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Province congratulates PNW LNG and Port Edward on Agreement-in-Principle

Press Release

VICTORIA – On behalf of the Government of British Columbia, Community, Sport and Cultural Development Minister Coralee Oakes today offered warm congratulations to the District of Port Edward and Pacific NorthWest LNG (PNW LNG) for signing an agreement-in-principle that would define municipal property taxation benefits for the municipality over the next 25 years.

Port Edward is the first B.C. community to sign such an agreement with a liquefied natural gas (LNG) proponent, marking another step forward in plans for PNW LNG to build an LNG facility on Lelu Island, located in the District of Port Edward on land administered by the Prince Rupert Port Authority. The first phase of the project would consist of two liquefaction trains, two LNG storage tanks, marine infrastructure with two berths for LNG carriers, a material offloading facility, as well as administration and auxiliary buildings.

The facility would liquefy and export natural gas produced by Progress Energy Canada Ltd. in northeast B.C. for transport to Lelu Island by the Prince Rupert Gas Transmission project. PETRONAS is the majority owner of Pacific NorthWest LNG; other shareholders include Sinopec, JAPEX, Indian Oil Corporation and PetroleumBRUNEI.

As a result of this agreement-in-principle, the District of Port Edward has requested that the Province introduce legislation to enable this agreement under the Community Charter. The Government of British Columbia will seek to introduce this legislation in the legislative assembly as soon as reasonably practicable in the spring 2015 legislative session.

In addition to annual municipal property taxation, this agreement-in-principle also proposes significant infrastructure benefits for the District of Port Edward, including support for water and sewer system upgrades and future construction of the Wampler Way bypass.

Quotes:

Minister of Community, Sport and Cultural Development Coralee Oakes –

“Today’s announcement is an important step in preparing for the unprecedented opportunities ahead for northern communities through natural gas development. As a supporting partner, our ministry has been working with local communities and proponents to facilitate discussions to help ensure they are able to harness the full potential of new jobs and development. I would like to congratulate the District of Port Edward and Pacific NorthWest LNG on being the first to sign such an agreement in British Columbia.”

Deputy Premier, Minister of Natural Gas Development and Minister Responsible for Housing Rich Coleman –

“This agreement provides clarity and certainty for the District of Port Edward and Pacific NorthWest LNG. The Province is committed to making sure B.C. is competitive and the foundations are in place to support the LNG opportunity. We will continue to work with industry and communities to ensure lasting benefits are achieved as the industry develops.”

Quick Facts:

  • B.C.’s Northwest region is expected to be at the centre of liquefied natural gas opportunities – specifically Kitimat, Prince Rupert, Port Edward, Terrace and the regional districts of Skeena-Queen Charlotte and Kitimat-Stikine.
  • The Ministry of Community, Sport and Cultural Development is working closely with local communities to ensure they have the resources needed to prepare for rapid growth.
  • In May 2014, the Province announced grants of up to $1 million to help local governments impacted by significant industrial growth in the Northwest.

Learn More:

To learn more about the Province’s Liquefied Natural Gas strategy, visit:
http://www.gov.bc.ca/ener/popt/down/liquefied_natural_gas_strategy.pdf
and http://engage.gov.bc.ca/lnginbc/

Media Contacts:Ministry of Community, Sport
and Cultural Development
250 888-1462

Spencer Sproule
Senior Advisor, Corporate Affairs
Pacific NorthWest LNG
604 828-7680

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