British Columbia in LNG Deal with First Nation

by Ship & Bunker News Team
Monday September 17, 2012

The government of British Columbia has reached a deal with the Haisla First Nation allowing for the creation of a liquefied natural gas (LNG) plant near Kitimat, Reuters reports.

Under the agreement, the Haisla will lease or buy land on the west side of the Douglas Channel and work with an industry partner to develop a gas-liquefaction plant and export terminal.

The Haisla already has a stake in the BC LNG Export Co-operative LLC, which received an export license from federal regulators earlier this year, and it is working with Royal Dutch Shell Plc on a multi-billion-dollar LNG Canada facility.

The Haisla and the British Columbian government did not say whether the new deal is for the Shell plant.

"This gives the Haisla and associated projects the certainty needed for the LNG proposals and other projects coming forward for our territory," Ellis Ross, Chief Councillor of the Haisla Nation, said in a statement.

Altogether, five gas-liquefaction projects have been proposed along BC's northern Pacific coast.

The Canadian federal and provincial governments have clashed with some of the First Nations over issues around oil and gas development in the area, with the Union of B.C. Indian Chiefs speaking out against planned pipelines to bring tar sands oil to the Kitimat area.

Earlier this year, the Gitga'at nation said the Canadian response to an oil spill raised questions about the government's ability to honor its cleanup obligations.

Ship & Bunker News Team
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