Canada: B.C., Kitselas First Nation ink LNG deal

The Kitselas First Nation has signed benefits agreements with the British Columbia government, formally backing up proposed LNG export facilities on B.C.’s north coast.

The Kitselas LNG benefits deal “provides funding for community and economic development projects, and funding and land transfers” linked to the construction and operation of proposed LNG export facilities, including Pacific Northwest LNG and LNG Canada, according to a joint statement issued on Thursday.

Additionally, the coastal fund benefits agreement “defines ongoing financial benefits for the Kitselas First Nation prior to and during export operations, including those linked to PNW LNG, LNG Canada and any additional LNG export facilities that may be built in the Prince Rupert or Kitimat areas,” the statement said.

The Kitselas First Nation has also entered into a reconciliation agreement with B.C.

This deal strengthens the government-to-government relationship, builds on a treaty agreement-in-principle signed in 2015, and supports completion of a final treaty.

The reconciliation agreement includes funding for a community wellness process to address the effects of industrial development on the Kitselas community, the statement said.

The PNW LNG project, located in the District of Port Edward, is pending a final investment decision by Malaysian energy giant Petronas and its venture partners: Sinopec, JAPEX, Indian Oil Corporation and PetroleumBRUNEI. The partnership is currently conducting a full evaluation of the PNW LNG project before any final investment decision is announced.

LNG Canada is a joint venture company comprised of Shell Canada Energy, a unit of the Hague-based LNG giant Shell, and affiliates of PetroChina, Korea Gas Corporation and Mitsubishi Corporation. The joint venture is proposing to build an LNG export facility near Kitimat.

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