Rio Tinto Alcan's port facilities at Kitimat. Rio Tinto and LNG Canada have entered an agreement for wharf space for the proposed LNG Canada export terminal.

Rio Tinto, LNG Canada enter into wharf and land agreement in Kitimat

An agreement will see LNG Canada have options to acquire or lease a wharf and land from Rio Tinto.

Rio Tinto Alcan has made an agreement with LNG Canada — an LNG export proposal headed by proponent Shell Canada — to acquire or lease a wharf and associated land at RTA’s Kitimat property.

The agreement, according to an Rio Tinto press release, gives LNG Canada a series of options, payable against the project’s milestones.

The financial details of the agreement are confidential, the company says.

Colleen Nyce, Manager, Corporate Affairs & Community Relations for Rio Tinto Alcan in Kitimat, said that the wharf in question refers to their Terminal B, the former Eurocan Pulp and Paper terminal.

LNG Canada told the Sentinel this afternoon that this agreement simply formalizes the relationship with Rio Tinto Alcan, and says the options give them flexibility to the needs of the LNG Canada project, but still would not release what the options specifically are.

Amy Calitz, vice president of LNG Canada, said that they believe LNG Canada “represents the best opportunity to bring the liquefied natural gas industry and its benefits to the people and communities of British Columbia.”

As for this agreement, Rio Tinto Chief Executive Sam Walsh said this deal shows how they can “generate meaningful value from our existing assets by selling options on port facilities to LNG Canada.”

“This innovative approach will provide an expanded gateway for Canadian resources to worldwide markets which has the potential to benefit the communities and economics of British Columbia,” he added in the news release.

As for the LNG Canada project from here, the company said they are still on track to make a final investment decision at some point in the middle of the decade, which would start off four to five years of construction.

They say environmental studies and community consultation is among their key priorities this year.

The company requires still an environmental assessment certificate, a B.C. Oil and Gas Commission LNG Facility permit, and a Transport Canada TERMPOL review (which is a review of marine terminal systems).

An export licence has already been granted to the company.

The company is also looking at selecting an Engineering Procurement Construction Management contract later this year.

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