British Columbia signs more LNG benefits agreements

The provincial government of British Columbia in Canada signed three LNG benefits agreements with First Nations related to TransCanada’s proposed Coastal GasLink pipeline.

The Coastal GasLink is a 670-kilometre liquefied natural gas pipeline from the Dawson Creek area to the west coast of B.C. The pipeline will transport natural gas to the proposed LNG Canada facility near Kitimat.

The government signed the benefits agreements with the McLeod Lake Indian Band and West Moberly First Nations, according to two statements issued on Wednesday.

Under the terms of the agreement, the McLeod Lake band will receive an initial payment of $338,000. If the Coastal Gaslink pipeline proceeds to construction, McLeod Lake will receive an additional payment of approximately $1.69 million and a further $1.69 million once the pipeline goes into service.

McLeod Lake will also receive a yet-to-be determined share of $10 million annually when service on this pipeline begins.

Additionally, the McLeod Lake Indian Band signed a second benefits agreement regarding the Prince Rupert Gas Transmission project, a proposed 900-kilometre liquefied natural gas pipeline to deliver natural gas from the Hudson’s Hope area to the proposed Pacific NorthWest LNG facility near Prince Rupert, BC government’s statement reveals.

Under this agreement, the First Nation will receive an initial payment of $295,000. If the PRGT project proceeds to construction, McLeod Lake will receive $1.475 million and a further $1.475 million once the pipeline goes into service and a share of $10 million annually when service begins.

As part of its agreement with West Moberly, the province will make an initial payment of $201,000.

If the pipeline proceeds to the construction phase, West Moberly will receive a payment of approximately $1 million, with a further $1 million once the pipeline is in service. West Moberly will also receive a yet-to-be determined share of $10 million a year in ongoing benefits when this occurs.

The First Nation will also benefit from the Province’s recent investment of $500,000 in skills training funding through the Residential Building Maintenance Worker Apprenticeship Program and the Moberly Lake academic program.

LNG World News Staff