The big announcement never came but 2014 ended with a flurry for Pacific NorthWest LNG.
The company, which proposes to construct a major LNG terminal on Lelu Island, had been planning on making a final investment decision (FID) worth $36 billion by the end of the year. Instead, Pacific NorthWest LNG and its parent company Petronas delayed that decision.
Despite the delay, the LNG giant has rattled off a number of major agreements since the FID delay announcement.
On Dec. 22, the Kitselas First Nation and Pacific NorthWest LNG announced the signing of an Impact Management Benefits Agreement (IMBA) term sheet. The term sheet is an integral step toward concluding negotiations and finalizing an agreement between the two parties.
“Our agreement with Pacific NorthWest LNG addresses the environmental and social safeguards we require in negotiations, as well as the delivery of economic, employment and educational benefits for our community,” said Kitselas Chief Joe Bevan. “These core components mean substantial benefits for our community – now and in years to come.”
As part of the term sheet, Pacific NorthWest LNG and Kitselas First Nation have committed to working together in an atmosphere of mutual respect and co-operation regarding the permitting, monitoring, construction and operations of the Pacific NorthWest LNG project.
“I would like to commend Chief Joe Bevan for his vision and goal of building a mutually-beneficial relationship between the Kitselas First Nation and Pacific NorthWest LNG,” said Michael Culbert, president of Pacific NorthWest LNG. “Our project represents a generational opportunity that will provide economic benefits, as well as education and business opportunities for the Kitselas First Nation.”
On Dec. 19, the Japanese chemicals firm Mitsubishi Gas Chemical (MGC) joined the upstream firm Japex in the proposed Pacific NorthWest LNG project despite what MGC called an expected project delay.
MGC said it has set up a wholly-owned subsidiary MGC Montney Holdings to acquire a 10 per cent share in Japex Montney, which owns a 10 per cent stake in the project.
The $92 million acquisition will allow MGC to take 120,000 t/yr of LNG from the project once the deal is completed.
It plans to use the imported LNG from Canada as feedstock for its Japanese chemicals plants in an effort to improve its competitiveness.
This leaves Petronas with 62 per cent of the project, China’s state-controlled Sinopec 15 per cent with Japex and India’s state-controlled oil IOC 10 per cent each and state-owned oil firm Petroleum Brunei with three per cent.
These two announcements come on the heels of a historic landmark deal between Pacific NorthWest LNG and the District of Port Edward that signed a $150 million taxation agreement on Dec. 15 and an impact benefit agreement with the Metlakatla Governinc Council on Dec. 18.
“We have weighed the potential benefits, with the impacts of the terminal proposed for Lelu Island and have worked to negotiate the best agreement for Metlakatla,” Chief Harold Leighton said at the time of the agreement signing.