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

Concerns about economic viablity led to a decision to scrap plans to build a $37.5-million liquefied natural gas facility near Mill Bay.

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.

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.”

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



robert.barron@cowichanvalleycitizen.com

Like us on Facebook and follow us on Twitter

Just Posted

‘Amazing Race Canada’ competitors face Cowichan challenge

They drove Corvettes, mastered falconry basics, and even ate blueberry pie on Day 3

EDITORIAL: Truth has to lead politicians online

The public deserves accountability and professionalism from its politicians

Discontent City argues that it’s keeping occupants safe

Hearing continuing today, July 18, at B.C. Supreme Court in Nanaimo

Island fire chief urges residents to respect fire ban

Prohibition on recreational fires went into effect today at noon

UPDATED: Site of falling tree fatality deemed ‘safe’ by recreation officer

Ripple Rock Trail was assessed for danger trees in March: province

VIDEO: Trudeau shuffles familiar faces, adds new ones to expanded cabinet

Justin Trudeau shuffles his front bench Wednesday to install the roster of ministers that will be entrusted with leading the Liberal team into next year’s election.

B.C. to add hundreds of taxis, help cab companies modernize

Ride hailing companies can apply by the fall of 2019

BC Summer Games ready to begin on Vancouver Island

More than 2,000 athletes will compete in 18 sports from Friday to Sunday

Plenty of heroes in Thai cave rescue, says B.C. diver

Erik Brown reflects on team effort that brought 12 boys and their coach to safety

Funding available to replace infected B.C. hazelnut trees

B.C. Hazelnut Growers to recieve $300,000 over three years to battle eastern filbert blight

Woman charged after eight dogs seized from hotel room

Sixteen dogs recently seized from Adams and her daughter in Quesnel

Tires slashed in Duncan overnight

Mounties are asking for help after a slew of slashings in Duncan

High risk of fire causes closure of Trans Canada Trail section in south Nanaimo

RDN says 21-kilometre section is mostly on Island Timberlands land

Owner of B.C. fruit stand recounts ‘flames popping up everywhere’ from wildfire

The Mount Eneas wildfire is burning at about 200 hectares south of Peachland

Most Read