With news of federal approval for the Pacific NorthWest LNG facility in northwestern British Columbia leaking hours before the three panelists were scheduled to speak, there was a very welcome elephant in the room at Business in Vancouver’s last Business Excellence Series event.
Held at the Terminal City Club on September 27, the event focused on a range of business investment opportunities in northern British Columbia – a fitting subject given the government’s official announcement about the proposed liquefied natural gas (LNG) terminal, issued minutes after the panel wrapped.
While gas prices have dropped since late 2014, the event’s panellists said they remain optimistic and that the Pacific NorthWest announcement is a sign of things to come.
Dave Steele, CEO of Western Canadian Properties Group and a 25-year veteran of the real estate industry, conceded that LNG in B.C. has been “a bit of a rocky ride, and nothing goes straight up,” when asked by moderator Kirk LaPointe about northern B.C.’s outlook, but he added, “I think long-term it’s literally going to be one of the best regions to invest in Canada for the next couple decades.”
An estimated $70 billion worth of industrial projects are planned for central and northern B.C. in the coming years. With the federal government’s LNG announcement coming as a much-needed win for the sector, it appears the last few years may prove to be a speed bump on a much bigger road.
Stewart Muir, executive director of Resource Works, praised the region’s diversity.
“I’ve had good conversations with four mayors up there,” Muir said. “The power of northern B.C., the GDP created per person, is about six times the rest of the province.”
Muir added that each person living in the region adds approximately $200,000 to the country’s GDP, compared with about $30,000 for the average British Columbian. “It’s a staggering number, and that’s a great way to look at it.”
Michael Johnson, a partner and business adviser for MNP’s Terrace office, said many communities such as Terrace and Kitimat have distinct advantages given how close they are to the Pacific Ocean.
“We’re at the edge of the transportation corridor and we have an advantage geographically,” Johnson said. “We’re the closest route to Asia, China, Japan, to Prince Rupert and the deep-sea port there. Kitimat has a deep-sea port as well.”
Johnson added the area is also undergoing an economic metamorphosis.
“We’re transitioning from a logging sector over the last 20 years to more of a service sector. There’s land available, so the area is really open for everything, not just energy.”
One of the subjects touched on frequently throughout the panellists’ discussion was the future role of First Nations in the region. Geoff Sherrott, a partner in business law with EKB, said it’s time to rethink the business relationship entirely.
“I know there is this perception that transactions involving First Nations are forced upon proponents of projects,” he said. “And, in fact, my experience is this is something proponents can welcome because it gives you the opportunity to work with people who are familiar with the country – people who have a real vested interest in the development of the land, and have had for many years.”
Sherrott added there’s a new style of thinking that many First Nations are adopting as well toward investment opportunities in the region.
“The young leadership of these aboriginal groups are very pragmatic,” he said. “They understand that the survival of their nations is going to be dependent on them getting involved with business activities, getting the training they need and getting back to the communities.”
One of the centres of northern B.C.’s economic resurgence will be Fort St. John, the closest major community to the Pacific NorthWest LNG facility. Steele said the community will increasingly be able to offer a prosperous alternative for people squeezed out of the housing market in the Lower Mainland.
