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Another proposal: Kitsault
A Virginia-based businessman has added a curious twist to an increasingly tangled race by many companies who are chasing a role in exporting LNG from British Columbia.
Out of the blue, Krishnan Suthanthiran has announced Kitsault Energy, of which he is president, plans to explore the possibility of building a natural gas pipeline, LNG plant and export terminal at Kitsault, 500 miles north of Vancouver and 85 miles north of Prince Rupert.
His plan is to turn a ghost town that he once planned to use for eco-tourism into an energy hub, including an LNG terminal and possible oil refinery.
The proposal is based on 350 acres of industrial land, full access to hydro electricity and a deepwater port, but so far no details have been released on the source of gas supplies, the potential markets, ownership positions, who will finance a venture Suthanthiran estimates could cost C$20 billion to C$30 billion.
Former mining town Kitsault was once a molybdenum mining town that was abandoned in the 1980s when commodity prices slumped and has been left with about 90 occupant-ready family homes and 150 two- and three-bedroom condominium units.
Suthanthiran noticed a news story in 2005 about the town being for sale, called the same day and bought the town for a reported C$5.7 million.
Born in India, Suthanthiran moved to Canada, completed a masters degree in mechanical engineering at Ottawa’s Carleton University, took preliminary courses for a medical degree at the University of Toronto and has worked as an oncologist in the United States.
Over the past three decades, he has reportedly turned Best Medical International into a major manufacturer and distributor of health care products.
Discussions with First Nations Kitsault Energy is said to be involved in discussions with First Nations and has embarked on consulting with LNG partners, along with local, provincial and federal governments.
Suthanthiran, who is spending about C$1 million a year to maintain Kitsault, is convinced town is a logical location for his dream, largely because it has the necessary housing and infrastructure.
“Keep in mind, life is like a musical chair,” he said. “Some plans come, some plans don’t come. Our approach is, this is one of the plans we’re exploring.”
Jihad Traya, Calgary-based associate director of North American natural gas with the consulting firm of IHS CERA, said the challenge facing Kitsault is not the local of a terminal.
“The question is: Can you get the upstream and the downstream connected? Propose it is, but can you deliver the goods?”
—Gary Park
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