Haisla celebrate incremental treaty pact with BC, see more traditional lands returned

The Haisla Nation celebrated the signing of an incremental treaty agreement with the British Columbia government Tuesday at the Haisla Recreation Centre in Kitamaat Village. The treaty will see the return of Haisla lands on the shore of Douglas Channel of Lots 305 and 306 south of the Kitamaat Village, designated Indian Reserve #2 and Indian Reserve #3, also known as the Walsh Reserve, thus connecting the two reserves.

In a news release, the BC Ministry of Aboriginal Relations and Reconciliation said that under the agreement, approximately 120 hectares of Crown land will be transferred to the Haisla Nation.

The land lies in the heart of the Haisla Nation territory and will support the community’s goal of expanding housing, commercial and public space for its members, and opening new business opportunities.

The release went on to say, “The agreement continues the productive relationship between the Haisla Nation and B.C., which is furthering economic development opportunities and improving social conditions.”

Map from the treaty agreement showing the lands transferred back to the Haisla Nation. (Ministry of Aboriginal Relations and Reconciliation)
Map from the treaty agreement showing the lands transferred back to the Haisla Nation. (Ministry of Aboriginal Relations and Reconciliation)

It took decades for the land to be returned to the Haisla.

At the ceremony, Allan Donovan, the Haisla’s lawyer said, “We are here to celebrate the achievement of something that should have happened when the Haisla reserves were set aside in 1889. At that point, the reseve commissioner noted the Haisla reserves were the smallest and least desirable in the whole nation.

Allan Donovan began working for the Haisla as a young lawyer and is still representing the Nation. (Robin Rowland/Northwest Coast Energy News)
Allan Donovan began working for the Haisla as a young lawyer and is still representing the Nation. (Robin Rowland/Northwest Coast Energy News)

“But he left it at that, but in the years and decades afterward, the Haisla sought to extend their reserve holdings and their lands and have done so with an increasing degree of success.

“The actual negotiations to see the lands returned actually started over 60 years ago with limited success. But the Haisla are always persistent when it comes to issues of land, when it comes to issues of justice.

“In the 25 years since then there have been a number of attempts over the years This time with Haisla leadership and cooperation from the government of British Columbia, that dream has become a reality. The land has been returned to the rightful owners, joining up these two reserves.

Building goodwill

The ministry said the British Columbia introduced incremental treaty agreements “to help speed up the treaty process by building goodwill among parties and bringing the benefits of treaty faster to First Nations. These agreements also provide increased certainty on the land base and with natural resource development.”

At the ceremony, John Rustad, the Minister of Aboriginal Relations and Reconciliation said that so far the province has signed 18 incremental treaty agreements with various BC First Nations.

“This is a relationship building step between the Haisla Nation and the province, to lay foundations for things we can continue to do in the future,” Rustad said, “Over the past number of years now the Haisla and the province have made great strides and have a very good relationship (at least I believe a very good relationship, … As we move forward in developing our relationship.”

BC Minister of Aboriginal Relations and Reconciliation John Rustad presented Chief Counsellor Ellis Ross with a certificate commemorating the incremental treaty agreement (Robin Rowland/Northwest Coast Energy News)
BC Minister of Aboriginal Relations and Reconciliation John Rustad presented Chief Counsellor Ellis Ross with a certificate commemorating the incremental treaty agreement (Robin Rowland/Northwest Coast Energy News)

Rustad noted that representatives of the Shell-led LNG Canada project, Chevron and AltaGas were at the Recreation Centre to witness the ceremony.

“It’s about embracing those opportunities and ways to find a balance between environment and economics. No one has been better than the Haisla in being able to do that, working with the companies working with the province, working with their neighbors to create opportunity.

“It is through hard work and through partnerships that is truly a path forward toward building a prosperous future.

“We are very proud as a province to be working with the Haisla as a partner,” Rustad said. “We have our difference, we have things we may not agree on but I also believe very strongly that as we work together the steps to ensure prosperity for all of British Columbia but also especially for the prosperity of the Haisla nation This agreement between the Haisla and the province is an example of some of the things we can do right and we can try to correct the situations that have existed for such a long period of time, to find a way to build a prosperous future.”

