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Providing coverage of Alaska and northern Canada's oil and gas industry
November 2015

Vol. 20, No. 48 Week of November 29, 2015

Aboriginal plans for British Columbia LNG

Tsawwassen First Nation looks at building terminal capable of handling up to six tankers a month; no costs or gas feedstock source

GARY PARK

For Petroleum News

British Columbia aboriginals have their sights fixed on another entry point into the LNG industry.

The Tsawwassen First Nation, a community of 286 south of Vancouver, is exploring the prospect of building a terminal capable of loading up to six tankers a month and exporting 3 million to 5 million metric tons a year of LNG.

It is counting on up to 1,000 jobs during construction and 50 to 100 permanent workers to operate the facility.

Beyond aiming for a startup in 2022, the Tsawwassen have given no estimates of capital costs, where the gas feedstock would be sourced and what markets it has in mind.

However, it has indicated some of the LNG could be used to fuel vehicles accessing the port and as a gas distribution facility for Tsawwassen members.

The First Nation said gas would be delivered to the liquefaction plant through a six-mile extension of an existing pipeline.

In 2009, the Tsawwassen ratified the first urban First Nation Treaty in Canada, obtaining self-government jurisdiction and landownership on a renewed lease land base.

The First Nation pledged to uphold the strictest environmental practices from the extraction of natural gas to the lading of LNG on to tankers.

Tilbury construction

The announcement coincides with the start of construction on an expanded Tilbury LNG facility 11 miles away by FortisBC, which has committed more than C$50 million of the C$400 million project to local contractors, generating more than 65,000 hours of employment and offering apprenticeship training to First Nations.

A year ago, the Malahat First Nation on Vancouver Island endorsed plans by Steelhead LNG to build a 75-mile pipeline from Washington state, 45 miles running under Puget Sound to a floating LNG facility.

Steelhead has retained Williams Cos. to seek approval from the U.S. Federal Energy Regulatory Commission and Canada’s National Energy Board for the pipeline.

Steelhead Chief Executive Officer Nigel Kuzemko said his company is striving to strengthen ties with First Nations along the pipeline route, giving them a chance to “share in the economic benefits of the Canadian portion of the project.”

The company plans to send fuel supplies from the plant to a separate project planned for Vancouver Island by the Huu-ay-aht First Nations.

The other major First Nation player in LNG is the Haisla community, which hopes to use land earmarked for the stalled Enbridge Northern Gateway crude bitumen export scheme to build an LNG terminal, using its rights and title to the property.

The Haisla hope to acquire up to five floating LNG terminals near Kitimat.

Enbridge said it is open to holding discussions with the Haisla on LNG projects related to its proposed marine terminal, but nothing more has been heard about the venture.






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