Steelhead LNG and Huu-Ay-Aht First Nations Sign Opportunity Development
Agreement for LNG Project on Huu-Ay-Aht First Nations Land at Sarita Bay
NEWS RELEASE TRANSMITTED BY Marketwired
FOR: Steelhead LNG Corp.
and Huu-ay-aht First Nations
JULY 8, 2014
Steelhead LNG and Huu-Ay-Aht First Nations Sign Opportunity Development
Agreement for LNG Project on Huu-Ay-Aht First Nations Land at Sarita Bay
VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 8, 2014) - Steelhead LNG Corp.
and the Huu-ay-aht First Nations (HFN) today announced they have signed an
Opportunity Development Agreement that will see them work together to explore
developing a liquefied natural gas (LNG) project on HFN-owned land at Sarita
Bay, approximately 10 kms north of Anacla at the southern end of Alberni Inlet
on Vancouver Island.
The project, which would include a land-based liquefaction facility, could
ultimately represent an investment of US$30 billion and create hundreds of
direct jobs from design through construction, and hundreds of additional
full-time operational jobs should the project go ahead. If the project goes
ahead, the facility would run for at least 25 years.
On July 8, Steelhead LNG applied to the National Energy Board for a license to
export up to 30.0 million tonnes of LNG per year for 25 years. The development
of the Sarita Bay site would be split into four 6 mtpa (million tonnes per
annum) LNG production trains, which is reflected in the application. Steelhead
LNG is currently working with pipeline companies to explore infrastructure
options to deliver the gas from northern British Columbia to western Vancouver
Island, and options for an additional 6.0 mtpa LNG export facility along a
Steelhead and HFN were introduced by the Port Alberni Port Authority (PAPA),
which developed strong relationships with both parties as part of its mandate
to foster economic development in the region. In 2013 the Port Alberni Port
Authority entered into a Protocol Agreement with HFN to collaborate towards
achieving initiatives such as this proposed project.
The project, which is being overseen by a joint Steelhead LNG/ Huu-ay-aht First
Nations Project Development Panel (PDP), represents a unique approach and an
increased level of First Nations input and direction in an LNG project. The
project will be subject to several comprehensive regulatory, environmental and
technical assessments and will only proceed after extensive consultation with
Huu-ay-aht citizens, including a vote on a possible land lease to the project
at the Huu-ay-aht First Nations People's Assembly in November, 2014. PAPA
would continue to be involved with the port development, marine and shipping
related aspects of the project.
In order to collect ongoing input and feedback from Huu-ay-aht First Nations
citizens, as well as from other stakeholders, the PDP will put in place a
number of community engagement initiatives including a community office in the
Bamfield/Anacla and Port Alberni areas, a project website, Community Rounds
(meetings) for HFN citizens, community meetings, and regular project updates.
These consultations will begin before, and continue after, the 2014 HFN
"We look forward to working closely with Huu-ay-aht First Nations to
explore LNG opportunities," said Nigel Kuzemko, CEO, Steelhead LNG.
"While the site is a significant distance from upstream gas production, it
does offer numerous advantages, including direct access to the Pacific Ocean.
This agreement at the earliest stage of the project reflects our commitment to
the Huu-ay-aht First Nations and our respect for their principles of iisaak
(greater respect), hishuk tsa-walk (everything is connected) and uu-a-thluk
(taking care of). We were also very impressed by the level of collaboration
between Huu-ay-aht First Nations and the Port Alberni Port Authority. We see
this kind of collaboration as an enabler for projects of this magnitude.
"It's important to note that this agreement represents only the first
step in our journey together. We recognize that between now and the time the
first shipment of LNG might leave our proposed facility, thousands of decisions
will have to be made and we have to get every one of them right, or that
shipment doesn't leave. In addition, the decisions we make together will
be measured against our joint responsibility to ensure the lands on which we
hope to operate are safeguarded for generations to come."
For Huu-ay-aht First Nations Chief Councillor Jeff Cook, the Opportunity
Development Agreement is a reflection of HFN Executive Council's long term
economic development strategy that provides sustainable wealth for the
Huu-ay-aht people, while respecting their value of conservation.
