Terasen Gas (Vancouver Island) Inc., a subsidiary of Terasen Inc., has signed landmark agreements that will give two B.C. native bands an equity stake in Vancouver Island's Mount Hayes natural gas storage facility.
The agreements with the Chemainus First Nation and the Cowichan Tribes give them the option to own a 15% equity interest in the storage facility and a share of revenue generated from the project through a limited partnership agreement.
Both First Nations groups will initially invest $6 million into the partnership and potentially make another investment in 2011 if they can secure the financing.
Each First Nations community will have representation on the partnership's board, which will guide the operation of the Mount Hayes facility.
The Mount Hayes natural gas storage facility, which is located within the traditional territory of the Chemainus First Nation six kilometres northwest of Ladysmith, will become fully operational in 2011. It will service natural gas customers on Vancouver Island and the mainland. The project is expected to add $50 million to the local economy and create 40 jobs during construction and nine full-time positions once the facility is complete.