The B.C. government has concluded another major benefits and reconciliation agreement with a First Nation linked to the Petronas Pacific NorthWest LNG project in Prince Rupert and associated Prince Rupert Gas Transmission line.
At a March 30 press conference attended by Wan Badrul Hisham, Petronas’ chief project officer for the PNW LNG project, and Kitselas First Nation Chief Joe Bevan, the government announced the Kitselas have signed an agreement that will give them $13 million in cash, 1,227 hectares of land and $500,000 annually for the life of the project.
The benefits will form part of a reconciliation agreement that will eventually be included in a treaty agreement. It includes revenue sharing provisions for not only the PNW LNG and associated pipeline project, but the Shell LNG Canada project as well.
The agreement announced Thursday represents only the government’s contribution. Petronas also signed a benefits agreement with the Kitselas, who live in the Terrace area, nearly two years ago that provides for skills and capacity training, job and business opportunities and annual payments for the life of the project.
The Kitselas agreement is the third major benefits agreement to be signed recently aimed at moving forward LNG projects in the Prince Rupert area.
In February, the government announced that the Lax Kw’alaams and Metlakatla First Nations had signed agreements that include $200 million in cash, Crown land and annual revenue sharing.
Bevan said the Kitselas’ acceptance of the benefits agreement demonstrates his people’s “continued commitment to sustainable development in our territory.
“We are pleased today to sign these agreements with B.C. that reflect a sharing of benefits – creation of employment and the development of business opportunities that will come with these projects.
“The projects which are represented by these agreements have been thoroughly reviewed by Kitselas, and each of our agreements with the project proponents contain mitigation measures to ensure that potential impacts to the environment, our culture and our rights have been addressed.”
Minister of Aboriginal Relations and Reconciliation Minister John Rustad confirmed there are benefits agreements still being negotiated with three other First Nations in the area: Gitga’at, Kitsumkalum and Gitxaala.
“These are the major ones and the major interests within that area,” he said.
The Petronas project has been plagued by delays that forced the company to postpone a final investment decision, originally expected in 2015. Petronas recently confirmed it would not make a final investment decision on the project in 2017.
The company is currently reviewing the project, including the possibility of relocating a planned export terminal away from the ecologically sensitive Flora Bank to an industrial site on Ridley Island that recently became available.
Asked for a status update, Hisham said all aspects of the project – including a possible alternative site – were still being reviewed.
“I think we are still in the process of evaluating on how to optimize our economics and our project, and it will take a little bit of time,” Hisham said. “You must understand that this is a very big investment and involves several parties. We are currently under full review of the project.”
The agreement signed Thursday includes the following benefits:
• $13 million in cash payments;
• 1,227 hectares of land;
• $500,000 annually once LNG plants are producing;
• $0.02 per tonne in revenue sharing on LNG sales; and
• $500,000 annually for three years under a Coastal Fund Agreement.
