Surrey, B.C. –  Terasen Gas (Vancouver Island) Inc. today announced that it has entered into landmark investment agreements that will provide two B.C. First Nations with the opportunity, through a limited partnership, to invest equity in and receive revenue from a regulated utility project. Pending approvals, including that of the British Columbia Utilities Commission (BCUC), the Chemainus First Nation and Cowichan Tribes will have the option to share a 15 per cent equity interest in the Mt. Hayes Natural Gas Storage Facility, located on Vancouver Island.

 

Terasen Gas has been working with the Chemainus First Nation and Cowichan Tribes throughout the planning, approval and construction phases of the project.

 

“We’ve been working with the Chemainus First Nation and Cowichan Tribes communities for many years now,” said Randy Jespersen, Terasen Gas President and CEO. “Providing an opportunity for direct ownership will contribute directly to the building of commercial skills capacity of aboriginal people, provide their communities with an important revenue stream for years to come and is foundational to our desire to participate with First Nations as their commercial interests grow more broadly in the future.”

 

The initial equity investment is expected to be approximately $6-million each for the Chemainus First Nation and the Cowichan Tribes, which will be made on completion of the Mt. Hayes facility, at their option. Terasen Gas will also support the Chemainus First Nation and Cowichan Tribes in obtaining the necessary financing so that each can make its equity investment in 2011. Each of the communities will have representation on the partnership’s Board of Directors, which will guide the ongoing operation of the Mt. Hayes facility.  
“The Mt. Hayes facility is located within the traditional territory of the Chemainus First Nation and our focus throughout our discussions with Terasen Gas has been on the recognition of this fact and the belief that we should benefit from developments within our territory,” stated the Council of the Chemainus First Nation. “We view this equity participation opportunity as an important opportunity to give substance to that belief. The Chemainus First Nation looks forward to solidifying a long and mutually beneficial relationship with Terasen Gas.”
“Cowichan Tribes are very excited to explore the different ways we can work with Terasen Gas and generate revenue that will help us better serve our members,” said Chief Lydia Hwitsum. “Working with Terasen Gas provides us with a complete investment opportunity, including support in obtaining investment funds for this project.”

 

Once fully operational in 2011, the Mt. Hayes facility will play an important role in B.C.’s natural gas infrastructure, by providing a secure, reliable supply of natural gas for both Vancouver Island and mainland customers when it is most needed or during planned and unplanned system interruptions.

 

"I applaud the agreement that has been achieved between the Chemainus First Nation and Cowichan Tribes, and Terasen Gas,” said Michael de Jong, Minister of Aboriginal Relations and Reconciliation. “The government has worked hard to create conditions by which both industry and First Nations may prosper in the development and use of our shared resources. This project demonstrates how benefits can be achieved by all parties involved."

 

The Mt. Hayes facility will provide a reliable and cost-competitive means to store natural gas closer to Terasen Gas customers. It will also provide substantial mid-Island economic and employment benefits, including an estimated $50-million in local expenditures and 40 jobs per year during construction in addition to nine full-time operations jobs at the facility.

 

 

 

Michael Chisholm, Corporate Communications Manager
Terasen Gas
Phone: (604) 576-7300
Email: michael.chisholm@terasengas.com

 

Jenn K. George, Communication and Legacy Coordinator
Year of the Cowichan, Cowichan Tribes
Phone: (250) 701-8381
Email: jenn.lands@cowichantribes.com

 

Ray R. Gauthier, Business Development Manager
Chemainus First Nation
Cell: (250) 210-8914
Email: economic.development@cfnation.com