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Canada First Nations Offered Majority Stake in LNG Canada Storage Tank

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LNG Canada, together with its joint venture partners, has entered an equity option agreement with MNT Investments, a limited partnership of the economic development entities of five First Nations that neighbor LNG Canada operations, it said on Tuesday.

This offers MNT Investments an opportunity to invest up to CA$1 billion ($712 million) to buy a majority equity stake in a special purpose vehicle that would buy a planned 225,000 cubic meter liquefied natural gas storage tank that is part of LNG Canada's Phase 2 expansion, a statement said.

LNG Canada would then lease the tank and operate and maintain it. This would be one of the largest indigenous ownership positions in Canadian infrastructure, LNG Canada said.

This would be conditional on LNG Canada's JVP approving their proposed Phase 2 expansion in Kitimat, British Columbia in the traditional territory of the Haisla Nation.

A final investment decision for the second phase is targeted for the end of the year.

Participating First Nations would have a majority ownership in major infrastructure related to Canada's biggest LNG export facility through the investment, the statement said.

Since the start of operations, LNG Canada and its joint venture partners have shipped more than 100 LNG cargoes. Phase 2 expansion could include construction of two more LNG trains that would increase plant capacity to 30 million tonnes a year.

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