"We look forward to working with Steelhead LNG to explore economic
development opportunities for our people," said Cook. "LNG represents
a unique opportunity for our citizens, our region and the province, and this
agreement will provide us with an opportunity to see how potential LNG projects
might fit with the priorities and initiatives identified in our strategic
The Huu-ay-aht First Nations is a 750-citizen, self-governing nation based in
Barkley Sound, on the southwestern coast of Vancouver Island. Fifteen per cent
of its citizens live in the community of Anacla (near Bamfield), with the
remaining citizens living in Port Alberni, greater Vancouver, northwest
Washington State and elsewhere. HFN is part of the Nuu-chah-nulth Tribal Group
and is a signatory to the Maa-nulth First Nations Final Agreement that came
into effect on April 1, 2011.
In late 2013, following extensive consultation with community citizens, the
Nation unveiled its 2014-2017 Strategic Plan, which identified short and long
term goals related to children and families, culture and values, infrastructure
and natural resources and trade. In November 2013, Huu-ay-aht Councillor John
Alan Jack joined a PAPA delegation with Premier Christy Clark and BC business
leaders on a trade mission to China to promote economic development
opportunities in the Alberni area.
As part of the Opportunity Development Agreement, Steelhead LNG will provide
HFN with capacity funding so the Nation can secure the technical, environmental
and negotiating expertise it needs to protect its land and its interests.
Steelhead LNG and Huu-ay-aht First Nations will also work together on a social
benefit and community engagement program that includes, among other things:
-- archaeological, environmental, structural and technical engineering work
to support the preservation and protection of the Kiix?in National
-- development of a bike and walking path along the heavily used road
between Anacla and Bamfield, which is currently only one and a half
-- a socio-economic analysis of the conditions, needs, and capacities of
Anacla, Bamfield and Port Alberni, and the broad impact of any LNG
project on those communities.
Additional possible components of the program include:
-- a salmonoid enhancement program
-- trades and other education for HFN citizens
"Today's announcement showcases our unique approach to developing LNG
projects," said Kuzemko. "By operating as a flexible and focused
BC-based company that isn't constrained by commitments to worldwide
projects, or non-LNG energy sectors, we hope to create a project and
partnerships that for many years to come will generate opportunities for the
Huu-ay-aht people as well as BC-based businesses providing engineering,
construction, accommodation, marine, transportation and other LNG
"We also believe that Canada has the entrepreneurial, educational and
natural resources to become a world leader in the responsible development of
LNG. To that end, we are committed to helping develop Canada's financial,
organizational and technical capacity to achieve that goal and ensure the
benefits of LNG extend to all Canadians."
For more information about Steelhead LNG, visit www.SteelheadLNG.com.
For more information about Huu-ay-aht First Nations, visit www.huuayaht.org.
BACKGROUNDER: HUU-AY-AHT FIRST NATIONS
The Huu-ay-aht First Nations (HFN) is a self-governing, modern treaty Nation
whose lands are located in the Barclay Sound region on the west coast of
Vancouver Island at the entrance to the Port Alberni inlet. The lands and
waters making up the traditional territories (Ha-houlthee) of the Huu-ay-aht
have been occupied by them since time immemorial. Today, Huu-ay-aht citizens
number close to 750 and primarily reside around the village of Anacla, the
Nation's principal community close to Bamfield, as well as Port Alberni,
the closest population center. The balance of citizens live across Vancouver
Island, in the Vancouver area, and beyond.
Huu-ay-aht First Nations is a member of the Nuu-chah-nulth Tribal Council and
one of the five First Nations signatories to the Maa-nulth Final Agreement, the
first modern-day treaty to be concluded on Vancouver Island. The treaty came
into effect on April 1st, 2011, when the five Maa-nulth First Nations'
laws came into effect, marking a new era of ownership and self-government.
Today, HFN operates under a "made in Huu-ay-aht" Constitution, which
supports the laws and policies that establish how the Huu-ay-aht government
makes decisions on behalf of its citizens. As a result of the Treaty, the
Huu-ay-aht First Nations has full ownership and jurisdiction over more than
8,200 hectares of land within their territories and continue to have rights
throughout their Ha-houlthee (traditional territories).
With full control over these undisputed lands owned in fee simple, the Nation
is able to govern the lands under their own laws. Seeking to leverage this
strength, HFN Council and Hereditary Chiefs (Ha'wiih) have been actively
seeking opportunities to engage in responsible and sustainable economic
development in order to forward the HFN vision of working together to establish
a healthy, prosperous, and self-sustaining community. Maintaining their
historic role as caretakers of the lands, waters, and resources of their
Ha-houlthee, the Huu-ay-aht Ha'wiih work closely with Elected Council to
ensure that all development considerations are informed and guided by the
long-held principles of iisaak (respect), uu-a-thluk (taking care of), and
hishuk tsa'wak (everything is connected). Furthermore, Huu-ay-aht citizens
themselves contribute to the governance of their Nation through regular
People's Assemblies, which employ a "direct democracy" model.
