Steelhead LNG has ambitious proposals to build two LNG plants on Vancouver Island: a large 24-million tonne LNG plant in Mill Bay and a smaller six million tonne plant – Malahat LNG – in Sarita Bay near Bamberton.
Although there is a natural gas pipeline to Vancouver Island, Steelhead said it would likely need an additional pipeline, with the preferred route being a marine pipeline from Washington state to Vancouver Island along the same route proposed for the Georgia Strait Crossing, which had been proposed to supply the failed Duke Point power plant in Nanaimo more than a decade ago.
On Saturday, the Huu-ay-aht First Nation approved the co-management agreement with Steelhead in a community referendum vote.
“Our goal is to work with Steelhead to make this project real for the benefit of all Canadians and particular for the benefit and the betterment of Huu-ay-aht First Ntion people,” said Huu-ay-aht Chief Councillor Robert J. Dennis
Steelhead LNG has an export licence from the National Energy Board. A pre-FEED (front end engineering and design) study that is underway has not yet fully costed out the two projects.
Steelhead LNG CEO Nigel Kuzemko said the company would hope to make a final investment decision in 2019 or 2020, and production in 2024.
“The LNG market at that time is forecast by every single forecast that we see to be in significant demand for natural gas, LNG, particularly in Asia in 2024,” Kuzemko said.
