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B.C. First Nations get LNG stake
Gary Park For Petroleum News
First Nations in northern British Columbia will get C$32 million from the provincial government to gain an equity stake in the proposed C$1.2 billion Pacific Trail LNG project.
B.C. Energy Minister Blair Lekstrom said the venture could generate millions of dollars in economic development benefits along with significant job opportunities for First Nations along the 280-mile route from Summit Lake to the planned natural gas liquefaction export terminal near Kitimat.
The project is a joint venture between Pacific Northern Gas and Galveston LNG, the parent company of Kitimat LNG, which is seeking support from gas producers in northeastern B.C. for a possible C$4.2 billion terminal to handle up to 5 million metric tons a year of LNG.
As an incentive to ratify the agreement, the government will provide an additional C$3 million lump sum to the First Nation Limited Partnership which will distribute the money to individual First Nations, 15 of which have so far ratified the deal.
Pacific Northern Gas Vice President Greg Weeres said that with the government agreement in place his company is now negotiating pacts with the First Nations that will establish their equity stake in the pipeline.
Share of economic value “When the First Nations make their investment in Pacific Trail Pipelines, they will become a partner just like any other partner and they will receive their share of the economic value created through the ongoing operation of the pipeline,” he said.
Haisla First Nation chief councilor Steve Wilson said it has taken 30 months to reach the agreement, which defines the relationship between First Nations, the B.C. government and the companies.
The deals are “the start of a new beginning that is based on time tested values expressed in a modern context,” he said.
David Luggi, tribal chief of the Carrier Sekani, said the First Nations have “channeled their right to use and occupation of land into nation-building investments in the mainstream economy.”
He said investment in Pacific Trail is proof that industry, First Nations and government can “work together on projects that will result in financial returns, gainful employment and associated opportunities” that will benefit First nations’ people for “generations to come.”
Wilson said the progress so far is a “great example of collaboration on interests (and) a testament to what can be achieved through leadership and the willingness to find solutions to difficult issues.”
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