the project’s environmental issues “can be answered completely and quickly. They have to be. Jobs for British Columbians for British Columbians should not be held up by unnecessary delays.”

Petronas has already taken its stand on a draft environmental assessment, notably conditions to protect salmon habitat and sea mammals, including one that could prevent construction of a liquefaction facility and tanker terminal from taking place around the clock near Prince Rupert.

Pacific NorthWest said several would “threaten the viability” of the project.

However, a company spokesman said the partnership remains committed to working with the Canadian government, area First Nations and local communities in pursuit of a “world class, environmentally sustainable LNG facility” on the British Columbia coast.

Taking heat

Democracy Watch, an independent lobby industry watchdog, warned that putting pressure on the government of Prime Minister Justin Trudeau could easily rebound.

A spokesman said the Liberal government is fully aware that a positive decision for Pacific NorthWest could easily be linked to lobbying.

For now, Canada’s Environment Minister Catherine McKenna said a cabinet decision on the C$12 billion infrastructure project near Prince Rupert - the cost estimate for the total scheme from upstream natural gas fields to the export facility is C$36 billion - “will be based on the best available science and on real and meaningful consultations” with all Canadians.

She insisted the crucial decisions now rest with Pacific NorthWest, while the government attempts to understand the consortium’s concerns.

Once acceptable answers are received, the 90-day clock will start running towards a cabinet decision, McKenna said.

Mild encouragement

The Port of Prince Rupert has intervened, telling protesters to end their six-month occupation of land on Lelu Island, the site of the export terminal.

“We respect the right of any individual or group to express their opinions concerning port development if it’s done in a safe and peaceful manner,” said Don Krusel, chief executive officer of the port. “However, raising makeshift structures does not meet that definition and has not been authorized.”

The port, as the administrator of federal land on Lelu Island, has reserved the right to require that existing structures be dismantled.

Lax Kw’alaams Mayor John Helin, whose community is part of the Coast Tsimshian, had previously sent a letter to federal officials announcing his First Nation would conditionally support the Lelu Island terminal. Other members of the First Nations have argued they were not consulted.

There has also been further progress by TransCanada to reach project agreements along the route of the company’s planned 540-mile, C$5 billion Prince Rupert Gas Transmission pipeline to Lelu Island.

It said agreements outlining benefits and commitments, including business opportunities, employment for aboriginals during construction, and financial benefits for the duration of the project’s lifespan have been signed with Takla Lake First Nation and McLeod Lake Indian Band.

The deals bring to 11 the number reached with First Nations and negotiations continue with an unspecified number of other Native communities.