Building on a rich history, Huu-ay-aht First Nations is working to build a
bright future for generations to come. To learn more about Huu-ay-aht First
Nations governance, culture, as well as upcoming projects and initiatives,
please visit our website at www.huuayaht.org.
BACKGROUNDER: STEELHEAD LNG
Steelhead LNG is a Vancouver-based liquefied natural gas project development
company, whose principals have created and led some of the world's
largest, most successful and environmentally responsible natural gas and LNG
Nigel Kuzemko, CEO
Nigel Kuzemko's experience in the energy sector began as a geophysicist
working on upstream exploration and production in the North Sea in 1986. His 22
years of senior executive experience in the energy sector includes extensive
work on commercial arrangements in the natural gas industry for everything from
upstream exploration through the value chain to retail energy, and gas and
power trading. In South America, Australia, Asia and across Europe, Kuzemko has
played a key role in developing and growing the LNG divisions of global energy
companies such as Shell, Santos, Qatargas and Gazprom. His experience includes
negotiating numerous multi-billion dollar energy agreements, conceptualizing
Gladstone LNG (Australia), governmental agreements, joint ventures, LNG sales
agreements, as well as operating agreements and price reviews.
Ian Hill, Vice President, Technical
Ian Hill has more than 40 years' experience in the oil and gas industry,
including 37 with the Royal Dutch Shell Group of companies. Over his
distinguished career, his technical development, engineering management and
project leadership roles have covered the full project development cycle,
including identification, feasibility and concept selection, integration of
subsurface and surface disciplines, FEED (front end engineering design),
EPC&C (engineering, procurement, construction and commissioning) and
engagement with national ministerial or regulatory bodies. His experience spans
offshore and onshore oil and gas exploration and production, and the gas
midstream sector, primarily LNG. Among his many industry achievements is
leading the development of Shell's original floating LNG concept.
Blaine Mersereau, Vice President, Commercial
On the upstream and commercial side, Steelhead LNG has nearly thirty
years' experience in the gas, power, oil, NGLs and LNG sectors across
North America through Blaine Mersereau, (VP, Commercial). Commercially skilled
and technically trained in geology, Mersereau has worked for corporations such
as Shell Canada Energy (LNG Canada), EnCana, Anadarko Canada, Florida Power
& Light, Lectrix Canada, Berkley Petroleum and TransAlta Energy. His
extensive corporate, regulatory and technical expertise includes successfully
managing grass roots business opportunities from inception through to
commercial operations, establishing governance and risk management systems with
new venture start-ups, and brokering deals. His industry achievements include
developing the business plan for North America's first electronic trading
system for natural gas (Energy Exchange Inc.), founding North America's
first international, merchant power transmission line (Montana Alberta
Transmission Line), and established energy trading departments for several
multi-national energy marketing companies.
Ryan Patryluk, Vice President, Corporate Affairs
Overseeing Steelhead LNG's financial structuring and negotiations is Ryan
Patryluk, a former partner of a national law firm and a founding partner at MEP
Business Counsel. Patryluk is a proven leader in structuring domestic and
international projects with a diverse legal and commercial background. As a
lawyer qualified in Canada, England and Wales and New York, Patryluk has
represented some of the world's largest institutional and investment banks
and asset managers, and has led negotiations to establish international joint
ventures and other business relationships in Canada and abroad. In legal and
business roles with major international firms in Canada, the United States and
Europe, Patryluk has focused on strategic business mandates, infrastructure and
energy projects, mergers/acquisitions and major debt and equity financings.
Steelhead LNG's investors include KERN Partners, a Calgary-based energy
sector private equity firm, which is funded by a group of leading Canadian
pension funds, North American university endowments, foundations, institutions
and family offices. KERN's team has significant experience in the upstream
oil and gas, energy infrastructure, energy technology and oil and gas service
sectors and has more than $2.3 billion under management.
For more information, visit:
Steelhead LNG Greg Descantes
650-669 Howe Street Media Relations
Vancouver, BC V6C 0B4 Steelhead LNG
Phone: 604-235-3800 604-646-3559
FOR FURTHER INFORMATION PLEASE CONTACT:
Huu-ay-aht First Nations
250-723-0100 ext. 243
INDUSTRY: Energy and Utilities - Oil and Gas , Government - Local
-0- Jul/08/2014 17:00 GMT
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