PTP Inks Deal for Pipeline Component of Kitimat LNG (Canada)

Pacific Trail Pipelines Limited Partnership (PTP LP), the First Nations (PTP) Group Limited Partnership (FNLP), and the Province of British Columbia announced a revised benefits agreement for the proposed 463-kilometre Pacific Trail Pipeline Project (PTP Project) that will ensure First Nations receive immediate and long-term benefits from the PTP Project.

“These agreements secure significant financial and economic benefits for First Nations who play a vital role in one of British Columbia’s leading LNG projects,” stated Chief Raymond Morris, a member of the FNLP Executive Committee. “It not only establishes that industry and First Nations can cooperate in the successful development of major projects, it also points to how it can be done.”

The agreement between PTP LP and FNLP provides up to $200 million in financial benefits over the life of the PTP Project to the FNLP First Nations whose traditional territories are located along the proposed PTP pipeline route. In addition, the agreement will also provide substantial business and training opportunities for these First Nations.

“This benefits agreement represents another milestone for the PTP and Kitimat LNG projects,” said Janine McArdle, Senior Vice-President Apache Corporation and President of Pacific Trail Pipelines Management Inc. “The support of First Nations for our projects continues to be tremendous and we look forward to building on these integral relationships as we move forward.”

The following 15 First Nations are limited partners in FNLP: the Haisla Nation, Kitselas First Nation, Lax Kw’alaams Band, Lheidli T’enneh First Nation, McLeod Lake Indian Band, Metlakatla First Nation, Nadleh Whut’en First Nation, Nak’azdli Band, Nee Tahi Buhn Indian Band, Saik’uz First Nation, Skin Tyee First Nation, Stellat’en First Nation, Ts’il Kaz Koh First Nation, West Moberly First Nations and Wet’suwet’en First Nation.

“Chevron Canada wishes to commend all parties for achieving the revised benefits agreement. We look forward to developing long-term relationships built on mutual respect and trust with First Nations, local communities and federal and provincial governments,” said Jeff Lehrmann, president, Chevron Canada Limited.

The PTP Project is a proposed 463-kilometre pipeline that will carry natural gas from Summit Lake, 55 kilometres north of Prince George, to the proposed Kitimat LNG™ facility on B.C.’s north coast.

“BC has an once-in-a-lifetime opportunity by exporting natural gas to Asia and we want to make sure First Nations are part of this industry’s future,” said Premier Clark. “This announcement creates a valuable model for industry proponents who seek to work in partnership with First Nations while ensuring their communities benefit from the growth of our natural gas sector.”

PTP LP is made up of the same two partners that comprise the Kitimat LNG project – Apache Canada Ltd. and Chevron Canada Limited. Havlik Metcs Limited and Farris, Vaughan, Wills & Murphy LLP and Wolrige Mahon LLP are advisors to FNLP.

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LNG World News Staff, February 26, 2013; Image: Apache Canada