Canadian LNG Project Agrees Local Terms

Bear Head LNG, which is developing one of two LNG export terminals in Nova Scotia, said February 19 it has signed a mutual benefits agreement with the Assembly of Nova Scotia Mi’kmaq Chiefs and a project labour agreement with the province’s labour unions.

The benefits agreement with the assembly, which represents all 13 Mi’kmaq chiefs in Nova Scotia and is the highest level of collective governance for the Mi’kmaq of Nova Scotia, ensures the project will be developed in an environmentally-sustainable manner.

“This is a significant milestone for Bear Head LNG and the benefits agreement demonstrates our commitment to providing direct benefits to the Mi’kmaq of Nova Scotia and their communities,” Bear Head LNG COO John Baguley said. “We look forward to the continuing participation of the Assembly throughout the development of our LNG facility.”

Chief Terrance Paul, co-chair of the assembly, said the benefits agreement with Bear Head is important for ensuring Mi’kmaq rights are recognised and protected.

"The development of the Bear Head LNG facility will create important economic opportunities for our communities and for all Nova Scotians,” he said.

Bear Head LNG, on the Strait of Canso in Cape Breton, Nova Scotia, contemplates the initial development of 8mn mt/yr of liquefaction capacity, with approvals in place for future expansion to 12mn mt/yr. No date has yet been set for a final investment decision.

The project labour agreement, signed with the Nova Scotia Construction Labour Relations Association and Cape Breton unions, ensures a stable work environment for the development of the project.

“Bear Head LNG is looking to invest a significant amount of money and resources into the LNG facility – a labour agreement creating a stable environment for the life of the project will help position the project for success,” Baguley said. “A stable labour environment is good for everyone, including the workers.”

The agreement covers the terms of employment for union workers at the project, and gives priority to qualified residents of Cape Breton Island and mainland Nova Scotia.

“The labour agreement with Bear Head LNG will improve its competitiveness and is an important milestone in its effort to approve the project,” said Jack Wall, president of Cape Breton Building and Construction Trades, concluding that “Bear Head LNG will create jobs and opportunity for the local labour force for decades.”