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At the heart of Canada’s rush towards liquified natural gas, Kitimat, B.C., is poised to boom | CBC News

It’s been more than a decade since the global oil and gas industry began its plan to send millions of tonnes of natural gas across the Rocky Mountains, to British Columbia’s western coast and on to Asia.

Now, despite fierce opposition from some environmental experts and First Nations people along its 670-kilometre route, the controversial Coastal GasLink pipeline is almost complete.

But the project’s uncertain economic and environmental impacts are already beginning to materialize in coastal Kitimat, B.C., the northern port community that will soon host the project’s central terminal.

Less than 15 kilometres away sits Kitamaat Village, home of the Haisla First Nation. Hereditary Chief Sammy Robinson’s garage door is open onto the Douglas Channel as he sits inside, carving the trunk of a cedar tree into a totem pole.

The Elder, who will soon celebrate his 89th birthday, was a teen when it all began.

The Haisla have lived in Kitamaat for thousands of years, stewarding the land. “I didn’t see a white man until I was 15 years old, I didn’t see a plane until I was 15 years old,” said Robinson.

Elder Sammy Robinson, nearly 89, of the Haisla Nation has had a front row seat to Kitimat’s transformation since he was a boy. (Benoît Ferradini/Radio Canada)

But that changed in the early 1950s, as company men from aluminum manufacturer Alcan began to arrive in the region, scoping it out to build a factory and then a port that could bring their products from the end of the fjord to the world.

The factory, and the jobs that building and running it required, established Kitimat as a commercial hub. Soon, more companies came.

Signs of renewed prosperity

In the decades since Alcan arrived, Kitimat’s population has fluctuated with the booms and busts of the natural resources industry. In 2010, the community was devastated when the closure of West Fraser Timber’s Eurocan pulp and paper mill caused 500 people’s jobs to disappear.

Now in his thirties, Kitimat-born Nick Markowsky can still remember those grim years.

But a promised gust of prosperity from the Coastal GasLink project is now blowing into the town, one that gave Markowsky and business partner Brandon Highton confidence to start a new venture.

“Growing up, we saw a lot of the industries leave town and shut their doors, which definitely had an impact on the community that was thriving and made it a bit stale for a while,” said Markowsky from his beer brewery’s taproom, noting that recent projects have changed that.

“I would have never thought that we would be back here.”

Two Peaks Brewing opened in Kitimat in April 2023, and its owners say the LNG Canada factory gave them the confidence to go into business. (Benoît Ferradini/Radio Canada)

Their ultramodern micro-brewery, Two Peaks Brewing, opened in the centre of town just two months ago.

He feels they’re one of many businesses already riding a wave of liquified natural gas. 

Since 2012, the conglomerate TC Energy has been building the Coastal GasLink pipeline from Dawson Creek, Alberta to a mammoth terminal now under construction in Kitimat.

The controversial project, supported by the elected governments of all the First Nations along its route — but opposed by many community members and environmental groups — is scheduled to be completed later this year.

The Lng Canada plant, which opened its doors to media for the first time to Radio-Canada, spans more than 400 hectares. Corporations including Shell, Petronas, Petrochina and Mitsubishi, as well as the Korea Gas Corp., have invested more than $17 million into the project.

The project will liquify natural gas at nearly –162 C before sending it on to Asia aboard cargo ships that will soon swarm the Kitimat port. If all goes to plan, 14 million tonnes of gas will be transported in the first year of operation, and 28 million the next, so long as the proposed second phase of construction is approved by investors.

More than 300 jobs will be created to run the factory when it becomes operational in 2025, including Ron Murdoch and his daughters, Hayley and Hannah.

The mammoth LNG Canada Factory looms in Kitimat, pictured on June 14, 2023. (Benoît Ferradini/Radio Canada)

Born in Kitimat, Murdoch returned after an engineering career abroad, this time employed by LNG Canada in his hometown. So too are his daughters, who recently graduated as engineers themselves.

But after witnessing stores shuttered and ski hills empty after factories closed in his younger years, Murdoch never expected to make the return.

