Pacific NorthWest LNG and the District of Port Edward reach property tax agreement

PORT EDWARD, BC, Dec. 15, 2014 /CNW/ - The District of Port Edward and Pacific NorthWest LNG announced today that a 25 year agreement-in-principle in support of infrastructure and services totaling approximately $150 million has been reached.

The landmark agreement guarantees the District of Port Edward $3.25 million per year, escalating over the life of the agreement, paid in the form of property taxes complemented by front-end contributions by Pacific NorthWest LNG for district infrastructure improvements.

"Pacific NorthWest LNG intends on being a long-term positive contributor to the District of Port Edward and this agreement-in-principle serves as the blueprint for a multi-decade co-operative relationship that will benefit all residents of Port Edward," said Pacific NorthWest LNG President Michael Culbert. "I would like to thank Mayor Dave MacDonald, Port Edward Council and district staff for their dedication and hard work to get to this day."

The Minister of Community Sport and Cultural Development, Hon. Coralee Oakes, was in attendance to celebrate the signing of the agreement-in-principle between Pacific NorthWest LNG and the District of Port Edward. The Province has committed to introduce legislation at the earliest opportunity in 2015 to enable this agreement under the Community Charter.

"Liquefied natural gas, and Pacific NorthWest LNG in particular, represents the chance to bring our children who have gone elsewhere in search of opportunity back home to Port Edward," said Mayor Dave MacDonald. "The bold agreement with Pacific NorthWest LNG was reached on our terms and will ensure that Port Edward residents benefit from the LNG opportunity in the form of increased services, as well as infrastructure upgrades and ultimately, improved quality of life."

The agreement between Pacific NorthWest LNG and the District of Port Edward is subject to the project proceeding to construction and will be effective upon the execution of a long-term lease with the Prince Rupert Port Authority.

About Pacific NorthWest LNG

Pacific NorthWest LNG is planning to build a world-scale LNG export facility on Lelu Island in the District of Port Edward, British Columbia. The proposed facility will comprise an initial development of two LNG trains of approximately 6 million tonnes per annum (MTPA) each, and a subsequent development of a third train of approximately 6 MTPA. The proposed facility would liquefy and export natural gas produced by Progress Energy Canada in northeastern British Columbia. Pacific NorthWest LNG is committed to generating new economic and social benefits for the local community and First Nations, British Columbia and Canada in an environmentally safe and sustainable manner. Pacific NorthWest LNG is majority-owned by PETRONAS. JAPEX, Sinopec, Indian Oil Corporation and PetroleumBRUNEI are also partners in Pacific NorthWest LNG and its associated natural gas supply.

About the District of Port Edward

Port Edward is a small community located on the mainland of British Columbia, south of Prince Rupert. The District consists of approximately 18,387 hectares, bordered by the Skeena River, Inverness Passage, and mountains north of Highway 16. It is accessible by road, train, and by water. Residents of the community take advantage of employment opportunities and services available in Port Edward and in Prince Rupert, while enjoying the advantages of living in a small community. Medical and Government services are obtained in Prince Rupert. Education for children in grades Kindergarten to five is provided at the elementary school in Port Edward, while older students commute to the middle school and high school in Prince Rupert. The District encompasses two provincial parks, an ecological reserve and a major historical site at North Pacific Cannery. Outdoor recreation opportunities are abundant, and include fresh-water and salt-water sport fishing, hunting, hiking, camping, and boating.

SOURCE: Pacific NorthWest LNG Ltd.

Media Contact: Spencer Sproule, Senior Advisor, Corporate Affairs, 604.828.7680