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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

 

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

Award-winning documentary shares the modern story of Huu-ay-aht First Nations

Broadcast premiere of documentary will take place in Port Alberni on Jan. 29

Australian investigators head to C-130 plane crash site

B.C. gov’t makes statement, sends condolences to Coulson Aviation

UPDATED: Tofino-Ucluelet highway will be open for “essential travel only” on Friday

Vehicles will be screened at the Tofino/Ucluelet junction and at Sproat Lake.

Veteran Island journalist battles cancer through pioneering treatment

Vancouver Island rallies around JR Rardon and family during stay in Seattle

Coulson Aviation C-130 crashes in Australia, killing three on board

Three people are confirmed dead in the crash in New South Wales

Fashion Fridays: The basics you need for your body type

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Was Bigfoot just spotted on a Washington State webcam?

Sherman Pass is rougly 70 kilometres south of Grand Forks, B.C.

B.C. employer health tax wins ‘paperweight award’ for red tape

Businesses forced to estimate payroll, pay new tax quarterly

VIDEO: Dashcam records near-miss by bad driver near Sooke

Driver crossed four lanes of traffic and back over again, barely missing three other vehicles

New U.S. LNG terminal near northwestern B.C. town proposed

AlaskCAN International LNG wants terminal just over Canadian border, but using B.C gas

Couple wonders who’s in a Cariboo photo that’s been hanging in their home for years

Charles and Lynn Dick believe the image was taken at the 70 Mile Road House

Here’s what Canada is doing to stop the coronavirus from getting in

Health officials are monitoring multiple possible cases in Canada

‘I would not go’ to China says B.C. traveller concerned about coronavirus

Alice Li said she goes to China every other year but would scrap any travel plans

Royal Canadian Legion expels B.C. member for wearing unearned military commendations

‘Stolen valour is stolen service and it’s just totally wrong’

Most Read