Stop dwelling on the past

Ellis Ross, the Haisla elected Chief Counsellor told the Haisla and their guests. “It’s time to stop dwelling on the past and start building the future. All the pieces are there Everybody wants to help us get to a better place. Our partners from LNG Canada are here.Chevron is here. It’s everyone working together for the future, to bring the pieces of the puzzle to ensure our future generations.

“We don’t have to beg to be part of the BC agenda. We should be equal particpants.in everything in our territory. That’s what we should be focused on Stop getting distracted with the minor little differences, where infighting stopped us from the promises that have been promsed us for the past forty or fifty years.”

He said the Haisla started working with the Christy Clark government in 2009.

“We both took different approaches to our relationship We both agreed there is a common goal to be achieved if we just put aside our differences. I am not sure how many people know this but the provincial government actually helped us acquire the hospital lands (the site of the old “pink lady” hospital across from the City Centre mall)

“In terms of the water lot that the Haisla own, we’re the only First Nation in Canada that owns water lots and that ‘s because of the provinical government support for us.”

Chief Counsellor Ellis Ross presented BC Minister of Aboriginal Relations and Reconciliation John Rustad with a painting of two paddles, representing how people have to work together to accomplish goals. (Robin Rowland/Northwest Coast Energy News)
Chief Counsellor Ellis Ross presented BC Minister of Aboriginal Relations and Reconciliation John Rustad with a painting of two paddles, representing how people have to work together to accomplish goals. (Robin Rowland/Northwest Coast Energy News)

He also thanked the province for helping the Haisla lease land with an option to purchase near Bish Cove (Beese in traditional Haisla terminology) and worked with the federal government so that the Minette Bay lands could also be added to the reserve lands. He said Haisla staff consult on a regular basis with provincial officials.

“Our staff are working on permits for the benefit of the Haisla as well as everybody else. I think the Haisla are a working definition of what reconciliation actually means and it matters to the average Haisla citizen…

“There are different definitions out there about what reconciliation means. Everyone has a different definition Right how BC and the Haisla are proving that reconciliation is possible without getting into politics.

“It’s agreements like this what we’re talking about today that truly set the stage for the future of the Haisla people.

“We’re not going to be around in a hundred years but in a hundred years the future if Haislas are still talking about the same issues they talked about 50 years ago, we as leaders failed today.

“This is only one of the many agreements that we sign with the provincial govt and with LNG Canada and with Chevron and everybody else that’s willing to sit down and work out some sort of agreement with us.

“In fifty, a hundred years I am sure our descendants won’t be talking about poverty, they won’t be talking about unemployment, they wont be talking about extra land so we can build more houses. they’ll be talking about issues we can’t even understand yet but they won’t be dealing with the issues we’re trying to deal with today.

“What is the next agreement? The only thing that makes this possible is two parties sitting down and saying ‘let’s get an agreement for the betterment of all.’”

The incremental treaty ceremony begins at the Haisla Recreation Centre (Robin Rowland/Northwest Coast Energy News)
The incremental treaty ceremony begins at the Haisla Recreation Centre (Robin Rowland/Northwest Coast Energy News)


Quick Facts:

