First Nations become partners in Canadian pipe to LNG terminal

Platts ^ | Apr 9, 09 | Platts Gas Daily

[thackney]

British Columbia is to help to facilitate the participation of a number of First Nations in the recently approved Kitimat to Summit Lake Pipeline Looping Project, also known as the KSL project.

The C$1.2-billion ($971 million), 1 Bcf/day KSL system, approved by federal agencies in March, would run roughly 287 miles from Summit Lake to the Kitimat liquefied natural gas export project along the Pacific coast.

Under the deal with the province, First Nations will secure a direct interest in Pacific Trail Pipelines LP, which is developing the KSL system. First Nations along the pipeline will receive C$3 million as an incentive for the ratification process and a further C$32 million that ensures the First Nations have an equity position in the project.

"This project is an excellent example of how government, communities and industry can work together to help create economic development activities," British Columbia Energy, Mines and Petroleum Resources Minister Blair Lekstrom said Wednesday. "This agreement provides the means for First Nations to develop a long-term, mutually beneficial partnership with industry."

"First Nations have channeled their right to use and occupation of land into nation-building investments in the mainstream economy," Carrier Sekani Tribal Chief David Luggi said.

The pipeline is expected to be operational by the end of 2013.