Steelhead, 7G join forces on LNG projects supporting infrastructure

Steelhead LNG and Seven Generations Energy of Canada on Monday signed an agreement to explore midstream supply chain infrastructure that would link natural gas resources to Steelhead proposed LNG export projects on Vancouver Island. 

The two companies also agreed to engage Aboriginal groups during the development of the infrastructure, according to a joint statement.

Steelhead LNG proposed to build the Malahat LNG project on the Bamberton Industrial Lands, south of Mill Bay and the Sarita LNG project at Sarita Bay at the southern end of the Alberni Inlet.

The arrangement, through which Seven Generations has also acquired a minority interest in Steelhead LNG, is expected to provide potential new markets for Seven Generations’ production as well as increased certainty of natural gas supply for Steelhead LNG, the joint statement reads.

“This agreement with Seven Generations is a positive step toward realizing our sustainable and economic delivery model for LNG. At the same time the economic circumstances are challenging and there is more work to do and milestones to achieve for our projects to succeed,” said Steelhead LNG CEO, Nigel Kuzemko.

The company is additionally looking to refine its at-shore LNG concept design that uses floating LNG production and storage units moored to marine jetties. The concept can be replicated enabling scalable production capacity at Steelhead LNG’s proposed facilities.

The National Energy Board has granted Steelhead LNG five licenses to export in the aggregate of up to 30 million tonnes of liquefied natural gas per year for 25 years.

Steelhead LNG is also exploring ways of accessing newly emerging LNG markets such as the conversion of international shipping vessels to LNG from bunker fuel and diesel, Steelhead LNG said.