THE OPPORTUNITY

  • The proposed location for Malahat LNG is a brownfield site with deep water access that has been used for industrial activity for more than 100 years.
  • The proposed location is home to the Malahat Nation, who are exploring LNG as a way to realize their nation-building goals, create important economic, employment and training opportunities for its members, and generate revenue to support community programs.
  • Malahat LNG’s proximity to Steelhead LNG’s proposed LNG Project with Huu-ay-aht First Nations at Sarita Bay provides potential pipeline and other infrastructure cost sharing opportunities that could significantly benefit each project.
  • The proposed project will provide economic and employment opportunities for neighbouring First Nations and residents of Southern Vancouver Island.
  • The proposed location provides excellent access to the Pacific Ocean and customers in Asia along shipping routes that are routinely used for the safe transportation of commercial and industrial goods.
  • Liquefied Natural Gas represents a unique and timely opportunity to generate significant environmental, health and economic benefits for British Columbia, Canada and countries around the world.
  • Around the world, and especially in Asia and the developing world, countries rely heavily on coal, oil and other fossil fuels to provide power for their growing economies and populations. As a result:
    • Each year, air pollution from harmful fossil fuels contributes significantly to the death of more than 3.5 million people around the world, including 1.2 million people in China.
    • Pollution from Asia travels across the Pacific and affects our environment in North America.
  • By using cleaner burning natural gas from BC, countries in Asia can significantly reduce their use of coal and oil in their homes, vehicles and factories. That will improve the health of people and the environment in Asia, as well as the health of people and the environment here in British Columbia.
  • Ongoing improvements in the efficiency and safety of drilling technology is providing Canada with immediate access to abundant natural gas reserves, revenue generation opportunities and skills and employment opportunities.

ABOUT THE PROJECT

On August 20, 2015, Steelhead LNG Corp. and the Malahat Nation announced the successful completion of a Mutual Benefits Agreement (MBA) and Long-Term Lease supporting the development of Malahat LNG, a liquefied natural gas project that would include floating liquefaction facilities (with up to 6 mtpa capacity) moored to the shoreline and supporting land-based facilities.

The proposed project’s significant economic impact would include 20-30 years of revenue generation for local, provincial and federal governments along with the creation of 100-150 high-paying long-term positions once the facility is operational. The project would also create hundreds of additional indirect jobs on Vancouver Island in a wide variety of sectors from design, through construction and operation, as well as training and employment opportunities for Malahat Nation members.

LOCATION

Malahat LNG will be situated on the shoreline of Malahat Nation-owned land, formerly known as Bamberton, approximately 25 kilometers south of Duncan on Vancouver Island. The proposed facility, would include floating liquefaction facilities moored to the shoreline and supporting land-based facilities.

GAS SUPPLY

Natural gas for Malahat LNG would come from northeastern BC and/or Alberta. Canada’s natural gas reserves are expected to meet the country’s projected domestic and export needs for at least the next 100 years. (Natural Resources Canada)

LNG FACILITY

The proposed facility would include floating liquefaction facilities moored to the shoreline and supported by minor land-based facilities. The use of floating liquefaction technology will provide Steelhead LNG with a lower impact facility, lower facility construction costs, quicker access to market and greater operational flexibility. The selection of smaller scale floating technology combines the latest liquefaction and storage technology with the exemplary 50-year safety record of LNG carriers and floating regasification and storage units.

PIPELINE

Malahat LNG could use a combination of existing and new pipelines and right-of-ways to transport the gas from northeastern BC and/or Alberta to Vancouver Island. Steelhead LNG is currently assessing pipeline route options to deliver the required natural gas to Vancouver Island in a way that benefits and significantly advances both Malahat LNG and the proposed LNG project being developed by Steelhead LNG and the Huu-ay-aht First Nations at Sarita Bay in the Alberni Inlet.

EXPORT LICENSE

On July 8, 2014, Steelhead LNG applied to the National Energy Board for five licenses to export in the aggregate up to 30 million tonnes of liquefied natural gas (LNG) per year for 25 years.  Steelhead has since confirmed to the National Energy Board that one 6 mtpa license will be allocated to Malahat LNG, while the other four 6 mtpa licenses will be allocated to Sarita LNG.

FIRST NATIONS

At Steelhead LNG, we recognize that all natural resource projects have the potential to affect the traditional territory of First Nations across the province. Steelhead LNG works together with our host First Nations to ensure that we get it right. We are committed to early engagement in order to develop projects that minimize potential environmental, cultural and socio-economic effects and provide long-term benefits for current and future generations.

Malahat Nation

Our first step in exploring the Malahat LNG project was to spend 12 months exploring the project concept with the Malahat Nation and developing a close working relationship based on trust and respect.

The resulting Mutual Benefits Agreement and Long-Term Lease we announced together in August 2015 is a reflection of our commitment to early engagement with First Nations and getting things right.

PROJECT BENEFITS

The project’s significant economic impact would include up to 30 years of revenue generation, from construction, operation and decommissioning, for local, provincial and federal governments along with the creation of up to 200 high-paying long-term positions once the facility is operational. The project would also create hundreds of additional indirect jobs on Vancouver Island in a wide variety of sectors from design, through construction and operation, as well as training and employment opportunities for Malahat Nation members.

Additional expected economic benefits of the proposed LNG Project include:

There are a wide variety of construction and operations jobs that the proposed project would require including:
• trades positions (gasfitters, electricians, welders)
• engineers
• equipment operators
• technicians
• security
• administrative positions

Additionally, the project would generate hundreds of spin-off jobs and business opportunities in many sectors, including:
• hospitality
• recreation
• tourism
• transportation
• catering
• other service sectors

This includes local spin-off jobs with restaurants, schools, medical providers, grocery stores, hotels and other service providers, for example, which would provide sustained investment in the Vancouver Island and BC economies for 25 years or more.

Throughout the development of the project, Steelhead LNG and Malahat Nation will share information with First Nations and community members about the types of training that would be required for positions in the LNG industry.

KEY DATES

August 20, 2015

Steelhead LNG Corp. and the Malahat Nation announce the successful completion of a Mutual Benefits Agreement (MBA) and Long-Term Lease supporting the development of Malahat LNG.

September 1, 2015

Steelhead announces a Pre-Construction Agreement with Williams subsidiary Northwest Pipeline LLC. to commence with the design and regulatory approvals for a proposed natural gas pipeline (the Island Gas Connector Project) that would deliver Canadian natural gas to Vancouver Island.

September 23, 2015

Steelhead announces an agreement with Höegh LNG, for Höegh LNG and Bechtel to perform the pre-front end engineering and design work for Malahat LNG.

October 2, 2015

The National Energy Board (NEB) approves Steelhead LNG’s application for a licence for Malahat LNG to export in the aggregate up to 6 million tonnes of LNG per year for 25 years.

2015-2017

Extensive community engagement and consultation, complete technical, environmental and engineering studies and design, Provincial and Federal Environmental Assessment process and permitting.

2017-2018

Estimated Final Investment Decision. At this point, after community consultation, rigorous environmental studies, regulatory reviews and detailed engineering designs are complete, a decision will be made on whether or not to build the LNG project.

Project Life

The LNG facility could operate for 25-30 years or longer. For example, a facility operating in Alaska has been operating for 42 years. When the proposed project is over, the Malahat LNG facilities would be decommissioned and removed.

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Contact Us

Address 2200 – 1075 West Georgia Street
Vancouver, BC V6E 3C9
Phone Office: 604-235-3800

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