BC.., First Nations reach accord on LNG plans

Pact with 28 bands is expected to lessen investment worries

CALGARY — The head of the fledgling liquefied natural gas industry in British Columbia is calling the provincial government’s announcement of revenue-sharing agreements with 28 First Nations a major step forward.

“I think this is beneficial not just for the industry but for the First Nations,” B.C. LNG Alliance president David Keane said in an interview Monday.

He said signing 28 bands to agreements with the B.C. government will help reduce the risk of final investment decisions for his member companies, and added that the association had been working with the government on implementing new tax and emissions regulations for the industry. “We see the end in sight and we will get the clarity and the certainty to get these projects across the finish line,” he said.

His organization represents the companies that have proposed seven of those LNG projects for the B.C. coast, which would super-cool natural gas to its liquid state and then ship that liquid to markets in Asia.

During the weekend, B.C. Aboriginal Relations and Reconciliation Minister John Rustad said the province had now signed revenue-sharing agreements with 28 First Nations that would be affected by the development of LNG projects and connecting pipelines. The province had previously announced pipeline benefits agreements with only eight First Nations.

On Monday, Rustad said the 28 revenue-sharing agreements will help bring the province closer to its goals for LNG in B.C.

“It’s very encouraging that the Nations are signing onto the agreements and wanting to be a part of this once in a lifetime opportunity,” Rustad said in an interview.

Premier Christy Clark has said that one of her government’s goals is to see three LNG projects up and running by 2020.

A number of companies, including Petronas Nasional Bhd, BG Group and Chevron Corp. have deferred previously announced timelines for sanctioning their projects. As a result, numerous analysts have said the deferrals have decreased the likelihood three projects will be operational in that time frame.

Rustad said the province continues to negotiate with seven additional groups including the 3,600-person Lax Kw’alaams, whose members voted last week against a $1.14-billion benefits package associated with Petronas’ Pacific Northwest LNG project and connecting pipeline.

The Lax Kw’alaams members that haven’t voted yet are expected to vote on the massive benefits package this week. Analysts have said the benefits agreement offered to the group could be precedent-setting as companies continue to negotiate with First Nations. Pacific Northwest LNG did not respond to a request for comment.

Rustad said the B.C. government would have unanimous support of affected First Nations if those seven additional groups signed benefits agreements with the government.