Steelhead LNG and Huu-ay-aht First Nations have submitted their plans for Kwispaa LNG project, which they hope to build in Sarita Bay on Vancouver Island’s west coast. FILE PHOTO

Steelhead LNG stops work on Kwispaa LNG project near Bamfield

Huu-ay-aht First Nations ‘deeply disappointed; Steelhead says funding is the problem

Steelhead LNG has stopped work on the Kwispaa LNG project in Sarita Bay on Vancouver Island’s west coast, throwing the project into doubt.

Huu-ay-aht First Nations Chief Councillor Robert Dennis Sr. and Hereditary Chief Derek Peters posted an open letter to its citizens on Feb. 15 saying that they had been notified by Steelhead LNG about the stoppage and are “deeply disappointed” in the announcement.

“We are saddened by the decision of Steelhead LNG. Huu-ay-aht First Nations is a self-governing, modern treaty Nation, and we will continue to pursue our vision of establishing a healthy, prosperous and self-sustaining community, based on our three sacred principles: Hisuk ma cawak (everything is one), ?uu?aluk (taking care of…) and ?iisaak (greater respect),” Dennis Sr. and Peters wrote.

READ: Steelhead, Huu-ay-aht submit plans for Kwispaa

READ: Open house for Kwispaa LNG project

Steelhead LNG manager of communications Matt Skinner said the decision to cease work on the Kwispaa project comes down to economics. “Given the current environment in B.C., investors really need a greater degree of certainty before investing in a project such as ours,” he said Monday. “We’ve paused (work) on Kwispaa for now and are evaluating.”

He said unlike larger energy companies, Steelhead does not have revenue to depend on to fund projects such as Kwispaa. “Steelhead is funded by investors.”

He said last week’s throne speech by the B.C. government had no bearing on Steelhead’s decision. “It comes down to the challenges that exist in getting funding for these kinds of activities.”

Steelhead had already completed preliminary engineering on Kwispaa and was to begin detailed design work in early 2019. The first phase of Kwispaa was estimated to be $10 billion, with the second phase costing an additional $10 billion. This would not have included a pipeline, which was a separate part of the LNG project.

Huu-ay-aht will evaluate what the decision will mean to their business plans in the coming days and said they will update their citizens with more information at the end of February.

“Huu-ay-aht remains committed to pursuing initiatives for meaningful economic reconciliation where we create opportunities to generate value in a global context and create employment and revenue opportunities locally,” Dennis Sr. and Peters wrote.

Skinner said Steelhead LNG has not completely pulled out of the deal, but there are no plans to continue forward at this time.

“At this point we’ve ceased work. That’s not to say it will never move forward but right now we’ve ceased working on (Kwispaa).”



susie.quinn@albernivalleynews.com

Like us on Facebook and follow us on Twitter

 

Steelhead LNG and Huu-ay-aht First Nations have submitted their plans for Kwispaa LNG project, which they hope to build in Sarita Bay on Vancouver Island’s west coast. FILE PHOTO

Just Posted

Port Alberni Fire Department to be featured on Discovery Channel

Second season of Hellfire Heroes premieres Oct. 22

Port Alberni’s newest street gets Nuu-chah-nulth name

Process prompts review of pre-approved names

EJ Dunn Elementary School celebrates playground

MLA Scott Fraser cuts official ribbon, climbs with kids at Port Alberni play space

Port Alberni students meet federal NDP leader Jagmeet Singh at rally

Singh posts trending video to TikTok, says reaching youth on their level is important

Second young woman dies after rollover crash near Williams Lake

‘Someone’s going to get her heart, which is awesome, because she has the best heart in the world’

Google searches for ‘how to vote’ surge on Election Day

Interest spikes despite social media campaign by Elections Canada

Union says Western Forest Products refuses to budge from ‘unreasonable concessions’

According to a press release, both parties met on Oct. 16, 18, 19, and 20.

Alberta man pleads guilty, fined for hunting without a licence in North Island

It’s the responsibility of each hunter or angler to know whether they are considered a B.C. Resident.

B.C. mayor apologizes for removal of Queen’s portrait from council chambers

‘I prefer to be inclusive of the many aspects of our history’

Alcohol a possible factor in crash that killed 17-year-old girl near Williams Lake

A pickup truck left the road and rolled over on Highway 20 on the weekend

Rare bird spotted in Victoria draws enthusiasts from across the continent

It’s the first time a yellow-browed warbler has been reported on the mainland of North America

B.C. woman must pay $1,000 after unleashed dog bites another

Owner should never have left Bibi unattended, tribunal member wrote

Most Read