Steelhead LNG signs $30M contract with engineers for Sarita Bay LNG project

Huu-ay-aht chief Jeff Cook promises HFN citizens will have a say in consultation process.

VANCOUVER, BC (February 6, 2015) – Huu-ay-aht First Nations and Steelhead LNG have signed a contract with WorleyParsons, which could be worth in excess of $30 million, for the provision of environmental, engineering, geotechnical and regulatory services at their proposed LNG Project at Sarita Bay on Vancouver Island.

WorleyParsons’ LNG activities cover more than 10 countries, and the company is a recognized global leader in the modularization of process plants. WorleyParsons has played a key role in the design, construction, and maintenance of 40 per cent of the LNG trains in operation around the world and has participated in various front end development phases of 12 proposed LNG projects in British Columbia. Over the past 25 years, WorleyParsons has also worked with numerous First Nations across BC and has provided specialized services for some of the largest projects in the province.

The proposed Project, a 24‐mtpa (million tonnes per annum) land‐based facility, is one of the largest proposed LNG projects in British Columbia. The new contract will encompass environmental impact assessments, preliminary Front End Engineering and Design (pre-FEED) studies, geotechnical investigations, and permitting approvals support for the project. WorleyParsons’ environmental team, with experience permitting similar facilities worldwide, will be supported by Hemmera, a Canadian environmental consultancy, creating a team of leaders in environmental and social sciences with expertise in Environmental Assessment, marine and terrestrial ecology, and experience working with First Nations.

“WorleyParsons and Hemmera bring local knowledge and global proficiency to the project, and we have faith in the process set out before us,” explained Huu-ay-aht Councillor John Jack. “Huu-ay-aht looks forward to working with both and moving into the future.”

The new contract is an extension of the strategic relationship that already exists between WorleyParsons, Steelhead LNG and Huu-ay-aht First Nations. WorleyParsons played a key role in the recently completed Preliminary Assessment & Screening stage of the proposed Project.

“We’re pleased to formalize our relationship with a world leader like WorleyParsons, who contribute their tremendous LNG experience and expertise,” said Nigel Kuzemko, CEO, Steelhead LNG. “This deal is a reflection of our commitment to Huu-ay-aht citizens and British Columbia at large to investigate possible environmental impacts of the project, along with other technical and economic aspects, prior to making any decision to proceed with development.”

WorleyParsons’ employees will support the project with technical personnel from its offices in Burnaby, BC, and London, England. In addition, the partnership will offer regional employment opportunities.

Huu-ay-aht to participate in studies

“Huu-ay-aht citizens will participate in the environmental studies and geotechnical investigations on Huu-ay-aht land, and they will provide crucial insight as well as local, historical and traditional knowledge about the proposed site and surrounding region,” said Jeff Cook, Elected Chief Councillor of the Huu-ay-aht First Nations.

The contract marks the first major milestone for the proposed Project since Huu-ay-aht citizens voted in favour of continuing to explore the proposed project at their People’s Assembly on November 29, 2014.

“In the lead up to our People’s Assembly vote in November, and since then, our citizens identified a wide range of environmental issues that are important to them,” said Jeff Cook.“Huu-ay-aht has a strong relationship with Steelhead, and our Nation is confident that this will also be true with WorleyParsons and Hemmera. We look forward to working closely with their personnel to examine issues raised by citizens over the coming months.”

WorleyParsons will begin the newly awarded activities for the proposed Project immediately. The investigative field work is expected to stimulate economic opportunities and spending in the region through the contracting and use of local wildlife monitors, boat charters, and accommodation and hospitality service providers.

If a Final Investment Decision to build the proposed LNG facility is made in 2018, it is expected that up to 4,000 jobs would be created during the construction phase, with 300 to 400 full-time jobs created when the plant is operational. In addition, the proposed Project would generate hundreds of spin-off jobs and business opportunities in the Alberni Valley in many sectors, including: business administration, hospitality, manufacturing, first aid, accommodation, recreation, tourism, transportation, catering, security and other service sectors. This includes local spin-off jobs with restaurants, schools, grocery stores, hotels, hospitals and providers of medical, business, heavy machinery maintenance, industrial and other services.

— Contributed

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