84 | INVEST IN BC 2014 PUBLISHED BY BUSINESS IN VANCOUVER
North Coast
THIS IS WHERE THE SHIP COMES IN B.C.’s future prosperity is anchored firmly on the North Coast – terminus for the nascent LNG industry
12%
Share of B.C. land area
SEAN KOLENKO
■Hazelton ■Kitimat ■Masset ■New Hazelton ■Port Clements ■Port Edward ■Port Simpson ■Prince Rupert ■Queen Charlotte City ■Sandspit ■Skidegate ■Telegraph Creek ■Terrace
F
lanked on all sides by mountains, trees and water, the District of Kitimat, at first glance, hardly paints a picture of large-scale industrial development. The town moves slowly, its scenic, natural surroundings appear untouched. But i ndustry is the fou ndation upon wh ich the 9,000-person coastal town was built – and it’s currently bracing for a job boom unlike any it’s seen since Kitimat was first incorporated in the 1950s. The centrepieces looming are the liquefied natural gas (LNG) export facilities planned for the Douglas Channel. To date, there have been three LNG plants proposed: Apache Corp. and Chevron Canada’s $4.5 billion Kitimat LNG, Shell Canada’s $12 billion LNG Canada joint venture with Korea Gas, Mitsubishi Corp. and PetroChina Co., and BC LNG, a small project co-owned by the Haisla First Nation and London-based natural gas shipping firm Golar. Currently, Rio Tinto Alcan is undergoing a $3 billion makeover of its aluminum smelter, also located on the Douglas Channel, and the terminus of Enbridge’s Northern Gateway pipeline is planned for the area as well. No final investment decisions have yet been made on any of the proposed LNG projects, but preliminary work has the town’s real estate market hopping. Shannon Dos Santos, a realtor with Re/Max Kitimat Realty, was the top Re/Max salesperson by transaction in B.C. in 2012 with 172 sales. And 2013, she says, was much of the same. “Activity here is tenfold and inventory is low,” says Dos Santos. Most popular among buyers are 1950s-era 1,000square-foot bungalows, priced at about $200,000. They sell the day they are listed, Dos Santos says. Commercial properties are also popular, she adds. The City Centre Hotel, a 48-room hotel downtown, sold for $1.75 million last year. The North Start Inn, a 24-unit motel east of the city centre, sold for $1.96 million to a construction company. And the old Aluminum City Motel, a long-abandoned motel comprised of small cabins, sold for $1.25 million.
02_INVEST IN BC 2014_P60-87_CS3.indd 84
The Fairview Container Terminal in Prince Rupert is 500 nautical miles closer to China than Port Metro Vancouver | PRINCE RUPERT PORT AUTHORITY
Bungalows and renovated hotels will hardly hold the expected stream of workers coming into town, however. Camps are also being planned. Kitimat LNG, for instance, has selected the old Eurocan mill site it purchased from West Fraser Timber as the location for its work camp. Edmonton-based PTI Group
2/7/14 3:10:19 PM