    • Haisla Nation has approximately 1,840 members, with 700 people living in Kitamaat Village, at the head of Douglas Channel, about 10 kilometres south of Kitimat.
    • The incremental treaty agreement provides for the early transfer land to Haisla Nation, ahead of a final agreement with the Haisla.
    • The Province and Haisla Nation have collaborated on a number of initiatives, including facilitating negotiations for the Haisla to purchase former District of Kitimat hospital lands; the purchase of MK Bay Marina; and transfer of foreshore lots in the Douglas Channel
    • In 2012, Haisla Nation and the Province signed the Haisla Framework Agreement allowing for the purchase or lease of approximately 800 hectares of land adjacent to Indian Reserve No. 6, intended for LNG development. The framework agreement also commits the parties to land-use planning around the Douglas Channel, helping to create certainty and allowing other projects in the area to proceed.
    • Haisla is a member of the First Nations Limited Partnership, a group 16 First Nations with pipeline benefits agreements with the Province for the Pacific Trail Pipeline. Haisla and the Province also have a forestry revenue sharing agreement and a reconciliation agreement.
    • Haisla Nation is a member of Marine Planning Partnership for the North Pacific Coast, which provides recommendations on stewardship and sustainable economic development of the coastal marine environment.
    • Over the past decade, the Haisla Nation has engaged in 17 joint ventures with industries seeking to support economic activity for the region

(Source Ministry of Aboriginal Relations and Reconciliation)

Text of the incremental treaty agreement (Pdf)

Long term outlook good for North American LNG, consultant predicts


A US-based engineering and consulting firm, Black & Veatch has issued an optimistic outlook for liquified natural gas exports from both Canada and the United States.

Black & VeatchLooking at the the number of LNG export licenses issued to projects “that are likely to proceed,” Black & Veatch  raised its forecast for LNG exports by 2020 from the U.S. and Canada to 10 to 14 billion cubic feet per day (Bcf/d).

The report mainly concerns the United States, where the race for LNG exports is as fierce as it is in Canada.

“Tens of billions of dollars in capital are targeted for the seven LNG export terminals currently granted licenses by the U.S. Department of Energy (DOE),” said Deepa Poduval, Principal Consultant with Black & Veatch’s management consulting business. “Infrastructure construction, real estate transactions and other services associated with these projects are expected to spur significant levels of economic activity throughout the value chain.”

As far as Canada is concerned, Poduval said, “proposed projects continue to suffer from regulatory and environmental delays, high costs and fiscal uncertainty that have hindered development on all but a couple of frontrunners.”

The report was based on experts surveyed by the company. Respondents were asked to select their expectation of the volume of natural gas that will be exported from the United States and Canada as LNG by 2020.

Nearly 37 percent of respondents said they believed exports would total more than 6 Bcf/d by 2020. In 2013, less than 25 percent of respondents expected exports at this level. In 2014, 60 percent of respondents said they expected LNG exports to be less than 10 Bcf/d by 2020. Less than 7 percent of respondents put the figure at more than 10 Bcf/d.

Poduval  said that as less expensive U.S. gas becomes more viable, Asian buyers are increasingly pushing back on higher cost supplies from their suppliers in Asia, Australia and the Middle East, Poduval said.

This pushback is stalling some of the more expensive LNG projects in Canada, Australia and East Africa, with Asian buyers holding back on long-term purchase commitments from these projects in pursuit of more favorable price terms… One of the dangers for U.S. LNG exports continues to be that they could shrink the very price spread that makes them attractive.

Poduval said the first trains at Sabine Pass in Louisiana are expected to go online starting in the fourth quarter of 2015.

Poduval noted the announcement of  the 30-year $400 billion agreement for Russia to supply natural gas to China via a new pipeline was considered by some as the “Holy Grail” of international natural gas agreements following stalemated negotiations for more than 10 years between the two countries.

The deal could provide much-needed market diversity for Russia, which exports 80 percent of its natural gas to an increasingly unfriendly Europe that is pursuing other sources of supply. In addition, Russia would potentially supplant some LNG demand from China by supplying about 3.5 Bcf/d of natural gas under this agreement.

Her report also says that an Alaska LNG pipeline project that has been on and off for the past 30 years is now in a pre-FEED (Front End Engineering and Design) stage.

If it goes ahead, the project, which would be the largest in North America, with a capital cost estimate of $45 billion to $65 billion, will bring gas from the North Slope along an 800-mile pipeline to south-central Alaska, where it will be liquefied for shipping to Asian markets.

“But the marketplace continues to be subject to geopolitical events and regional economics,”  Poduval said.

RELATED REPORTS

The Sydney Morning Herald is reporting Shell shelves Arrow LNG project in Queensland with North American projects “a priority.”

