BC Gov News

Kitsumkalum First Nation and its members will share directly in the benefits of liquefied natural gas (LNG) development on B.C.’s north coast after reaching two agreements with the Province.

“LNG Canada is a promising economic opportunity for Kitimat, Kitsumkalum and our entire province,” said Scott Fraser, Minister of Indigenous Relations and Reconciliation. “This is about Kitsumkalum ensuring tangible benefits and opportunities that meet the priorities of its community.”

The Coastal Fund Agreement and LNG Benefits Agreement provide comprehensive and sustainable funding to Kitsumkalum for the life of the LNG Canada project. The agreements ensure Kitsumkalum members will benefit from training, jobs, updated infrastructure, business opportunities and the increased revenue and growth that this project will bring.

“I am confident that the LNG Benefits and Coastal Fund Agreements adequately address environmental issues and will preserve Kitsumkalum title and rights and food security for our people,” said Kitsumkalum Chief Don Roberts. “With these agreements in place, I am supportive of the LNG Canada project and other LNG projects where cumulative impacts, both environmental and socioeconomic, are mitigated to ensure continued Aboriginal Title and Rights are enjoyed by the people of Kitsumkalum.”

The LNG Benefits Agreement provides initial funding to assist Kitsumkalum in preparing for and managing the impacts of LNG development. A total of $20.35 million over four years will be used to create a land and economic development fund, a community development fund and a legacy fund.

The Coastal Fund Agreement will provide an annual base payment plus incremental project funding that reflects the volume of LNG that is being produced. The total annual payment once the facility is in operation is anticipated to be in the range of $750,000, though this will vary depending on the volume of LNG that is shipped.

“The LNG Canada project is creating long-term, economic prospects for the entire province and this agreement ensures Kitsumkalum benefits,” said Michelle Mungall, Minister of Energy, Mines and Petroleum Resources.

With LNG, the Province is making sure real benefits reach people throughout the province while protecting the natural environment and partnering with First Nations.

Quick Facts:

• Kitsumkalum has approximately 770 members and is located northwest of Terrace.
• The Kitsumkalum Indian Band, a tribe proper of the Tsimshian Nation, has constitutionally protected Aboriginal title and rights to resources within the Kitsumkalum traditional territory. Future LNG projects will still need to pursue a meaningful consultation process with Kitsumkalum.
• The Province supports LNG development with four conditions:
  • LNG projects must offer jobs and training for British Columbians, especially jobs for local people.
  • British Columbians must get a fair return for B.C. resources.
  • LNG projects must secure full partnerships with local First Nations.
  • LNG projects must complete a made-in-B.C. environmental assessment and achieve the greenhouse gas targets contained in CleanBC.
• On March 25, 2019, the Province introduced legislation to deliver the fiscal setting needed for LNG Canada’s $40-billion project in Kitimat.
• LNG Canada announced its final investment decision on Oct. 1, 2018.
• Economic benefits of the LNG Canada final investment decision include:
  • $24 billion of direct private-sector investments in B.C.;
  • $23 billion in new government revenues over the life of the project, creating new resources for health care, schools, child care and services for British Columbians; and
  • significant funding for First Nations capacity building, training and education, contracting and employment, and community contributions.
• LNG Canada is a joint venture company comprised of:
  • Shell Canada Energy (40%), an affiliate of Royal Dutch Shell plc;
  • Petronas, through North Montney LNG Limited Partnership (25%);
  • Affiliates of PetroChina (15%);
  • Korea Gas Corporation (Kogas) (5%); and
  • Mitsubishi Corporation (15%).

Learn More:

To read the agreements in full, visit: https://www2.gov.bc.ca/gov/content/environment/natural-resource-stewardship/consulting-with-first-nations/first-nations-negotiations/first-nations-a-z-listing/kitsumkalum-first-nation