Steelhead LNG stops work on Kwispaa LNG project near Bamfield

Huu-ay-aht First Nations ‘deeply disappointed; Steelhead says funding is the problem

Steelhead LNG and Huu-ay-aht First Nations have submitted their plans for Kwispaa LNG project, which they hope to build in Sarita Bay on Vancouver Island’s west coast. FILE PHOTO

Steelhead LNG has stopped work on the Kwispaa LNG project in Sarita Bay on Vancouver Island’s west coast, throwing the project into doubt.

Huu-ay-aht First Nations Chief Councillor Robert Dennis Sr. and Hereditary Chief Derek Peters posted an open letter to its citizens on Feb. 15 saying that they had been notified by Steelhead LNG about the stoppage and are “deeply disappointed” in the announcement.

“We are saddened by the decision of Steelhead LNG. Huu-ay-aht First Nations is a self-governing, modern treaty Nation, and we will continue to pursue our vision of establishing a healthy, prosperous and self-sustaining community, based on our three sacred principles: Hisuk ma cawak (everything is one), ?uu?aluk (taking care of…) and ?iisaak (greater respect),” Dennis Sr. and Peters wrote.

READ: Steelhead, Huu-ay-aht submit plans for Kwispaa

READ: Open house for Kwispaa LNG project

Steelhead LNG manager of communications Matt Skinner said the decision to cease work on the Kwispaa project comes down to economics. “Given the current environment in B.C., investors really need a greater degree of certainty before investing in a project such as ours,” he said Monday. “We’ve paused (work) on Kwispaa for now and are evaluating.”

He said unlike larger energy companies, Steelhead does not have revenue to depend on to fund projects such as Kwispaa. “Steelhead is funded by investors.”

He said last week’s throne speech by the B.C. government had no bearing on Steelhead’s decision. “It comes down to the challenges that exist in getting funding for these kinds of activities.”

Steelhead had already completed preliminary engineering on Kwispaa and was to begin detailed design work in early 2019. The first phase of Kwispaa was estimated to be $10 billion, with the second phase costing an additional $10 billion. This would not have included a pipeline, which was a separate part of the LNG project.

Huu-ay-aht will evaluate what the decision will mean to their business plans in the coming days and said they will update their citizens with more information at the end of February.

“Huu-ay-aht remains committed to pursuing initiatives for meaningful economic reconciliation where we create opportunities to generate value in a global context and create employment and revenue opportunities locally,” Dennis Sr. and Peters wrote.

Skinner said Steelhead LNG has not completely pulled out of the deal, but there are no plans to continue forward at this time.

“At this point we’ve ceased work. That’s not to say it will never move forward but right now we’ve ceased working on (Kwispaa).”



susie.quinn@albernivalleynews.com

Like us on Facebook and follow us on Twitter

 

Steelhead LNG and Huu-ay-aht First Nations have submitted their plans for Kwispaa LNG project, which they hope to build in Sarita Bay on Vancouver Island’s west coast. FILE PHOTO

Just Posted

Central Saanich makes moves to alieviate business transit concerns

Councillor calls for enhanced service and long-term transit passes

Science expedition to Canada’s largest underwater volcano departs Vancouver Island

Crews prepared for a two-week research mission to the Explorer Seamount

Saanich sponsors Jeux de la Francophonie giving $50,000 for the French-language Games

Couns. Susan Brice and Nathalie Chambers opposed funding, citing substantive and procedural concerns

Port Renfrew man charged with animal cruelty

Hot coffee poured on dog’s face, say police

Property registration crucial for Oak Bay’s deer contraception program

Got deer? Want them gone? Do your part, register your property!

VIDEO: Black bear caught climbing tree in Langford neighbourhood

Triangle Mountain residents on alert following bear sighting

Report of dead body in B.C. park actually headless sex doll

This discovery, made at Manning Park on July 10, led police to uncovering two other sex mannequins

Grand Forks fire chief found to have bullied, harassed volunteer firefighter: report

WorkSafeBC, third-party human resources investigation looking into allegations complete

Taekwondo instructor, 21, identified as B.C. bat rabies victim

Nick Major, 21, an instructor at Cascadia Martial Arts in Parksville

15-year-old with imitation gun caused ‘dynamic’ scene at Nanaimo mall

No one was harmed in Monday’s incident, say Nanaimo RCMP

RCMP investigating alleged ‘sexual misconduct’ by cyclist on BCIT campus

BCIT said they were reviewing video evidence of the incident

New home cost dips in B.C.’s large urban centres

Victoria, Kelowna, Vancouver prices decline from last year

Graphic suicide scene edited out of ‘13 Reasons Why’ finale

Suicide prevention groups support the decision

Nine kittens and cats rescued after being locked in bins in northern B.C.: SPCA

SPCA says cats were starving, and matted with feces and urine

Most Read