Royal Dutch Shell has finally ditched plans for a new $US20 billion-plus liquefied natural gas project in Queensland,making it the latest casualty of the oil price slump.

Global chief executive Ben van Beurden said the proposed greenfield Arrow LNG project with PetroChina was “off the table”, while other ventures would be slowed as priority was given instead to Shell’s North American LNG projects.

“We are prioiritising North America LNG options in that timeframe, LNG Canada and Elba,” he explained, referring to Shell’s LNG export projects in western Canada and the US state of Georgia.

Shell logoShell is also a partner in  the Woodside Petroleum-led Browse floating LNG project, the Sydney Morning Herald reported.   Woodside recently announced it will buy Apache’s stake in the Chevron-led Kitimat LNG project.  Shell says:

the timing for starting engineering and design had already been deferred by six months to mid-2015. While the Shell chief executive’s words place some uncertainty whether the oil major wants to proceed in that timeframe, the company has still listed Browse among final investment decision “choices” for the 2015-16 period.

There are new owners for the Douglas Channel LNG project, according to this news release.

The Douglas Channel project, which contemplates a floating LNG project at the old log sort half way between Kitimat harbour and the Chevron-led Kitimat LNG project at Bish Cove is a now partnership between EXMAR, “an independent Belgium-based company with 35 years’ experience in LNG shipping,” EDF Trading (“EDFT”) a subsidiary and wholesale market operator of Electricite de France S.A., an international energy company with over 39 million customers and AIJVLP, “a limited partnership between AltaGas Ltd. (“AltaGas”) and Idemitsu Kosan Co.,Ltd. (“Idemitsu”). Idemitsu is a Japan-based global leader in the supply of energy and petroleum. AltaGas is the parent company of Pacific Northern Gas which supplies consumers in Kitimat.

The news release says the  “Consortium has also executed long-term lease agreements with the Haisla Nation regarding land and water tenure, and with Pacific Northern Gas Ltd. (PNG) for long-term pipeline capacity to supply gas.”

 

 

Controlling land and pipelines key to Haisla LNG future NEB filing says

The Haisla Nation’s plan for entering the LNG business is based on the idea that “it is anticipated that the Haisla Projects will be developed using a business model based on controlling two components of the value chain: land and pipeline capacity” according to its application to the National Energy Board for a natural gas export licence.

Cedar LNG Development Ltd., owned by the Haisla Nation, filed three requests for export licences with the NEB on August 28, under the names Cedar 1 LNG, Cedar 2 LNG and Cedar 3 LNG.  Another name used in the application is the “Haisla Projects.”

The 25-year export licence request is standard in the LNG business; it allows export of natural gas in excess of projected North American requirements. Thus like the NEB hearings for the Kitimat LNG and LNG Canada projects it is not what is called a “facility” licence which is what Enbridge Northern Gateway requested.

The project anticipates six “jetties” that would load LNG into either barges or ships at three points along Douglas Channel, one where the present and financially troubled BC LNG/Douglas Channel Partners project would be.

A second would be beside the BC LNG project, which may refer to the Triton project proposed by  Pacific Northern Gas parent company Altagas.

Both are on land now owned by the Haisla Nation in “fee simple” land ownership under Canadian law.

Map of Haisla LNG sites
Map from the Haisla application to the NEB showing that the Haisla Projects Region will allow for a total of six LNG jetty sites. One of these, on DL99, is currently ear-marked to be used for a project involving a consortium (BCLNG) One will be situated on the DL309 Haisla fee simple land and the other four jetties are to be  situated on the Haisla leased lands that surround the Chevron-led LNG development at Bish Cove. The map also shows that the Haisla own land at Minette Bay.

The other four would be on land surrounding the current Chevron-led Kitimat LNG project along Douglas Channel and in the mountains overlooking Bish Cove which the Haisla have leased.

