Pacific Traverse Energy (PTE) is so far declining to reveal plans it has for the area now that it’s sold half of the planned small-scale Cedar LNG project to Pembina Pipeline Corporation, an Alberta company.
The company first appeared in Kitimat in 2018 with a proposal to build a facility to process propane brought in by rail and export it in a liquefied state.
It did begin to develop plans for the facility but then struck a deal with the Haisla Nation for each to have a 50 per cent share of the Cedar LNG, a $4 billion proposal to moor a floating liquefied natural gas plant on Haisla-owned land near Bish Cove.
And in a briefing on the Cedar LNG project provided to Terrace city council, PTE vice president John Turner said it was going to concentrate on that project and put its own liquified petroleum gas project (LPG) on hold because of market conditions.
But just days later, PTE and its partner, Delfin Midstream, announced the sale of its stake to Pembina.
PTE spokesperson, Jon Turner, told The Northern Sentinel it will still focus the preliminary designs and regulatory processes, like environmental assessments, for Cedar LNG while Pembina will be responsible for pre-construction, construction and operation of the facility.
“We are pleased to hear that Pembina has become a partner with the Haisla Nation on the Cedar LNG project. From what we understand, this new partnership will provide additional expertise, resources, and capacity to help advance the project. At the same time, we commend Pacific Traverse Energy for all they have done to support the Haisla Nation and the Cedar LNG project up to this point,” Mayor Phil Germuth stated when asked about his thoughts towards PTE’s commitment to the Cedar the LNG project.
But as for PTE’s own project, though Turner stated, in 2019, that PTE had all the money they needed for the estimated $400 million LPG project and weren’t looking for investors, now, PTE says due to economic changes over the last year, they will be putting the project on the backburner to assist with the Cedar LNG project.
However, Turner said that PTE is still committed to the LPG project but is just unaware of when the project will be back in full swing.
“We are also very pleased that PTE remains committed to the long-term development of their LPG project in Kitimat,” Mayor Germuth stated when asked about his thoughts towards PTE and their commitment to the LPG project.
As conceived by PTE, The LPG project was supposed to be a project that would ship propane by rail from northeastern B.C. to a yard just north of Kitimat where it would be transferred to a pipeline and pumped to an offshore facility. The railyard, which would be located three kilometres from the northern end of the Service Centre, was planned to be used to park special railcars carrying propane from northeastern B.C. and Alberta on CN tracks to the rail terminus in Kitimat for offloading.
Cedar LNG planners forecast a workforce of approximately 500 people during peak construction and 100 or more operations jobs. Major construction activities will include a pipeline bringing in natural gas from LNG Canada’s Coastal GasLink pipeline, a powerline, and the civil works that are required to prepare the marine terminal site to receive the floating LNG facility.
During the construction phase, Cedar LNG will use Sitka Lodge and Crossroads Lodge for its out-of-town workforce accommodations.
“It’s been a privilege to work with the Haisla Nation over the last few years on this historic project,” Zachary Steele, CEO, Pacific Traverse Energy and outgoing CEO, Cedar LNG Project stated to The Northern Sentinel.
“Our approach has always been to design a project that fits into the local community and environment. We are proud to have partnered with the Haisla Nation to help advance a project that is consistent with their values of social and environmental accountability while creating long-term prosperity for the Nation and the region.”