Seven Generations acquires stake in Steelhead LNG in Canada
A new agreement between Seven Generations Energy and Steelhead LNG leaves BC “exceptionally positioned” to be a leading supplier of Canadian gas to Asian markets in the coming years, says BC’s natural gas development minister.
Rich Coleman joined a statement Monday announcing that Calgary-based 7G will acquire a stake in Vancouver’s Steelhead and together explore new midstream infrastructure to support the company’s proposed projects on Vancouver Island.
7G is an increasingly dominant producer in the Montney natural gas play that straddles the B.C.-Alberta border, while Steelhead has two proposed LNG projects and an LNG design concept with a reduced cost and environmental footprint.
“This partnership formed by Steelhead LNG and Seven Generations Energy is an example of Canadian companies working together in innovative ways to deliver Western Canadian natural gas to market, which benefits not only British Columbians and Albertans, but all Canadians,” Coleman said.
The B.C. government rep and executives from both companies are stressing the partnership’s commitment to engagement with First Nations and stakeholder communities.
“We believe scalable projects like those being proposed by Steelhead LNG, that engage First Nations and communities from the beginning and place a high priority on our environment and safety, will deliver strong benefits to local communities, British Columbians, Albertans and Canadians,” said 7G CEO Pat Carlson, who has joined the board of directors of Steelhead LNG.
Steelhead LNG CEO Nigel Kuzemko acknowledged that the current market remains challenging for LNG development but expressed optimism.
“Our proposed projects remain very promising opportunities,” Kuzemko said.
“This agreement with Seven Generations is a positive step toward realizing our sustainable and economic delivery model for LNG. At the same time the economic circumstances are challenging and there is more work to do and milestones to achieve for our projects to succeed.”
Steelhead LNG is proposing to develop the Malahat LNG project on the Malahat Nation-owned Bamberton Industrial Lands, approximately seven kilometres south of Mill Bay on Vancouver Island. The proposed project is currently in the preliminary engineering and conceptual design stage.
The NEB has granted Steelhead LNG a licence to export liquefied natural gas for 25 years. It is proposed that at full-build out, there will be one LNG carrier loading at the facility every three to five days.
Steelhead LNG is working with Williams (Northwest Pipeline LLC) to determine the feasibility of building and operating a pipeline that would bring gas to the facility. The estimated 129-kilometre pipeline system would begin in the United States and end in Canada at the site of the proposed Malahat LNG project.
The company has also proposed a project at Sarita Bay.
Reduced footprint
Steelhead LNG says it is continuing to refine its At-Shore LNG (ASLNG) concept design, which makes use of floating LNG production and storage units moored to marine jetties.
“The concept will contribute to the low-impact, low-cost development of Steelhead LNG’s proposed Malahat LNG and Sarita LNG projects.
“The ASLNG concept requires a limited land-based footprint at each site, significantly reducing potential local impacts and potentially allowing for remediation of existing brownfield land.
“A single ASLNG production and storage unit can be designed and replicated – providing scalable production capacity at Steelhead LNG’s proposed facilities and an efficient decommissioning process at the end of the facility lifespan,” Steelhead says.
The company is also exploring ways of accessing newly emerging LNG markets such as the conversion of international shipping vessels to LNG from bunker fuel and diesel, which it says would help industry achieve GHG reduction targets.
