Twelve days after announcing it has delayed its final investment decision, Pacific NorthWest LNG announced Monday a 25-year agreement-in-principle to support Port Edward infrastructure and services to the tune of $150 million.
The landmark agreement guarantees the District of Port Edward $3.25 million each year and escalates over the life of the agreement.
The $150 million will be paid out in the form of property taxes and front-end contributions by Pacific NorthWest LNG for district infrastructure improvements.
“Pacific NorthWest LNG intends on being a long-term positive contributor to the District of Port Edward and this agreement-in-principle serves as the blueprint for a multi-decade co-operative relationship that will benefit all residents of Port Edward,” said Pacific NorthWest LNG President Michael Culbert.
“I would like to thank Mayor Dave MacDonald, Port Edward Council and district staff for their dedication and hard work to get to this day.”
The Minister of Community, Sport and Cultural Development, Hon. Coralee Oakes, was in attendance to celebrate the signing of the agreement-in-principle. The Province has committed to introducing legislation at the earliest opportunity in 2015 to enable this agreement under the Community Charter.
“I can think of no other community in British Columbia that has the ability to deliver on a project to ensure that the results will be successful for decades and decades to come,” said Minister Oakes at the signing ceremony.
“Liquefied natural gas, and Pacific NorthWest LNG in particular, represents the chance to bring our children who have gone elsewhere in search of opportunity back home to Port Edward,” said Mayor MacDonald.
“The bold agreement with Pacific NorthWest LNG was reached on our terms and will ensure that Port Edward residents benefit from the LNG opportunity in the form of increased services, as well as infrastructure upgrades and ultimately, improved quality of life.”
The agreement is subject to the project proceeding to construction and will be effective upon the execution of a long-term lease with the Prince Rupert Port Authority.
~With files from Martina Perry