The site of the proposed LNG facility near Mill Bay. The project has been scrapped by proponent Steelhead LNG. (File photo)

Plans for a LNG facility near Mill Bay shelved

Vancouver-based Steelhead LNG determined facility wouldn’t be competitive

Plans to build a $37.5-million liquefied natural gas facility in Mill Bay have been scrapped.

The Malahat Nation and the Vancouver-based Steelhead LNG announced in 2016 their plans to partner to develop an LNG facility at the Bamberton site, south of Mill Bay.

But Steelhead LNG said in a press release on Dec. 1 that after exploring the project’s possibilities for almost two years, it has been determined that an LNG facility at the site wouldn’t be financially competitive.

However, Steelhead LNG said in the release that it is continuing to explore the possibilities of the proposed Kwispaa LNG project, located southwest of Port Alberni.

Steelhead said it is “grateful” for the time and effort of the Malahat Nation’s chief and council, administration and community in considering the Malahat LNG project.

“We would like to thank all the First Nations and community members who expressed an interest in the project and took time to provide us with feedback,” the release said.

The proposed Malahat facility would have had an expected capacity of up to six-million tonnes per year, and would have included floating liquefaction facilities moored to the shoreline and minor supporting land-based infrastructure.

Between construction, operation and decommissioning, it was expected to have provided up to 30 years of revenue generation for local, provincial and federal governments, as well as up to 200 long-term positions and training and employment opportunities for members of the Malahat First Nation and other Island residents.

FOR RELATED STORY, CLICK HERE

A statement from the Malahat Nation said it is is exploring many opportunities related to the Bamberton Industrial Lands. The release said that while the project with Steelhead LNG is ultimately not moving forward, it was important for Malahat Nation to evaluate the opportunity as a community.

“This was a very important discussion for our community as demonstrated through the high level of engagement from Malahat members over the last two years,” the statement read.

“We appreciate and thank everyone who showed an interest in the project, brought forward their perspectives and provided input. Importantly, Malahat members played an instrumental role in collecting data during the early field studies for the project. We now have more information about Bamberton and the surrounding area that we will use to support our community planning and make decisions on potential future developments in our traditional territory.”

Sonia Furstenau, the Green MLA for the Cowichan Valley in whose riding the project would have been constructed, said the proposed project had been causing a great deal of concern in the area and agreed that its demise opens up other opportunities for the Malahat Nation.

“This project wasn’t appropriate for the area so this announcement is an opportunity for the Malahat Nation to explore other options and projects that have long-term sustainability,” Furstenau said.

“There would have been risks to the environment and safety if the project proceeded. Having an LNG pipeline underwater and having tanker ships move through the Saanich Inlet were concerns on both sides of the inlet.”



robert.barron@cowichanvalleycitizen.com

Like us on Facebook and follow us on Twitter

Just Posted

Tommy Chong says cannabis legalization makes him proud to be a Canadian

Legendary marijuana advocate and comedian celebrates cultural milestone at Kelowna event

Cannabis shops still in limbo in Cowichan Valley

Future uncertain as marijuana becomes legal

DCS Chargers play to sixth at B.C. Christian soccer tourney

Coaches proud of team’s performance in Langley

Lorraine Nygaard, Louise Rose, and combo to shine at Crofton this Sunday

Jazz: smooth and soulful, is on the menu at Osborne Bay Pub

Junior bantam Cowichan Bulldogs play to tie with Southside

Peewee Bulldogs lose despite lots of great performances

Coming up in Cowichan: Pair of Mill Bay Marine Rescue Society fundraisers

Fall Fishing Derby will benefit Mill Bay Marine Search and Rescue Mill… Continue reading

Cowichan Coffee Time

Chain of Love and Lake to Lake Walk

‘Mom, I’m in trouble:’ Canadian faces 10 years for alleged graffiti

Brittney Schneider, another tourist caught spraying message on walls of Tha Pae Gate in Thailand

Feds consulting on national anti-racism strategy behind closed doors

Heritage Minister Pablo Rodriguez says people still face systemic racism in some communities

Enbridge aims for mid-November to finish B.C. pipeline repair after blast

A natural gas pipeline that ruptured and burned near Prince George caused an explosion and fireball

How to get government cheques if Canada Post staff go on strike

The Canadian Union of Postal Workers said members could go on rotating strikes as early as Monday

Anti-SOGI school trustee files defamation lawsuit against BCTF president

Barry Neufeld says Glen Hansman’s words caused him “indignity,” “personal harassment,” and “anxiety”

Ocean ‘blob’ returns to B.C.’s North Coast

A 2,000 kilometre patch of warm ocean water could signal a warm winter in Prince Rupert

Most Read