OTTAWA: Steelhead LNG Corp. has inked a Mutual Benefits Agreement (MBA) and Long-Term Lease with the Malahat First Nation supporting the proposed development of Malahat LNG, a liquefied natural gas (LNG) facility to be situated on the shoreline of Malahat Nation-owned land, 8 kilometres south of Mill Bay on Vancouver Island.
The proposed facility, expected to have a capacity of up to 6 million tonnes per annum (mtpa), would include floating liquefaction facilities moored to the shoreline and minor supporting land-based infrastructure.
“As a BC-based LNG development company, we are committed to early engagement with First Nations and getting things right. That is why our first step over the past 13 months was to develop a close working relationship with the Malahat Nation based on trust and respect. Our MBA with the Malahat at this early stage of the project is a reflection of our commitment to working with each other and of the relationship we have developed,“said Nigel Kuzemko, CEO, Steelhead LNG.
The industrial-zoned land allocated for the proposed project has hosted a cement manufacturing facility for more than 100 years and is currently being used as a rock quarry, for off-loading industrial equipment and materials and other industrial activities. It is part of a 525-hectare parcel of land that the Malahat recently acquired, tripling the size of their Nation.
As part of the arrangement, Steelhead LNG will provide Malahat Nation with capacity funding to assist the Nation in securing the expertise it needs to ensure the protection of its land and interests. The Nation will also receive direct financial benefits from the project that the Nation intends to use to provide benefits and programs that align with the objectives set out in its Comprehensive Community Plan.
The proposed project will now undergo rigorous regulatory, environmental and technical assessments. Steelhead LNG will also undertake an extensive consultation and engagement process with members of the Malahat Nation, other potentially affected First Nations, local stakeholders and residents.
Steelhead LNG is currently assessing pipeline route options to deliver natural gas to Vancouver Island for both Malahat LNG and the proposed LNG project Steelhead LNG and the Huu-ay-aht First Nations are exploring at Sarita Bay in the Alberni Inlet. The sharing of pipeline infrastructure is a significant enabler for both projects.
On July 8, 2014, Steelhead LNG applied to the National Energy Board for five licenses to export in the aggregate of up to 30 million tonnes of liquefied natural gas (LNG) per year for 25 years. Steelhead has since confirmed to the National Energy Board that one 6 mtpa license will be allocated to Malahat LNG, while the other four 6 mtpa licenses will be allocated to the project at Sarita Bay.
