PALMER: LNG PROJECT REMAINS ‘IFFY’
Double jeopardy: Environmental approval has to come from both federal government and Lax Kw’alaams First Nation
Joining Premier Christy Clark this week in celebrating the latest step toward development of a liquefied natural gas industry was federal government representative James Moore, the country’s industry minister and senior cabinet member from B.C.
Clark thanked Moore “for all of the work that he’s done to make sure that LNG is on the federal agenda,” including support in bringing about a couple of encouraging tax changes for the industry.
Moore thanked Clark and her government “for the great work and leadership that you’ve shown” on LNG development in general and the project at hand in particular — the $36-billion proposal from a Malaysian-led consortium.
“One of the largest foreign direct investments into the Canadian economy ever and it’s obviously going forward,” said Moore, then quickly added: “Of course, the environmental assessment is still ongoing, but we want to get to a yes.”
For all the federal minister’s enthusiasm, getting to “yes” on that score is not a foregone conclusion for the Pacific NorthWest LNG project.
The federal environmental assessment of the project resumed earlier this month after a lengthy delay to gather more information about the proposal to locate the LNG terminal itself on an island near Prince Rupert.
There’s been speculation that the assessment could be complete by late summer or early fall. Presuming the panel were to recommend approval with conditions, that would normally clear the way for a favourable nod from Moore’s colleague, Environment Minister Leona Aglukkaq.
The timing of any decision could be complicated by the looming date for the federal election, namely Oct. 19. Further delays in the assessment could leave the final call to whichever party (or parties) takes power after Canadians have voted. Even if the project were to successfully navigate the federal assessment process, it faces a kind of double jeopardy on the environmental front because of the objections from the Lax Kw’alaams First Nation.
The terminal would be located within the traditional territory of the Lax. And notwithstanding the consortium’s offer of $1.1 billion over 40 years to secure approval, band members balked unanimously at a series of recent public meetings.
Their paramount concern was potential damage to the salmon fishery, specifically a sensitive habitat located next to the proposed loading terminal for the LNG tankers.
“Lax Kw’alaams is open to business, to development and to LNG,” explained community leader and mayor Garry Reece in a followup public statement. “Hopefully, the public will recognize that unanimous consensus in communities — and where unanimity is the exception — against a project where those communities are offered in excess of a billion dollars sends an unequivocal message this is not a money issue: This is environmental and cultural.”
He cautioned against any attempt to proceed over the Lax objections.
“Only Lax Kw’alaams have a valid claim to aboriginal title in the relevant area — their consent is required for this project to proceed,” said Reece. “There are suggestions governments and the proponent may try to proceed with the project without consent of the Lax Kw’alaams. That would be unfortunate.”
Legally, constitutionally and politically ruinous as well, as the premier all but admitted in ruling out the possibility Wednesday.
“It’s been my view all along that we can get agreements with First Nations, and that’s our intention with the Lax as it has been with other First Nations along the way,” Clark told reporters. “We have been deeply involved with the Lax, working with them and the communities up there. All along throughout this process we have said to proponents we are here to help.”
Plus the Liberals must have noted the obvious failure on the part of the consortium to do the necessary advance work with the community. More than $1 billion on the table and it drew not one vote of support? Somebody screwed up.
Far from rolling over the Lax, Clark this week dispatched her chief of staff Dan Doyle to try to pick up the pieces by addressing the band’s concerns about the fishery directly.
Presuming he can get things back on track, that, too, could take some time, same as with the federal assessment process.
The Liberals are pledged to recall the legislature, sometime after next Thursday’s scheduled adjournment of the spring session, to enact the enabling legislation for a comprehensive project development agreement with Malaysia’s Petronas and its partners in Pacific NorthWest LNG. The timetable remains up on the air, as does the date by which Petronas and its partners will reach a “final investment decision” on the Pacific NorthWest LNG project.
Pressed on that point at the media conference, project president Michael Culbert didn’t rule out the possibility of a “soft” (qualified) approval by the consortium in the next month or two.
However “the actual final investment date will be subject to the Canadian environmental assessment process and also the legislation associated with the project development agreement,” Culbert said. “What we’re trying to do is look at all the aspects of the final investment decision and get to the point where a commercial investment decision can be made. Then we can move on once the conditions are met.”
The project remains “iffy” in other words, which surely has been one of the familiar characteristics of the LNG drive since Premier Clark launched it four years ago.