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

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

A scene from the Schoolhouse Squat from October 2018, where Alliance Against Displacement members and supporters occupied the Rutherford Elementary School site, advocating for people experiencing homelessness. (News Bulletin file)
‘Schoolhouse Squat’ activists get conditional discharge in Nanaimo school occupation

Ivan Donald Drury, Tingchun (Listen) Chen sentenced in provincial court in Nanaimo

Tla-o-qui-aht First Nation elected chief councillor Moses Martin, who was also Chantel Moore’s grandfather, speaks to media in Port Alberni on Aug. 16, 2020, during a visit from NDP leader Jagmeet Singh following the police shooting of Chantel Moore. (Elena Rardon photo)
Mother of two shot by police in critical condition says Tla-o-qui-aht First Nation chief

Community ‘devastated’ by third member of 1,150-person Vancouver Island nation shot in less than a year

Condemned building of the Twin Gables Motel in Crofton is not safe and yet a teen has been climbing around on the roof while others were ripping the siding off the building. (Photo submitted)
Destructive behaviour by teens wreaking havoc on Crofton

Residents becoming fed up with the constant vandalism and fires

A fire destroyed a commercial building on Idlemore Road early Tuesday. The fire is under investigation. (Kenn Mount photo)
Early morning fire destroys new Sooke distillery

Firefighters still investigating cause of Island Shiners Distillery blaze early Tuesday

Keith MacIntyre - BC Libertarian
Penticton’s Keith MacIntyre new leader of the B.C. Libertarian Party

The Penticton businessman was voted in by members of the party on May 8

RCMP are searching for Philip Toner, who is a 'person of interest' in the investigation of a suspicious death in Kootenay National Park last week. Photo courtesy BC RCMP.
Man sought in suspicious Kootenay death found in Lake Country

Philip Toner is a person of interest in the death of Brenda Ware

Vernon North Okanagan RCMP reported to 287 mental health calls between Jan. 1, 2021, and May 1. (Black Press files)
‘It’s not the police’s responsibility to deal with mental health calls’: Vernon RCMP

RCMP remind public to take care of mental health and well-being, while better solutions are sought

Thompson Rivers University campus is in Kamloops, B.C. (KTW file photo)
Thompson Rivers the 1st B.C. university to supply free menstrual products

The university will offer the products this September

Fraser Health is using ‘targeted’ vaccination clinics in high-risk areas of the Lower Mainland. (Fraser Health photo)
B.C.’s COVID-19 decrease continues, 515 new cases Tuesday

426 seriously ill people in hospital, up from 415 Monday

B.C. Agriculture Minister Lana Popham promotes the government’s BuyBC food program in 2019. (B.C. government)
Money running out for fresh fruit, vegetables, milk in B.C. schools

‘Looking at ways to support this type of program,’ minister says

(Paul Henderson/ Chilliwack Progress file)
Experts now predict 33.6% rise in B.C. home sales for 2021

BCREA economists also predict home prices to increase by 14.3%

A boat caught on fire this morning (May 11) in Port Hardy. (Adam Harding/Port Hardy Fire Rescue Facebook photo)
Fishing boat catches fire in Port Hardy, owner’s quick thinking puts out flames

The incident is a good reminder to always have a working fire extinguisher onboard your boat

Most Read