Seeing the investment and “all these these stores coming back and huge opportunities… it’s unique,” said Murdoch, noting he loves seeing his daughters have the chance to build a similar career.

“We all love Kitimat. They know what it has to offer. This is their home.”

A giant of the local economy

in Kitimat, a new fire station, health clinic and youth centre sit alongside apartments whose rents have skyrocketed, evidence that LNG is already transforming the region.

No less than 70 per cent of Kitimat’s municipal revenues come from the industry, and largely LNG Canada.

The factory’s construction has employed more than 7,000 people since it began, housing them in work camps in and around Kitimat. Cedar Valley Lodge, which includes restaurants, fitness centres and even a rock climbing wall, can hold as many as 4,500 employees.

Near Kitimat, the Coastal GasLink project is under construction, set be completed later in 2023. (Benoît Ferradini/Radio Canada)

Despite building the largest private infrastructure project in Canada’s history, LNG Canada has largely mitigated the negative impacts on the municipality, according to Kitimat’s mayor, Phil Germuth.

“They’ve been an amazing company to work with, I must say. You also look at what they’ve done for the economy, of course, for the jobs,” said Germuth. “If something starts to go wrong, we know we can pick up the phone and together we’ll figure it out.”

Partnership at the centre

Among the most important changes in Kitimat is the collaboration with the Haisla First Nation, upon whose traditional, ancestral and unceded lands the factory and camps have been built. The Nation, though, has been part of the project since the start.

Former Chief Ellis Ross, who now represents the region in B.C.’s legislature, says he opposed the project at first.

Some leaders of the Haisla Nation see LNG Canada as an opportunity to strengthen their community. (Benoît Ferradini/Radio Canada)

But with a Nation still living the economic, social and cultural devastation of ongoing colonization, Ross saw an opportunity for the project to change things, if the community got on board.

“I started to understand that it was actually a solution to most of the problems we were facing, meaning poverty, unemployment, suicide and imprisonment,” said Ross.

LNG Canada had proposed a participation agreement with the Haisla, sharing profits from the project and guaranteeing well-paying jobs for community members. And it succeeded in convincing the First Nation that its project was less environmentally damaging than other proposals.

“The tipping point in regards to the support for LNG was the fact that … if anything were to ever happen, LNG would evaporate into the air,” said Haisla councilor Crystal Smith.

Since her election, the young Haisla leader has participated in all discussions concerning liquified natural gas in the region, working with her counterpart at LNG Canada, Hope Regimbald.

“Before we ever even started to build this incredible project, we talked to the community first and then we built those voices into the direction,” said Regimbald, head of Indigenous relations for LNG Canada and a member of the Woodland Cree First Nation in Alberta.

“Where the impact is greatest, the potential for benefits and lifting and enabling Indigenous people is where I always want to go.”

The company also says it will work toward making the plant carbon-neutral, as the provincial government has encouraged.

However, that has not quelled concerns from environmentalists about the project’s impact on carbon emissions, which contribute to climate change, nor about what they say are threats to waterways and riverbeds along its route.

A 34,000-ton heavy lift vessel carrying barges for LNG Canada is completing pre-construction work in Kitimat harbour, to prepare the existing port for larger vessels once the new $40-billion natural gas export facility is constructed. (YouTube/LNG Canada)

Too soon to tell full impact

But while many people have more money in their pockets, Sammy Robinson stressed that the full impacts, both environmental and economic, remain to be seen.

Already, Robinson sees “hundreds” of other boats in the water when he goes out fishing, whereas there were usually just one or two others during his decades running a fishing charter company.

And he wonders what will happen when the cargo ships begin to swarm the port to get their fill of LNG.

“Come back in about five years,” he said, “and I’ll tell you what the impacts are.”

The post At the heart of Canada’s rush towards liquified natural gas, Kitimat, B.C., is poised to boom | CBC News appeared first on Canadian News Today.



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At the heart of Canada’s rush towards liquified natural gas, Kitimat, B.C., is poised to boom | CBC News

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