Vancouver-based Steelhead LNG Corp. and the Huu-ay-aht First Nations (HFN) have signed an opportunity development agreement that will see them work together to explore developing an LNG project on HFN-owned land at Sarita Bay, about 6 miles north of Anacla at the southern end of Alberni Inlet on Vancouver Island, British Columbia.

The project, which would include a land-based liquefaction facility, could ultimately represent an investment of $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 Canada’s National Energy Board for a license to export up to 30.0 million tonnes per annum of LNG for 25 years. The development of the Sarita Bay site would be split into four 6 mtpa 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 pipeline route.

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 People's Assembly.

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 percent 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.

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.