LNG deal signed

Photo: The Canadian Press

An agreement-in-principle has been signed with Pacific Northwest LNG for a $36-billion liquefied natural gas project near Prince Rupert.

Premier Christy Clark announced the agreement in a conference call from Vancouver.

The project is not yet finalized, and will be subject to internal approval by Pacific Northwest and its parent company, Petronas, as well as full approval by the B.C. legislature.

“It will not come into effect until the legislation is approved,” Clark said in the announcement. “I'm sure there will be no stone left unturned once the debate is completed.”

The development of the LNG industry is a campaign promise Clark ran on in the 2011 provincial election. The environmental impacts of such development have made it a controversial idea.

If approved, the project would be the largest capital investment in B.C.'s history, generating an estimated $7.7 billion in revenue to the province over 23 years.

During the announcement, Clark stressed the importance of First Nations co-operation.

“We want to make sure that (First Nations) share in the opportunities and the benefits from LNG,” she said.

Despite this commitment, the Lax Kw'alaams First Nation recently overwhelmingly voted to reject a $1-billion offer over 40 years from Pacific Northwest for supporting a natural gas terminal on their lands, citing environmental concerns.

The deal comes a day after Clark announced that B.C. has joined an international project to limit increases in global temperature to two degrees Celsius by 2100. As part of the project Under 2 MOU, B.C. will work in collaboration with California, Oregon, Washington and Ontario to decrease greenhouse gas emissions and increase renewable energy.