Background on Woodfibre LNG and Pacific Energy Corp.
Woodfibre LNG, a Vancouver-based private subsidiary of Singapore’s Pacific Energy Corp., is gearing up for another construction start. Pacific Energy Corp. is part of the Singapore-based RGE group of companies owned by billionaire Sukanto Tanoto. The company has announced that it has an approved budget this year of $625 million.
Project Details and Controversy
The proposed project, which has been in development since 2014, involves building a liquid natural gas facility in the Squamish area. However, the project faces opposition from some area residents due to environmental concerns and potential impacts on local communities. Despite this, the province has given environmental assessment approval for the project.
$625 Million Budget Breakdown
According to recent presentations made to the District of Squamish council, $25 million has been earmarked for pre-construction work at the former pulp mill site near Squamish. This includes removal of concrete slabs and a rail line. A significant component of the remainder of the budget will be used for benefits agreements with local First Nations communities.
Benefits Agreement with Tsleil-Waututh First Nation
Woodfibre LNG is working on a benefits agreement with the Tsleil-Waututh First Nation, which is expected to provide economic benefits to the community. The company has stated that it is committed to supporting local economies and creating jobs for residents in the area.
My Sea to Sky Advocacy Group Opposition
The My Sea to Sky advocacy group, which opposes the project, hand-delivered a petition to the Woodfibre LNG staff in Squamish signed by over 20,400 people calling for a stop to the LNG project and pipeline. The group is opposed to the project due to concerns that it will increase fracking to extract natural gas, lock in climate pollution, and put residents at risk along the proposed pipeline route.
Comparison with Other LNG Projects
The Woodfibre LNG project has seen several major announcements over the years, including one made in 2016 with then-B.C. Liberal premier Christy Clark that made it seem the project was set to start construction soon. However, only one other project is currently under construction, the Shell-led $18-billion LNG Canada project in Kitimat.
Conclusion
While Woodfibre LNG has announced a significant budget for this year and stated that a final investment decision is imminent, the project remains contentious due to environmental concerns and opposition from local communities. As with any large-scale industrial project, it’s essential to weigh the benefits against the potential risks and impacts on the environment.
Recommendations
- The B.C. government should continue to work with Woodfibre LNG to address the concerns of local First Nations communities.
- Environmental assessments and monitoring should be conducted to ensure that the project does not have significant negative impacts on the environment or local ecosystems.
- The company should engage in open and transparent communication with stakeholders, including local residents and businesses.
By following these recommendations, it’s possible to mitigate some of the risks associated with the project while also ensuring that the benefits are realized for all parties involved.