Kitimat LNG pipeline takes another step forward

COMMENT: What is the provincial government doing now? While the legal duty to consult is a government responsibility, the task of bringing First Nations onside (ie, the accomodation part of the negotiation) with projects like this pipeline has been left up to the proponent. As it still is, at least on the surface, and at least for the moment, with IPPs and hydro projects.

But with this pipeline, the provincial government is kicking in $3 million to cover FN's costs, and $32 million to buy an equity position for FNs in the pipeline. Good grief.

It invokes an image of government and companies slapping dollar bills on the table, one after the other, until First Nations' opposition just wilts away. What is bribery?

And what about the greenhouse gas emissions aspect? Isn't this expenditure greasing the rails for combustion of more fossil fuels? BC-produced fossil fuels. Square the circle with those virtuous electricity policies, please.

Don't natter at folks who are concerned about the impacts of hydro projects on streams around BC, don't argue that there's a higher imperative to ramp up renewable energy generation to reduce BC use of fossil fuels. Not when you're making statements like this from the other side of your face.

Wouldn't this be a better target for Tzeporah Berman and her PowerUP brigade?

Blast away!

Scott Simpson,
Vancouver Sun
April 9, 2009

Project receives overwhelming support from first nations along line

A proposed $1.2-billion natural gas pipeline took another major step forward on Wednesday with the announcement of overwhelming support from first nations along the route.

The Kitimat to Summit Lake pipeline, proposed to carry gas from northeast British Columbia to a liquid natural gas (LNG) terminal at Kitimat sea port, already has federal and provincial environmental approvals.

Proponents still need customers to sign up to run their gas through the line, and a commitment from proponents of the LNG plant, but obtaining the assent of aboriginal communities along the 463-kilometre route across the province was equally crucial.

"This is a pretty unique project that has 15 of 17 first nations onside and I think that speaks volumes to the work that's been done on the project on the front end, and the recognition by first nations of the benefits it can bring to those people," said Minister of Energy, Mines and Petroleum Resources Blair Lekstrom.

The province is kicking money into the pipeline -- $3 million to cover the first nations' costs to examine the project, and $32 million to provide them with what Lekstrom described as an "equity position" in both the construction and long-term operation of the proposed pipeline.

Total estimated value of the project, which envisions piping gas from the northeast, liquefying it, and shipping it to markets in Asia, is $4.2 billion, including the pipeline, improvements to Kitimat port terminal, and the LNG plant.

"We have to work with first nations. If they didn't see a benefit in it, the project would not likely be able to proceed, or certainly if it was, not at the same magnitude," Lekstrom said.

Greg Weeres, vice-president of operations and engineering for pipeline proponent Pacific Northern Gas, said the company is now working with LNG terminal proponents to sign up customers to book space on the pipeline and capacity at the terminal.

"We have certainly addressed many of the environmental issues we needed to address up front," Weeres said.

"Now we are putting our focus on finalizing the commercial arrangements."

He said the pipeline and the terminal could be in operation by 2013.

ssimpson@vancouversun.com

Posted by Arthur Caldicott on 09 Apr 2009