Office of the Premier

New agreements strengthen economic future for Lax Kw’alaams

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Office of the Premier

New agreements strengthen economic future for Lax Kw’alaams

Contacts
Stephen Smart
Press Secretary
Office of the Premier
778 389-6202
Contacts
Stephen Smart
Press Secretary
Office of the Premier
778 389-6202

Backgrounders

Lax Kw’alaams Band Agreements

There are three components of today’s milestone between the Lax Kw’alaams Band and the Province of British Columbia, with specific benefits linked to the construction and operation of Pacific NorthWest LNG, and its connecting pipeline, the Prince Rupert Gas Transmission Natural Gas Pipeline Benefits Agreement.

Lax Kw’alaams First Nation LNG Benefits Agreement

  • Funding totalling $98.5 million:
    • $3 million. 
    • $3 million for implementation and community engagement.
    • $500,000 for communications infrastructure.
    • $22 million, for the Trust Contribution.
      • Upon PNW LNG’s final investment decision, $7 million will be released from the trust fund, with the remaining balance available once facility construction begins.
  • Spending Commitments
    • $50 million, for potential road or other transportation infrastructure updates after PNW LNG commences construction.
    • Plus the $20 million, provided earlier as part of B.C. on the Move, the B.C. government’s 10-year transportation plan, for road improvements conducted along the Tuck Inlet Road. The Tuck Inlet road project included a 17.5-kilometre paving upgrade from a connecting ferry dock, replacing an aging bridge and improving safety and accessibility for residents, businesses and tourists to and from the Lax Kw'alaams community.
  • Lands: Crown land transfers totalling approximately 1,942 hectares, including:
    • 60-hectare Wampler Way parcel, to be transferred jointly to the Lax Kw’alaams Band and Metlakatla First Nation.
    • 40-hectare Quarry parcel, transferred on the effective date of the agreement.
    • Additional lands transferred over a five-year timeframe once construction on PNW LNG begins.

Coastal Fund

  • a one-time benefit of $295,000
  • ongoing annual benefit of $590,000
  • Production benefits of $0.024 per tonne once LNG is being shipped from an LNG facility.

Prince Rupert Gas Transmission Natural Gas Pipeline Benefits Agreement

  • Payments totalling $4.18 million
  • Additional $815,000 per year, starting on the first anniversary of the pipeline in-service date. 

Community Benefits

The Lax Kw’alaams Band will use funding for:

  • community development projects and social initiatives.
  • investment in renewable energy projects and community energy planning.
  • marine emergency response initiatives, including participating in new response programs.
  • developing greenhouse gas off-set projects and environmental off-set or remediation projects.
  • education and skills training, in particular for Lax Kw’alaams members to participate in business or employment opportunities created by LNG projects.
  • economic development, including investment that supports LNG development activities and transportation infrastructure.
LNG industry a game-changing prospect for B.C.

Global trade of LNG has increased exponentially in recent years and is poised to continue as energy demands escalate and the global market improves. Countries that are expected to lead global economic growth, such as China and India, are interested in securing new supplies of the world’s cleanest-burning fossil fuel. Other countries, such as Japan and South Korea, which have been the world’s largest importers of LNG, are looking for opportunities to diversify their energy supply options.

British Columbia’s vision for LNG exports began in September 2011 with the release of Canada Starts Here: The BC Jobs Plan - a plan to strengthen local economies by getting B.C.’s products to new markets.

As part of the BC Jobs Plan, the provincial government set a goal of diversifying the province’s natural-gas sector and developing a means to export to other markets. To achieve this goal, an LNG strategy was developed that set in motion a plan to build the industry. The strategy captured the attention of large companies and global investors, which have since come forward with numerous LNG proposals, now at various stages of development.

There are approximately 20 LNG proposals looking to export British Columbia’s clean natural gas to markets in Asia at this time.

Collectively, the LNG industry holds the potential for tens of thousands of jobs and new economic opportunities for British Columbia.

A full list of projects can be found online: http://lnginbc.gov.bc.ca/tile/bc-lng-projects/

Pacific NorthWest LNG

Pacific NorthWest LNG is comprised of PETRONAS, Sinopec, JAPEX, Indian Oil Corporation and PetroleumBRUNEI.

The facility is proposed within the District of Port Edward, near Prince Rupert.

Pending a confirmed final investment decision, the facility would result in up to $36 billion in new capital spending, 4,500 new construction jobs and close to 350 permanent positions.

The facility received an Environmental Certificate from the Government of British Columbia in 2014. Canada granted approval in September 2016.

Prince Rupert Gas Transmission Natural Gas Pipeline

The Prince Rupert Gas Transmission project is a 900-kilometre natural-gas pipeline project that would deliver natural gas from a point near the District of Hudson’s Hope to the Pacific NorthWest LNG facility. Prince Rupert Gas Transmission is a subsidiary of TransCanada PipeLines Limited.

The pipeline will create 3,370 construction jobs and require 23 permanent positions once operations begin.

All major pipeline permits have been approved by the BC Oil and Gas Commission. British Columbia issued the pipeline an Environmental Assessment Certificate in November 2014.

To date, 17 of the 19 First Nations along the Prince Rupert Gas Transmission pipeline route have pipeline benefits agreements in place with the Province. The agreements with 14 First Nations along the pipeline route are public and the other agreements will be made public as they take effect. The public agreements are with the following First Nations:

  • Doig River First Nation
  • Gitxaala First Nation
  • Gitxsan First Nation
  • Gitanyow First Nation
  • Halfway River First Nation
  • Kitselas First Nation
  • Lake Babine First Nation
  • Lax Kw’alaams Band
  • Metlakatla First Nation
  • McLeod Lake Indian Band
  • Nisga’a First Nations
  • Takla Lake First Nation
  • Tl’azt’en First Nation
  • Yekooche First Nation

Natural-gas pipeline benefits agreements with First Nations are part of the B.C. government’s comprehensive plan to partner with First Nations on LNG opportunities, which includes increasing First Nations’ access to skills-training and environmental-stewardship projects.

B.C.’s pipeline benefits agreements with First Nations: http://ow.ly/nUAi308ll2K

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