KM LNG buy Eurocan mill site

KM LNG Operating General Partnership announced Thursday that it has entered into an agreement to purchase the former Eurocan pulp and paper mill site from West Fraser.

KM LNG Operating General Partnership announced Thursday that it has entered into an agreement to purchase the former Eurocan pulp and paper mill site from West Fraser.

“The Kitimat LNG partners are very pleased we have reached this agreement with West Fraser,” said KM LNG President Janine McArdle.

“The purchase of the site marks another significant local investment in Kitimat and is a great step forward for the Kitimat LNG project.”

McArdle said the site will provide the KM LNG project with a suitable area for a work camp and lay-down/storage area as the project continues to move forward with clearing and grading at the proposed LNG export plant site at Beese Cove.

The sale is subject to obtaining government approvals for the transfer of related permits and licenses. Financial details of the transaction have not been disclosed.

KM LNG is a partnership between Apache Canada (40 per cent), EOG Resources Canada (30 per cent) and Encana (30 per cent).

The partnership also proposes to build a new pipeline, called the Pacific Trail Pipeline, which will run from Summit Lake near Prince George to the Kitimat plant.

KM LNG is currently in marketing discussions with potential Asia-Pacific LNG customers and expects to have firm sales commitments in place by the time a final investment decision (FID) is made.

That is expected to come late this year.

What it also needs to make that decision is National Energy Board approval of its application for a 20-year natural gas export licence.

The NEB hearing into that application reconvened in Calgary last week and wrapped up late Thursday afternoon.

That session dealt with the remaining issues: “consideration of the potential environmental effects of the proposed exportation and any social effects that would be directly related to those environmental effects, including any such effects to aboriginal interests”, and “consultation with the public and aboriginal peoples.”

It also heard final arguments on all issues raised during both this latest session and the earlier one held in Kitimat in June.

Apache Canada spokesman Paul Wyke said, “We’re very pleased with how that process has gone and we anxiously await a decision from the NEB,” adding the company was “very confident” it had made its case for the licence.

There is, however, one outstanding issue attached to the application: reaching an agreement with the Gitxaala of Kitkatla sufficient to persuade the latter not to pursue its motion for a stay of proceedings until it had received “full and adequate responses” to information requests it had submitted to KM LNG.

Wyke said negotiations and consultations continued between the two parties were proving “very positive”.

Assuming everything comes together in time for an FID to be made late this year, KM LNG has indicated it expects to ship out the first LNG towards the end of 2015.


Just Posted

Kitimat’s Water Quality Advisory, which has been in place for just over a week, has been lifted. (Black Press file photo)
Water Quality Advisory in Kitimat lifted

The district has been under a Water Quality Advisory since June 2

On June 16 at 6 p.m., the Kitimat Chamber of Commerce will be hosting a public presentation and discussion with Happipad, a social enterprise, to talk about solutions for affordable housing Kitimat. (Happipad photo)
Affordable housing to be focus of Kitimat Chamber of Commerce meeting

Figures indicate the average Kitimat household needs to make more than $92,000 a year

(District of Kitimat logo)
Hirsch Creek Bridge restricted to single lane traffic

The district is restricting the bridge traffic to legal highway loads only

Artist’s illustration of the proposed Kitimat LNG facility at Bish Cove near Kitimat. (Kitimat LNG illustration)
Haisla Nation surprised by Woodside pull out from Kitimat LNG project

Haisla Nation council states its main focus is now on developing the Haisla-led Cedar LNG project

(Northern Health logo)
Pop-up vaccine clinic tomorrow at the Save-on-Foods parking lot in Kitimat

The clinic will be this Friday, June 11 from 6:00 p.m. to 8:00 p.m.

Canadian Prime Minister Justin Trudeau participates in a plenary session at the G7 Summit in Carbis Bay, England on Friday June 11, 2021. THE CANADIAN PRESS/Adrian Wyld
Canada donating 13M surplus COVID-19 vaccine doses to poor countries

Trudeau says the government will pay for 87 million shots to be distributed to poor countries

Premier John Horgan speaks as provincial health officer Dr. Bonnie Henry, right, and health minister Adrian Dix look on during a press conference to update on the province’s fall pandemic preparedness plan during a press conference from the press theatre at Legislature in Victoria, Wednesday, Sept. 9, 2020. THE CANADIAN PRESS/Chad Hipolito
B.C. officials to provide details on Step 2 of COVID reopening plan Monday

Step 2 could allow for larger gatherings and a resumption of recreational travel

Indigenous Services Minister Marc Miller is seen during a news conference, Wednesday May 19, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Indigenous child-welfare battle heads to court despite calls for Ottawa to drop cases

Feds are poised to argue against two Canadian Human Rights Tribunal rulings

The Great Ogopogo Bathtub Race has been held in Summerland as a fundraising event. Do you know which Canadian city introduced this sport? (Black Press file photo)
QUIZ: A summer’s day at the water

How much do you know about boats, lakes and water?

Two-year-old Ivy McLeod laughs while playing with Lucky the puppy outside their Chilliwack home on Thursday, June 10, 2021. (Jenna Hauck/ Chilliwack Progress)
VIDEO: B.C. family finds ‘perfect’ puppy with limb difference for 2-year-old Ivy

Ivy has special bond with Lucky the puppy who was also born with limb difference

A million-dollar ticket was sold to an individual in Vernon from the Lotto Max draw Friday, June 11, 2021. (Photo courtesy of BCLC)
Lottery ticket worth $1 million sold in Vernon

One lucky individual holds one of 20 tickets worth $1 million from Friday’s Lotto Max draw

“65 years, I’ve carried the stories in my mind and live it every day,” says Jack Kruger. (Athena Bonneau)
‘Maybe this time they will listen’: Survivor shares stories from B.C. residential school

Jack Kruger, living in Syilx territory, wasn’t surprised by news of 215 children’s remains found on the grounds of the former Kamloops Indian Residential School

A logging truck carries its load down the Elaho Valley near in Squamish, B.C. in this file photo. THE CANADIAN PRESS/Chuck Stoody
Squamish Nation calls for old-growth logging moratorium in its territory

The nation says 44% of old-growth forests in its 6,900-square kilometre territory are protected while the rest remain at risk

Most Read