Business in Vancouver – Huu-Ay-Aht First Nations signs project agreement with Steelhead LNG

Tue Jul 8, 2014 11:07am PST

Steelhead LNG Corp. and the Huu-ay-aht First Nations (HFN) announced July 8 they have signed an opportunity development agreement that will see them work together to explore developing a liquefied natural gas (LNG) project on HFN-owned land at Sarita Bay, approximately 10 kilometres north of Anacla at the southern end of Alberni Inlet on Vancouver Island.

The project, which would include a land-based liquefaction facility, could ultimately represent an investment of US$30 billion and create hundreds of direct jobs from design through construction, and hundreds of additional full-time operational jobs should the project go ahead. If the project goes ahead, the facility would run for at least 25 years.

On July 8, Steelhead LNG applied to the National Energy Board for a licence to export up to 30 million tonnes of LNG per year for 25 years. The development of the Sarita Bay site would be split into four, six million tonnes per annum (mtpa) LNG production trains, which is reflected in the application.

The company announced earlier this year it planned to soon file for an export licence.

Link to BIV story

Link to Daily Oil Bulletin Story

Vancouver Sun – Port Alberni, B.C., site of proposed First Nations, LNG export plant

By Dirk Meissner, The Canadian Press
July 8, 2014

VICTORIA – A Vancouver-based company and a Vancouver Island First Nation announced plans Tuesday to work together to build a liquefied natural gas plant on aboriginal-owned land on the west coast of Vancouver Island.

Steelhead LNG Corp., and the Huu-ay-aht First Nations signed a development agreement to build the LNG plant on treaty land located near Bamfield at the southern end of Alberni Inlet about 90 kilometres west of Port Alberni.

Steelhead LNG said the project could represent an investment of about $30 billion, with the plant operating for 25 years. The company said it applied to the National Energy Board for an export permit of up to 30 million tonnes of LNG a year.

Steelhead LNG chief executive officer Nigel Kuzemko said in a telephone interview that the project is in its early days and a final investment decision on whether to proceed with the plant is at least four years away.

Link to story

Global BC – BC First Nations partner with Steelhead LNG

Tue, Jul 8: The Huu-ay-aht First Nation has signed an agreement with Vancouver’s Steelhead LNG to develop an LNG plant on their land near Bamfield. Brian Coxford reports.

Steelhead LNG and Huu-ay-aht First Nations sign Opportunity Development Agreement for LNG project on Huu-ay-aht First Nations Land at Sarita Bay

VANCOUVER, BC – Steelhead LNG Corp. and the Huu-ay-aht First Nations (HFN) today announced they have signed an Opportunity Development Agreement that will see them work together to explore developing a liquefied natural gas (LNG) project on HFN-owned land at Sarita Bay, approximately 10 kms north of Anacla at the southern end of Alberni Inlet on Vancouver Island.

The project, which would include a land-based liquefaction facility, could ultimately represent an investment of US$30 billion and create hundreds of direct jobs from design through construction, and hundreds of additional full-time operational jobs should the project go ahead.  If the project goes ahead, the facility would run for at least 25 years. Continue reading

Timing critical for LNG development

Arthur WILLIAMS / Prince George Citizen / June 27, 2014 08:19 PM

Canada has massive natural gas reserves -much of it concentrated in B.C.’s Horn River and Montney basins – but the province and the country could lose out on the growing Asian market if liquified natural gas (LNG) pipelines and export terminals aren’t built quickly, according to one energy industry analyst.

Peter Howard, president of the independent, Calgary-based Canadian Energy Research Institute, says Canada is currently the fifth-largest natural gas producer in the world and has “a thousand trillion cubic feet of natural gas reserves,” Howard said. Of the 3,300 natural gas wells approved to drill in Western Canada in 2013, 44 per cent were in B.C.

“We are currently producing 14 billion cubic feet per day of natural gas, [and] 8.8 billion feet per day goes to the U.S.,” Howard said. “But that could change.”

Shale gas development in the U.S., including the massive untapped reserves in the Marcellus Formation in the eastern states, is expected to displace Canadian exports in the U.S. market -and compete with Canadian exports overseas.

“We were sending half our gas to the U.S. in 2006, that number will be 15 per cent in a couple years… and could go down to zero,” he said.

The growing Chinese market is expected to consume 17 billion cubic feet of natural gas per day by 2030, Howard said. There are currently proposals for 13 LNG marine terminals and five natural gas pipelines in B.C., all aimed at getting into that lucrative market.

But B.C. isn’t the only gas producer looking to sell gas to China.

“Qatar and Australia already have have [LNG tankers] going into that market. Australia is signing long-term contracts right now. It was recently announced that Russia and China have signed… a pipeline deal,” Howard said. “Russia’s ultimate game plan is to… build one or two large pipelines into China. [And] the U.S. has 30 billion cubic feet per day of projects coming online.”

Companies are proposing LNG export terminals in the Gulf of Mexico, the U.S. west coast and possibly even Alaska, he said.

“We think as long as two of the B.C. projects move to the final investment decision by the end of the year, they can get into the [Chinese] market. After that there might be room for a third, or the expansion of a second,” Howard said. “In all likelihood the next B.C. project won’t get into that market, six U.S. projects will have taken its place. Post-2023, the [Chinese] market will be in an oversupply situation.”

The provincial government’s job creation and revenue predictions are based on five LNG projects going ahead. But even if only two or three projects proceed, the economic benefits will be large, Howard said.

The proposed Pacific NorthWest LNG terminal on Lelu Island and 900 kilometre Prince Rupert Gas Transmission pipeline from Hudson’s Hope to Port Edward entered the environmental assessment process in May.

If it proceeds, it will create significant demand for natural gas from B.C.’s northeast, he said.

“Before they turn on the valve, they have to drill 880 wells. Each one of those wells takes 12-15 [workers]. Every one of these wells uses services,” he said. “Over the next 20 years, this one project would invest $40 billion in B.C. Canada needs these LNG pipelines. [But] if they do not proceed in a timely fashion, they won’t enter that [Chinese] market.”

Link to full story

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