Gitxaala to share in LNG benefits after agreements reached with B.C.

Press Release

Gitxaala First Nation and its members will share directly in the benefits of liquefied natural gas (LNG) development on B.C.’s north coast after signing two agreements with the Province.

“LNG Canada is a promising economic opportunity for Kitimat, Gitxaala and our entire province,” said Scott Fraser, Minister of Indigenous Relations and Reconciliation. “Gitxaala has partnered to deliver real, tangible benefits on their communities’ priorities.”

The Coastal Fund Agreement and the LNG Benefits Agreement provide comprehensive and sustainable funding to Gitxaala for the life of the LNG Canada project. The agreements ensure Gitxaala members benefit from jobs, business opportunities and the increased revenue and growth that this project will bring.

“These are truly legacy partnership agreements for our children’s children who are yet to be born. A lot of hard work and effort has taken place by our members and the hereditary table to ensure community well-being,” Said Gitxaala Chief Cliff White. “The agreements demonstrate how Gitxaala and the Province can partner together to ensure a brighter future. We appreciate the efforts of government officials who have worked closely with Gitxaala to build these important legacies.”

The LNG Benefits Agreement provides initial funding to assist Gitxaala Nation in preparing for and managing LNG development. A total of $57 million over four years will be used to grow capacity, improve ferry service, develop community infrastructure and create a legacy fund.

The Coastal Fund Agreement will provide an annual base payment plus incremental project funding that reflects the volume of LNG that is being produced. The total annual payment is anticipated to be in the range of $600,000 to $800,000, though this will vary depending on the volume of LNG that is shipped.

“The Gitxaala Nation is building a stronger future as a result of LNG Canada moving forward,” said Michelle Mungall, Minister of Energy, Mines and Petroleum Resources. “By working together with the Gitxaala Nation, communities and future generations are benefiting directly from LNG.”

With LNG, the Province is making sure real benefits reach people throughout the province while protecting the natural environment and partnering with First Nations.

Quick Facts:

Gitxaala has approximately 2,000 members and is located south of Prince Rupert.
The Province supports LNG development, with four conditions:
- LNG projects must offer jobs and training for British Columbians, especially jobs for local people.
- British Columbians must get a fair return for B.C. natural resources.
- LNG projects must secure full partnerships with local First Nations.
- LNG projects must complete a made-in-B.C. environmental assessment and achieve the greenhouse gas targets contained in CleanBC.
On March 25, 2019, the Province introduced legislation to deliver the fiscal setting needed for LNG Canada’s $40-billion project in Kitimat.
LNG Canada announced its final investment decision on Oct. 1, 2018.
Economic benefits of the LNG Canada final investment decision include:
- $24 billion of direct private-sector investments in B.C.;
- $23 billion in new government revenues over the life of the project, creating new resources for health care, schools, child care and services for British Columbians; and
- significant funding for First Nations capacity building, training and education, contracting and employment, and community contributions.
LNG Canada is a joint venture company comprised of:
- Shell Canada Energy (40%), an affiliate of Royal Dutch Shell plc;
- Petronas, through North Montney LNG Limited Partnership (25%);
- Affiliates of PetroChina (15%);
- Korea Gas Corporation (Kogas) (5%); and
- Mitsubishi Corporation (15%).