B.C., First Nations sign PNW LNG benefits agreements

The Canadian province of British Columbia reached multiple agreements with the Lax Kw’alaams Band and the Metlakatla First Nation securing economic benefits from the proposed Pacific NorthWest LNG project.

Lax Kw’alaams Band signed LNG benefits agreement, a Coastal Fund benefits agreement and a pipeline benefits agreement, according to the statement by the province.

Upon final investment decision by the Petronas-led Pacific US$27 billion project, a predetermined amount of funds will be released from the trust, with the remaining balance available once facility construction begins.

A total of 1,942 hectares of Crown land will also be transferred to the Lax Kw’alaams Band as part of the benefits detailed in the agreement.

The Coastal Fund benefits agreement defines ongoing benefits for the Lax Kw’alaams Band during export operations, including those linked to PNW LNG and any additional LNG export facilities that may be built in the Prince Rupert area.

In addition to benefits identified under the LNG benefits agreement and Coastal Fund benefits agreement with the province, PNW LNG has executed an impact benefits agreement with both the Lax Kw’alaams First Nation and the with the Metlakatla First Nation which will serve as the foundation for long-term, mutually beneficial partnerships.

The agreements include access to employment, training and capacity funding, financing and cultural support, participation in ongoing environmental monitoring, First Nations business opportunities in the construction and operational phases of the project and annual payments based o the production of the LNG facility.

As well, the Lax Kw’alaams Band signed an agreement related to TransCanada’s Prince Rupert Gas Transmission line, the connecting pipeline for PNW LNG.

The LNG benefits agreement with the Metlakatla First Nation provides financial benefits including a trust fund and capital for road improvements and infrastructure.

The agreements provide benefits based on specific steps in the development of a coastal LNG industry. They provide initial funding to the Metlakatla First Nation for community and economic development projects, as well as social initiatives, linked to the construction and operation of Pacific NorthWest LNG

Previous to the latest agreements, British Columbia, the Lax Kw’alaams Band, the Metlakatla First Nation and the government of Canada signed an environmental monitoring committee agreement which outlines how all parties will collaborate to facilitate environmental oversight over the lifetime of PNW LNG.

The PNW LNG project, located in the district of Port Edward, is pending a final investment decision by Petronas and their venture partners, Sinopec, Japex, Indian Oil Corporation and PetroleumBrunei.

Collectively, this partnership is conducting a full evaluation of the PNW LNG project before any final investment decision is made.

The proposed facility, to be located on Lelu Island within the district of Port Edward, will comprise an initial development of two LNG trains of approximately 6 million tons per annum each, and a subsequent development of the third train of approximately 6 mtpa.