Government of British Columbia

Government of British Columbia

April 08, 2009 13:15 ET

Government of British Columbia: First Nations to Join KSL Pipeline Project

VICTORIA, BRITISH COLUMBIA--(Marketwire - April 8, 2009) -

NEWS RELEASE

For Immediate Release

2009EMPR0024-000788

April 8, 2009

Ministry of Energy, Mines and Petroleum Resources

FIRST NATIONS TO JOIN KSL PIPELINE PROJECT

VICTORIA, B.C. - The Province, First Nations and the natural gas industry are in the process of developing an innovative partnership that could bring millions in economic development benefits and significant job opportunities to northern British Columbia, announced Energy, Mines and Petroleum Resources Minister Blair Lekstrom today.

"This project is an excellent example of how government, communities and industry can work together to help create economic development activities," said Lekstrom. "This agreement provides the means for First Nations to develop a long-term, mutually beneficial partnership with industry."

The agreement assists First Nations in securing a direct interest in Pacific Trail Pipelines Limited Partnership (PTP) which is developing a proposed 463 km natural gas pipeline from Summit Lake to Kitimat (KSL Project) costing an estimated $1.2 billion (2006 estimate). The KSL Project will enable PTP to transport natural gas from Summit Lake to Kitimat LNG Inc.'s proposed natural gas liquifaction export terminal (Terminal) to be located near Kitimat, British Columbia, and will be the first major pipeline constructed in that part of the province in over 40 years.

"In view of a rapidly changing global economy and First Nations desires to advance their social and economic position, First Nations leadership have structured a landmark agreement with B.C. and PTP," said David Luggi, Carrier Sekani Tribal Chief. "First Nations have channeled their right to use and occupation of land into nation-building investments in the mainstream economy. Investment in the Pacific Trail Pipelines' Project is testimony that industry, First Nations and government can work together on projects that will result in financial returns, gainful employment and associated opportunities that will benefit First Nations communities for generations to come."

"The agreements reached between the First Nations Trade and Commerce Group and the Province of B.C. is a great example of collaboration on interests. The result is a testament to what can be achieved through leadership and the willingness to find solutions to difficult issues," said Steve Wilson, chief councillor, Haisla First Nation. "Two and a half years in the making, the agreements define the relationship between First Nations, British Columbia, and the companies through a legal instrument that binds our collective interests together for the benefit of our shareholders. The agreements are the start of a new beginning that is based on time tested values expressed in a modern context."

"Our future is bound together through the mutual respect, trust, and diligence defined in our partnership. We have returned to our rightful place as full participants in the greatest place on earth through this First Nation building exercise. As we celebrate this new beginning we invite the Government of Canada to engage and participate at our table," continued Wilson.

First Nations along the pipeline corridor are in a position to receive long-term benefits from the agreements between First Nations, the provincial government and PTP. The KSL Project has excellent economic and relationship-building potential which will bring a new beginning for economic prosperity in northern British Columbia.

PTP, currently a 50/50 partnership between Pacific Northern Gas Ltd. and Galveston LNG Inc., the parent company of Kitimat LNG Inc. welcomes the opportunity to have the First Nations as partners in the project. Roy Dyce, president and chief executive officer of Pacific Northern Gas said "We are very pleased to have participated in creating such an innovative and important arrangement among the Province of B.C., the First Nations and industry and look forward to realizing the many benefits this project will bring to our existing customers, to First Nations located in the Summit Lake to Kitimat area and to our shareholders." Both the Terminal and the KSL Project have received the required provincial and federal environmental assessment approvals and are now working to finalize commercial arrangements.

First Nations along the pipeline will receive $3 million as an incentive for the ratification process and a further $32 million that ensures First Nations have an equity position in the Pacific Trail Pipelines' Project.

For more information on government services or to subscribe to the
Province's news feeds using RSS, visit the Province's website at
www.gov.bc.ca.

Contact Information

  • Ministry of Energy, Mines and Petroleum Resources
    Jake Jacobs, Public Affairs Officer
    Media Contact
    (250) 952-0628 or Cell: (250) 213-6934
    Website: www.gov.bc.ca