Ellis Ross
Haisla Nation Chief Counsellor Ellis Ross at Bish Cove, June 19, 2013. (Robin Rowland/Northwest Coast Energy News)

The move last week and the revelation of the Haisla’s plans for the land are a cumulation of Haisla Nation Chief Counsellor Ellis Ross’s idea of restoring more of the First Nation’s traditional territory by buying or leasing the land using standard Canadian land law and at the same time getting around some of the more restrictive provisions of the Indian Act that apply to reserve land.

Just how the Haisla will go into the pipeline business is not as clear as the First Nation’s acquisition of the land. The application says:

The pipeline capacity required to transport sourced LNG to the Haisla Projects will include a mix of new and existing pipeline and infrastructure. The Haisla are in the advanced stages of negotiating and drafting definitive agreements with the major gas producers and pipeline transmission companies located in the vicinity with respect to securing pipeline capacity. It is expected that the Haisla Projects will rely on the Haisla’s business partners or customers to source gas from their own reserves and the market.

With the Haisla basing their business strategy on land and pipelines, the First Nation’s strategy is looking for  flexibility in what is a volatile and uncertain market for LNG.

The application says the Haisla “are currently in advanced stage discussions and negotiations with a number of investors, gas producers, LNG purchasers, pipeline transmission companies, technology providers and shippers. As such, the particular business models have yet to be finalized. However, it is anticipated that between the various Haisla Projects, multiple export arrangements may be utilized.”

As part of the idea of flexibility, the actual LNG infrastructure will be constructed and operated with potential partners. That is why there are three separate applications so that each “application will represent a separate project with independent commercial dealings with investors, gas producers, LNG purchasers, pipeline transmission companies, technology providers and shippers.”

The Haisla say that they are “working with a number of entities to develop business structures and partnerships to provide transaction flexibility, adequate financing, modern technology, local knowledge, and marketing expertise specific to Asian targets. The separate projects will accommodate expected production and demand and will also allow for a number of midlevel organizations to be involved with the various projects as well as traditional major gas producers and LNG purchasers.”

The Haisla are working with the Norwegian Golar LNG which had been involved in the stalled BC LNG project, using a Golar LNG’s vessels and technology, using a new design that is now being built in Singapore by Keppel Shipyard.

Golar LNG uses PRICO LNG  process technology developed by Black & Veatch,  (Wikipedia entry) “which is reliable, flexible and offers simplified operation and reduced equipment count.”

The filing says the project will “be developed using either barge-based or converted Moss-style FLNG vessels. The terminals will consist of vessel-based liquefaction and processing facilities, vessel-based storage tanks, and facilities to support ship berthing and cargo loading”

The jetties to be used for the Haisla Projects may be either individual FLNG vessels or “double stacked”, meaning that the FLNG vessels are moored side-by-side at a single jetty. The Haisla have conducted various jetty design work and site /evaluation studies with Moffat and Nichol.

The Haisla Projects anticipate that the construction will be in 2017 to 2020, “subject to receiving all necessary permits and approvals” and is expected to continue for a term of up to twenty five years. There is one warning, “The timelines of the Haisla Projects will also depend on the contracts and relationships between the Applicant and its partners.”

The filing goes on to say:

Haisla Nation Council and its Economic Development Committee are committed to furthering economic development for the Haisla. The Haisla’s business philosophy is to advance commercially successful initiatives and to promote environmentally responsible and sustainable development, while minimizing impacts on land and water resources, partnering with First Nations and non-First Nations persons, working with joint venture business partners, and promoting and facilitating long-term development opportunities.

The Haisla Applications will allow the Haisla to be directly involved as participants in Canada’s LNG industry, rather than having only royalty or indirect interests. The Kitimat LNG and LNG Canada projects, and the associated Pacific Trails Pipeline and Coastal Gas Link Pipeline, have increased economic opportunities in the region and the Haisla are very supportive of these projects locating within the traditional territory of the Haisla. The support of the Haisla for these two projects reflects a critical evolution of the Haisla’s economic and social objectives.

