Seven Generations Energy (7G) has signed an agreement with Steelhead LNG to explore infrastructure development and open new overseas markets for natural gas in Canada.
As part of the agreement, 7G has also acquired a minority stake in Steelhead LNG and funded the deal using capital designated to support its market access initiatives.
7G CEO Pat Carlson said: "Our development agreement with Steelhead LNG marks a preliminary step among a number of market expansion opportunities that we are looking to develop.
“It represents an important export initiative that envisions our two companies, plus other Canadian midstream developers, service companies, capital providers, First Nations and communities coming together to deliver globally competitive, low-cost liquefied natural gas (LNG) and liquefied petroleum gas (LPG) into Pacific markets."
The company is also evaluating other market integration initiatives that include natural gas combined-cycle electric power generation, petrochemicals derived from either of natural gas or natural gas liquids and other LNG and LPG exports opportunities.
7G president and chief operating officer Marty Proctor said: "We are in discussions with a variety of LNG export proponents and other potential industrial, commercial and residential consumers.
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By GlobalData“We believe that a series of small projects, developed in increments and in service of stakeholders along the development path, will best serve British Columbians, Albertans, Canadians, and all stakeholders."
Through the partnership, Steelhead LNG and 7G aim to provide low-cost delivery of cleaner-burning natural gas produced in a responsible manner.
Steelhead LNG CEO Nigel Kuzemko said: "This arrangement with Seven Generations strengthens the resource capacity of Steelhead LNG and fortifies our approach to aboriginal and stakeholder engagement.
“The Malahat Nation near Mill Bay and Huu-ay-aht First Nations at Sarita Bay have been strong partners and we will continue to collaborate with them as these projects progress.”
