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Volume 62 No. 10
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Sentinel
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Northern
www.northernsentinel.com
Wednesday, March 9, 2016
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Ledcor and Haisla sign with LNG Canada By LNG Canada News Release February 25, 2016 – We’re pleased to announce that LNG Canada has selected the Ledcor-Haisla Limited Partnership for site preparation activities at our proposed liquefaction and export facility in Kitimat, British Columbia. The Ledcor-Haisla Limited Partnership is a partnership between the Haisla Nation and Ledcor, and the site preparation contract will lead to tangible benefits for the Haisla and Kitimat communities. “As LNG opportunities present themselves to the Haisla we wanted to ensure benefits for our people beyond a few payments here and there. Joint ventures such as this one with Ledcor pro-
vide our people with training opportunities and employment, and an ability to partner with and learn from leading Canadian companies,” says Haisla Chief Councillor Ellis Ross. “It’s a commitment of Council that the revenues which come to the Nation through such partnerships are shared with our 1,800 members. This contract, and other contracts like it, presents an opportunity for Haisla members who have left to find work to come back to Kitimat for good jobs.” Ledcor is one of North America’s most diversified construction companies and believes in engaging with Aboriginal and local communities where it works to increase their role in our projects. “We value our
Chief Councillor Ellis Ross (l-r) from the Haisla Nation, Jeff Watt from Ledcor, Wim Ravesloot and Marc Maeseele from LNG Canada sign the site preparation contract. strong partnership with Haisla Nation, formed on trust and a willingness to work together,” says Quentin Huillery, Senior Vice President of Ledcor Constructors. “Ledcor
will continue to bring positive, long-lasting benefits to the local community by providing training, employment, and business opportunities on this project.”
The scope of the site preparation contract includes activities such as grubbing, excavation, and grading in the area where the LNG Canada workforce accommodation
centre will be located. This work will prepare the site for construction, should the project make a positive final investment decision. LNG Canada will
not undertake any work until the necessary permits and authorizations are in place, which we are working to obtain. As we finalize the Continued on page 2
Civeo scaling back accomodation plans in Kitimat A worker accommodation company is scaling back its Kitimat plans in response to the changing prospective
liquefied natural gas (LNG) landscape in the area. Edmonton-based Civeo has asked the
Kitimat at the Winter Games
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District of Kitimat for a new development permit for its 100 Loganberry/Sitka Lodge location to reduce the number of beds there from 2,154 to 1,101. And, cautioned the company, its final total could even be reduced to 646 beds depending upon the state of the Kitimat-area LNG industry. “Current economic conditions and construction delays have required a revised consruction plan layout and schedule,” stated the company in its application filed with the District. That new development permit application now calls for two phases – the first being the 436-bed permanent facility now nearly
finished and a second phase of a 364-bed facility. But, District of Kitimat background information that accompanied the application said Civeo “is proposing to proceed with Phase 2 only if Civeo is the successful bidder to build LNG Canada’s construction camp ….” “If the contract is not obtained, Civeo will not advance Sitka Lodge beyond Phase I.” That LNG project, with Shell as its lead partner, had been expected to make a final investment decision early this year but that decision has now been pushed back toward the end of the year. District of Kitimat background information terms Civeo’s
plans as changing from “a schedule-driven project to a budgetdriven project.” Also incorporated into Civeo’s new plans is seeking permission to convert its current 210-bed temporary construction camp into a more permanent facility. That camp now houses workers finishing the Phase I. Combining the Phase 1 436-bed count with the 210 beds in the temporary camp would make for 646 beds as a base level at the location. Should the second 364-bed phase be required, the total number of beds at the location would then total 1,010. The current development permit 2,154
bed total was established in 2014 during the height of LNG project economic impact speculation. Following District of Kitimat procedures, it’s now inviting public comment on the proposed new development permit leading up to Kitimat council’s March 21 meeting. A smaller Civeo camp also has financial implications for the District of Kitimat’s eventual plans to encourage affordable housing. A $500 per bed levy for the district’s affordable housing fund kicks in for the bed total over 360. At the original development permit size of 2,154 beds minus the 360 base bed total,
Civeo would have paid the district $897,000. With a smaller project now wanted, Civeo would therefore pay less. The 210-bed temporary construction camp was exempt from the $500 bed levy but now that Civeo wants that to be a permanent facility, district staffers are recommeding it be added to the overall bed total. That means should Civeo build both phases as called for in its development permit application, its levy would drop to $325,000. That works out to $500 each for 650 beds once the 360 bed base is subtracted from the new plan for 1,010 beds.