You can see the filing on the NEB projects page at http://www.neb-one.gc.ca/clf-nsi/rthnb/pplctnsbfrthnb/lngxprtlcncpplctns/lngxprtlcncpplctns-eng.html

Map from the Haisla Nation application to the NEB showing the proposed LNG developments in relation  to Douglas Channel.
Map from the Haisla Nation application to the NEB showing the proposed LNG developments in relation to Douglas Channel.
Bitumen map
Map from the Enbridge filing with the Joint Review Panel showing the same area with the proposed Northern Gateway bitumen terminal.

 

 

Haisla Nation starting their own LNG export project: industry reports

The Haisla Nation have filed an application with the National Energy Board for their own liquified natural gas export project, according to industry newsletters.

Haisla NationThere is nothing at this point in the public section of the NEB website, probably due to the holiday weekend. Northwest Coast Energy News is contacting Haisla leaders for confirmation.

According to both the Daily Oil Bulletin  and Natural Gas Intelligence  the Haisla have formed three companies, Cedar 1 LNG Export, Cedar 2 LNG Export and Cedar 3 LNG Export, and have applied to the NEB for three standard 25 year export licences.

According to Natural Gas Intelligence:

The filings with the National Energy Board (NEB) envision construction starting in 2017-2020 of a network of six jetties or docks jutting out from Haisla land on the shore of Douglas Channel for floating LNG vessels. Each requested export license would enable operations by two jetties.

The plan calls for a mini-armada of six mobile processing plants, with each one capable of converting up to 400 MMcf/d of gas into liquid cargo for overseas deliveries.

Work is under way with international tanker firm Golar LNG to commission construction of the vessels in Singapore at the Keppel Shipyard, according to the applications.

With the project still in planning stages, Cedar LNG did not disclose cost estimates. Names of prospective partners in the terminals; Asian customers, BC gas suppliers and pipeline service providers were also undisclosed. Discussions are under way on all fronts with an array of industry participants, Cedar told the NEB.

The Hasila are partners in the stalled BC LNG project that ran into trouble when the original Texas based investors got into financial difficulty. AltaGas, parent company of Pacific Northern Gas, is also involved in Triton, a floating LNG project that would be at an old log sort on Douglas Channel, the same site as the BC LNG project.

 

Map of current LNG and other projects in the Kitimat area from the BC airshed report. (Environment BC)
Map of current LNG and other projects in the Kitimat area from the BC airshed report. (Environment BC)

MORE TO COME

Second floating LNG terminal eyed for Kitimat at Douglas Channel log sort

PNG Pipeline Looping Project map (PNG)
PNG Pipeline Looping Project map (PNG)

A second floating liquified natural gas terminal may be planned for Kitimat, Northwest Coast Energy News has learned.

According to multiple sources in Kitimat, Altagas, the parent company of Pacific Northern Gas plans the terminal at the old log sort site on Douglas Channel, where the barge carrying the liquifaction equipment would likely be moored next door to the already planned BC LNG/Douglas Channel Partners LNG project which would be served by gas delivered by the PNG pipeline system.

Pacific Northern Gas has filed an application with the BC Environmental Assessment Office to construct and operate an approximately 525 kilometre, 610 millimetre (24 inch) diameter natural gas pipeline from the natural gas hub at Summit Lake, near Prince George, to Kitimat that would loop or twin the existing PNG existing natural gas pipeline.

The application to the BCEAO says: “The proposed Project would supply natural gas to proposed liquefied natural gas (LNG) export facilities as well as the Proponent’s existing customers. The proposed Project would include the replacement of four existing compressor stations and would have an initial capacity of 600 million standard cubic feet per day.”

PNG Open House
PNG Pipeline Looping Project Open House at Tamitik. Nov. 26, 2013. (Robin Rowland/Northwest Coast Energy News)

On Tuesday, November 26, Pacific Northern Gas held a sparsely attended open house at Tamitik Arena as part of the BCEAO public comment procedure.

A 38 day public comment period on the application information requirements started on November 25 and will end on January 2, 2014.

