Canadian companies will explore new midstream supply chain infrastructure that would link natural gas resources to Steelhead LNG’s proposed LNG export projects
Vancouver, BC (September 19, 2016) – A new development agreement announced today between Steelhead LNG and Seven Generations Energy Ltd. sets the stage for engaging Aboriginal groups and communities as the two companies explore the development of new midstream infrastructure to support Steelhead LNG’s proposed natural gas liquefaction and export projects on Vancouver Island.
The arrangement, through which Seven Generations has also acquired a minority interest in Steelhead LNG, is expected to provide potential new markets for Seven Generations’ production as well as increased certainty of natural gas supply for Steelhead LNG.
“This arrangement with Seven Generations creates an opportunity, in the current price environment, for a liquefied natural gas solution from well-head to customer that’s uniquely led by Canadian companies,” said Steelhead LNG Chief Executive Officer Nigel Kuzemko. “Our shared focus on engaging early and often with Aboriginal groups and communities, combined with our collective commitment to produce and deliver low cost, low emissions Canadian natural gas, positions each company to succeed in expanding Canada’s exports of clean-burning natural gas to Asian markets.”
“This partnership formed by Steelhead LNG and Seven Generations Energy is an example of Canadian companies working together in innovative ways to deliver Western Canadian natural gas to market, which benefits not only British Columbians and Albertans, but all Canadians,” said Rich Coleman, BC Minister of Natural Gas Development. “Their commitment to work with First Nations and communities in a collaborative manner, while at the same time support British Columbia’s role as a leader in progressing global climate change objectives, will contribute to the success of these projects. While LNG markets are challenging at the moment, with projects like these and others under development, British Columbia will be exceptionally well-positioned to become a leading supplier of LNG to Asian markets in the coming years.”
“This export market development initiative aims to achieve long-term and sustainable success through the meaningful engagement of those who care about the environment, governments and regulators, communities, business partners and infrastructure customers, suppliers and service providers, employees and shareholders and capital providers,” said Pat Carlson, Seven Generations’ Chief Executive Officer.
“We believe scalable projects like those being proposed by Steelhead LNG, that engage First Nations and communities from the beginning and place a high priority on our environment and safety, will deliver strong benefits to local communities, British Columbians, Albertans and Canadians. Steelhead LNG’s approach aligns with our Code of Conduct, which puts a fundamental emphasis on working collaboratively with communities by incorporating local insight, wisdom and advice during project planning,” said Carlson, who has joined the board of directors of Steelhead LNG.
Steelhead and 7G believe that helping countries to shift away from GHG-intensive energy sources such as low-quality coal to reduce global greenhouse gas and particulate emissions, which impact Canada and other parts of the world, is a global priority. Canada has the means to meaningfully contribute to this objective, affirming its role as a leading global citizen. Steelhead LNG and 7G are uniquely poised to support this effort by providing low-cost delivery of cleaner-burning natural gas produced in a responsible manner through sustainable practices focused on reducing GHG emissions throughout the Canadian supply chain. The proximity of Steelhead LNG’s projects to market also reduces GHG emissions during shipping.
“Our proposed projects remain very promising opportunities. This agreement with Seven Generations is a positive step toward realizing our sustainable and economic delivery model for LNG. At the same time the economic circumstances are challenging and there is more work to do and milestones to achieve for our projects to succeed,” said Kuzemko.
Steelhead LNG is also exploring ways of accessing newly emerging LNG markets such as the conversion of international shipping vessels to LNG from bunker fuel and diesel. With the transportation industry responsible for one of the largest shares of global GHG emissions, converting to natural gas will help industry support emissions reduction targets. This is due to LNG putting about 25 per cent fewer GHG emissions into the atmosphere compared to diesel and oil.
At-Shore LNG Concept
Steelhead LNG is continuing to refine its At-Shore LNG (ASLNG) concept design, which makes use of floating LNG production and storage units moored to marine jetties. The concept will contribute to the low-impact, low-cost development of Steelhead LNG’s proposed Malahat LNG and Sarita LNG projects.
The ASLNG concept requires a limited land-based footprint at each site, significantly reducing potential local impacts and potentially allowing for remediation of existing brownfield land. A single ASLNG production and storage unit can be designed and replicated – providing scalable production capacity at Steelhead LNG’s proposed facilities and an efficient decommissioning process at the end of the facility lifespan.
The National Energy Board has granted Steelhead LNG five licenses to export in the aggregate of up to 30 million tonnes of liquefied natural gas per year for 25 years.
Malahat LNG Project
In August 2015, Steelhead LNG and the Malahat Nation announced that they had agreed to explore the proposed Malahat LNG Project located on the Bamberton Industrial Lands just south of Mill Bay. The Bamberton site is a natural deep-water port with a very steep foreshore gradient, located close to international shipping lanes. The land has been used by local industry for more than 100 years, which minimizes environmental impacts.
Steelhead LNG’s engineering team and consultants are continuing to refine how the ASLNG and Malahat LNG concept design tie together, and continue to conduct robust environmental studies.
“Once we have furthered our concept design, incorporating feedback that we have received from Aboriginal groups and the community, we’ll be in a position to progress in the regulatory processes. In the meantime, we will continue consulting with potentially affected Aboriginal groups, local communities and the public,” said Kuzemko.
Sarita LNG Project
Steelhead LNG is continuing discussions with the Huu-ay-aht First Nations to develop another At-Shore LNG export facility at Sarita Bay at the southern end of the Alberni Inlet.
The project would be located on Huu-ay-aht First Nations owned land at Sarita Bay, about 10 kilometres north of Bamfield, and about 70 kilometres southwest of Port Alberni. The proposed Sarita LNG Project is in the preliminary engineering and conceptual design stage.
In November 2014, Huu-ay-aht Aboriginal groups’ citizens voted in favour of continuing to explore the proposed project with Steelhead LNG.
Steelhead LNG is a Vancouver-based energy company focused on LNG project development in British Columbia. Steelhead’s management team’s experience includes guiding some of the world’s leading energy companies and projects, with commercial and technical expertise that spans the entire LNG value chain. From project concept to product delivery, Steelhead is committed to responsibly creating and delivering value for the communities, suppliers and customers that it serves. For more information about Steelhead LNG, visit www.steelheadlng.com.
Seven Generations Energy Ltd.
Seven Generations is a low-supply-cost, high-growth Canadian natural gas developer generating long-life value from its liquids-rich Kakwa River Project, located about 100 kilometres south of its operations headquarters in Grande Prairie, Alberta. 7G’s corporate headquarters are in Calgary and its shares trade on the TSX under the symbol VII. Further information about Seven Generations is available on the company’s website: www.7genergy.com.
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