First Nations groups will participate in a liquefied natural gas capitalization project

Leo Power, CEO of LNG Newfoundland and Labrador, Sharlene Gale, President of the First Nations Major Projects Coalition, and Misel Joe, Chief of the Miawpukek First Nation of Conne River sign capital partnership agreement in LNG Newfoundland Newfoundland and Labrador (Terry Roberts / CBC)

The Miawpukek First Nation and the First Nations Major Projects Coalition have signed an agreement to work towards an increased equity stake in a project to generate revenues from liquefied natural gas.

The agreement, which was signed on the first day of the Newfoundland and Labrador Oil and Gas Industries Association conference in St. John’s, represents the first-ever Indigenous participation in an offshore energy project in the province.

“The benefits of generating own-source income and the jobs this project will create for members of our community are significant and form a large part of our plan for self-sufficiency,” said Miawpukek First Nation Chief Misel Joe. , in a press release.

The project, called LNG Newfoundland and Labrador, includes the construction of a central gas hub near the four oil fields of the Joan of Arc Basin and a 600 km submarine pipeline to Grassy Point in Placentia Bay. The project would also require the construction of a special vessel to produce liquefied natural gas and then transport it to Europe.

In a presentation, Leo Power, CEO of LNG Newfoundland and Labrador, said the project would capitalize on demand from countries like Germany, which he said is looking to diversify its natural gas supply.

Joe, left, said the Miawpuk First Nation would risk very little money initially, but could invest more as the project progresses. (Terry Roberts / CBC)

According to Power’s presentation, the plan is to sanction the project in three or four years and start producing around four million tonnes of liquefied natural gas per year by 2030.

The project is expected to cost $ 10 billion, and Power has said it expects investment from around the world.

Joe said the Miawpuk First Nation would risk very little money initially, but could invest more as the project progresses.

“We do not plan to endanger our community,” he said.

Miawpuk First Nation will be the preferred supplier for escort vessel contracts for the project, and are expected to benefit from employment as well.

“Good, sane, sustainable”

Power presented the project as a way to capitalize on what he called the “cleanest fossil fuel”.

Power said global decarbonization initiatives are driving increased demand for liquefied natural gas, and Newfoundland and Labrador’s LNG will be an example of a “good, sane and sustainable” energy project.

An August report by the Intergovernmental Panel on Climate Change found that fossil fuel emissions are directly responsible for the 1.1 ° C global warming since the 19th century.

Power said the project would help, rather than hinder the transition to greener energy.

“We believe that the best thing Canada and Newfoundland and Labrador can do to help reduce emissions globally is to export massive amounts of LNG.

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