At the open house,  PNG officials explained that “looping” means that there would be a second or twin pipeline that would mostly be on a parallel route to the existing pipeline. Since both pipelines would begin at the Summit Lake terminal and end at the Kitimat terminal that is where the term “looping” comes in.

The PNG officials said that the pipeline was initially designed to service the first floating LNG terminal at the old log sort site on Douglas Channel south of Kitimat, but north of the KM LNG site at Bish Cove.

It would be operated by  BC LNG Energy Cooperative, through Douglas Channel Energy Partnership, a partnership with the Haisla Nation and LNG Partners, the energy investors mainly from Texas,

Unlike the bigger project Kitimat LNG or KM LNG, a partnership between Chevron and Apache (and according to reports possibly Sinopec) or the Shell-led partnership LNG Canada, the BC LNG project would allow smaller companies to provide LNG to Asian customers.

At the open house, the PNG officials said the two pipelines could also service “another Kitimat floating LNG project” but declined to give details for confidentiality reasons. The same officials also said the proponent of that project was also looking at Prince Rupert as a possible site for the second floating terminal.

Kitimat sources have confirmed that AltaGas has told them that the company is also considering Prince Rupert as a site for a floating LNG terminal.

However, the current documentation and maps filed with the BCEAO show the PNG looping pipeline terminating at Kitimat, not Prince Rupert.

PNG pipeline map
Detail of the PNG Pipeline Looping proposal. The existing pipeline is shown at the dashed line, the new pipeline is shown in purple. (PNG)

According to the maps filed with the BCEAO and made available at the open house, the new pipeline would not be twinned completely along the existing route across the mountains west of Smithers to Terrace, but would head north at Telkwa parallel to Highway 16 before making its own way through the mountains, crossing the existing pipeline at the Zymoetz River east of Terrace and then taking a westerly route toward Lakelese Lake before joining the existing pipeline corridor along Highway 37.
AltaGas took over Pacific Northern Gas in the fall of 2011.

The Texas-based arm of Douglas Channel Energy partnership, LNG Partners,  is currently in financial difficulty. Reports say that the Texas investors in the company are having difficulty repaying a $22.5 million loan from China’s ENN Group.

The problems currently faced by the Texas group have no affect, at this point, on the Haisla Nation investment in the BC LNG Energy Cooperative. There is already speculation in Kitimat that if the LNG Partners get into further financial difficulty, AltaGas may step in and take over. The would raise the question whether or not there would still be two floating LNG terminals on Douglas Channel, or just the one, as originally planned, but under new ownership.

In it’s project proposal PNG says

The Project will generate approximately 1800-2400 direct person years of employment during construction. Additionally, tax benefits will be generated for Kitimat and the regional districts crossed by the pipeline. PNG anticipates the project will also result in a significant reduction in natural gas transportation rates for its existing customers.

Natural gas transportation costs are a major issue in the northwest, for those costs appear to keep going up while the price of natural gas in North America is generally going down. Natural gas transportation costs in Kitimat spiked after the closure of the Methanex plant and have continued to be quite high, which is just one of the increasing burdens for residents of Kitimat on fixed or low incomes, who are not benefiting as others from the current boom town economy.

Another problem facing PNG is that the new pipeline will cross the traditional territory of the Wet’suwet’en First Nation, where one house, the Unist’ot’en oppose both the Northern Gateway and Pacific Trails Pipeline and have set up a blockade camp on access roads.

The PNG filing with the BCEAO promises consultation with both the Wet’suwet’en Council, and the Office of the Wet’suwet’en, which represents the hereditary chiefs and matriarchs, as well as other First Nations along the proposed route.

 

PNG Open houses for the project are scheduled for:

Vanderhoof
Friendship Centre Hall
Thursday, November 28, 2013

Terrace
Best Western Inn
Monday, December 2, 2013

Smithers
Hudson Bay Lodge
Tuesday, December 3, 2013

Burns Lake
Chamber of Commerce
Wednesday, December 4, 2013

Summit Lake
Community Hall
Thursday, December 5, 2013