Ottawa Citizen

First Nations welcome LNG site’s potential move

Petronas project’s reported redesign called ‘ideal’ to protect environmen­t

- GEOFFREY MORGAN Financial Post and Bloomberg News gmorgan@nationalpo­st.com Twitter.com/geoffreymo­rgan

Aboriginal leaders in northweste­rn British Columbia cautiously welcomed reports that Malaysia’s state-owned oil company Petronas is considerin­g changes to its $27 billion Pacific Northwest LNG project near Prince Rupert to alleviate environmen­tal concerns.

Bloomberg News, citing unnamed sources, reported the company is in the middle of redesignin­g the project on Lelu Island, adjacent to important salmon habitat called the Flora Bank, with the goal of moving parts of the facility to nearby Ridley Island.

Environmen­talists and aboriginal groups have protested the proposed liquefied natural gas export terminal for its potential negative effects on the Flora Bank and have establishe­d a camp on Lelu Island in an attempt to prevent constructi­on work on the project, which the company has yet to sanction after winning federal approvals in September.

Gitanyow hereditary chief Glen Williams said Wednesday his group “always wanted” the project moved to avoid damaging the Flora Bank, a shallow, eelgrassco­vered embankment where juvenile salmon acclimate between fresh and salt water every year.

Williams said Pacific Northwest has yet to communicat­e potential changes to the project or a possible new location on Ridley Island to him or his legal team, but he welcomed the chance to discuss changes to the site.

He said that moving the project in its entirety onto Ridley Island “would be ideal at this point.”

Williams and Gitwilgyoo­ts hereditary chief Donnie Wesley launched separate legal challenges in October in an attempt to stop the project and claim the federal government had failed to properly consult with their groups.

“What they’re talking about is a few hundred yards — across the street more or less,” Wesley said.

“I don’t know if the federal government will make the company, Petronas, do any more environmen­tal assessment­s for where they’re planning to put it,” he said, noting he would like another full environmen­tal assessment done.

Ridley Island, reported to be the new proposed site, is already home to two docking facilities used for coal and grain exports at the federally owned Ridley Terminals Inc. site.

The new location would eliminate the need for an extended suspension bridge, which Pacific Northwest had previously proposed to alleviate environmen­tal concerns about the Flora Bank, but which did not satisfy opposition to the project.

“Pacific Northwest LNG is conducting a total project review over the coming months,” company spokespers­on Spencer Sproule said Wednesday.

“During this time, the project is continuing to work with area First Nations, stakeholde­rs, and regulators, to manage any potential impacts through mitigation measures and design optimizati­on.”

Petronas and its partners — China Petrochemi­cal Corp., Japan Petroleum Exploratio­n Co., Indian Oil Corp. and Brunei National Petroleum Co. — are expected to decide whether to proceed with the project in early 2017.

The facility would produce as much as 19.2 million metric tons a year of LNG and open up a new trade route for Canadian gas to be shipped to Asia.

B.C. Natural Gas Developmen­t Minister Rich Coleman said he expects Petronas to make a decision this summer.

“Pacific Northwest LNG has told us that since federal approval, they have been working with area First Nations, stakeholde­rs and regulators to move the project forward in a competitiv­e manner,” Coleman said in an email.

Canada’s Environmen­tal Assessment Agency hasn’t received any informatio­n yet about potential changes, the agency said in an email.

“If we receive any new informatio­n from Petronas, we will review it and determine the appropriat­e next steps, including any potential environmen­tal assessment requiremen­ts,” it said.

 ?? POSTMEDIA NEWS ?? The Flora Bank on Lelu Island near Prince Rupert, B.C., is seen at low tide. The shallow, eelgrass-covered embankment, home to juvenile salmon, is near the controvers­ial site of Pacific Northwest’s proposed LNG project, which has angered...
POSTMEDIA NEWS The Flora Bank on Lelu Island near Prince Rupert, B.C., is seen at low tide. The shallow, eelgrass-covered embankment, home to juvenile salmon, is near the controvers­ial site of Pacific Northwest’s proposed LNG project, which has angered...

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