Thank you, Mr. Chair and members, for this opportunity to speak to you today. I've been following your proceedings with some interest.
By way of background, Woodfibre LNG is an LNG project located on the shores of Howe Sound within the boundaries of the municipality of Squamish. We are on a site called Swiyat by the Squamish Nation peoples, whose traditional lands encompass the entire Howe Sound area.
The word “woodfibre” in Woodfibre LNG comes from the fact that we're on 86 hectares that was home to an old pulp mill that shut down in 2006. In fact, there was a town there with 1,000 people, a bowling alley, and a baseball diamond. Essentially, there was industrial activity for almost 100 years.
We purchased the land in 2015 because it was a good fit for an LNG facility: it was private property, had a deepwater port with no dredging required, and was zoned as industrial in the official community plan. We have an existing gas pipeline that passes right through the site, and the BC Hydro 500kv line and 138kv line also pass right through our site, which allows us to run this facility on electric drives. Very few LNG facilities run on electric drives. This means about 80% fewer GHG emissions, and more than 90% lower NOx and SOx emissions, plus it will make us one of the greenest LNG facilities in the world.
We have our federal and provincial EA approvals. I should say that the federal EA approval was probably the second one done by the current government, and the first oil and gas facility approved by the new government under its five principles. We also have a legally binding environmental certificate from the Squamish Nation, quite possibly the first independent indigenous environmental assessment process in Canada, which is something we're quite proud of.
We're modestly sized. We'll export about 2.1 million tonnes per year. This makes us about a tenth of the size of the big ones up north that you hear about, in Prince Rupert and Kitimat. That means we'll send about 40 vessels a year, one every 10 days, or 80 transits.
By comparison, you might be aware of the Nuka “West Coast Spill Response Study” of 2013 that estimated that about 11,000 ships moved past the Neah Bay buoy—that is, opposite Port Renfrew on Vancouver Island—and about 10,000 ship movements past Point Roberts, the small spit of land just south of where I live in the Lower Mainland that is part of the United States. More than half of these ships are container, cargo, or bulk cargo vessels.
The LNG vessels that will be arriving at our facility will be powered by LNG. It should be noted that World Wildlife Fund Canada commissioned a study for the north and found that, by using LNG vessels instead of heavy fuel or bunker fuel in marine vessels, you can reduce pollutants by 97% and GHGs by 25%. Of course, there would be a much less significant impact from a fuel spill, given that gas dissipates.
We're also currently in the TERMPOL process with Transport Canada. This is the technical review process of marine terminal systems and transhipment sites. We've undergone the three environmental assessment processes, but the TERMPOL is an additional voluntary process that helps fine-tune our operations in shipping from site to the open ocean. Other than some additional safety measures we can take—the use of additional tugs and inclusion of two pilots on-board the ships—much of how we get to the open ocean is strictly regulated. We don't have a lot of choice about how fast we go or when we have to be tethered to tugs.
It's in this context that I present to you some of our thoughts as a smaller industrial player on the west coast regarding marine protected areas from a perspective of what I think is a progressive company, given our approach to things like electrification and Squamish Nation.
The big question for a company like ours, when it's doing this type of investment—we will be investing well over a billion dollars in Canada, and that's a small LNG facility—is around certainty and political risk. Every time governments and regulators make moves to alter the landscape or change the deal, it creates uncertainty, which is possibly bad for business. Unfortunately, as Canadians, we get somewhat of a reputation, particularly in Asia where I spend a lot of time, about our ability to build things here.
Having said that, I don't want to say that we are in conflict with an effective marine protected area; rather, we would call for a clearer, and perhaps quicker, process. The reason for this is that it creates the certainty these investors are looking for. When investors see green on a map when it comes to land use, they don't go there. It's pretty straightforward. When the use of the land is uncertain, and in this case the use of the ocean, this is when money becomes shy.
Based on my experience, we should consider a few things when considering MPAs—again from our perspective.
The recently announced oceans protection plan should be integrated with the rollout of MPAs. Evidence-based decision-making and a renewed focus on reducing environmental and safety risks are critical when considering the creation of these areas, we believe.
If we can effectively implement the OPP, does it take pressure off some marine environments? Does it change what levels of protection an area might have?
If we have world-class marine environmental protection, can more adaptive approaches for a marine-protected area be considered? Here I would like to acknowledge—I'm not sure I'm allowed to say members of Parliament's names—Randeep Sarai, who has been a real leader on the west coast in bringing together communities, organizations, and indigenous people to have this kind of conversation.
Secondly, MPA creation must not take place in isolation. It must be integrated with other processes. When we have only one perspective in use planning, whether it's land use or marine, we create unnecessary conflict in society. When we consider a protected area, we must, of course, consider environmental issues but also other things such as indigenous use, commercial fishing, recreational use, and industrial and transportation uses.
Thirdly, in regard to adaptive management, from what I've read, this term has come up at this committee before. It's something that we think is quite important. The Vancouver Fraser Port Authority has an enhancing cetacean habitat and observation, or ECHO, program. As part of this program, they are examining ways to minimize, for example, the noise from vessels. Something as simple as keeping the propeller clean has one of the largest impacts. By doing this type of science, by understanding these types of things, we can adapt what industry does to perhaps allow greater interaction between possible marine protected areas and industry. I appreciate what the other speaker said in terms of these networks, but perhaps alongside industry it's something that should be embraced.
Finally, on indigenous zoning, maybe that's the wrong word, but we're very proud that we play a small part in how the Squamish Nation is moving forward with regulating their traditional lands. They have a very effective land use plan, called “Xay Temixw”. I might say that wrong, but it means “sacred land”. It's very effective, and they want to move from the land use plan and expand to the marine environment. As part of our agreement with them, we are helping to fund that. The advantage of this is that it's upfront use planning and it helps us have certainty.
When we first came to build the Woodfibre LNG site, we had access to their land use plan, and it was pretty easy to say, “Oh, that site is not a sensitive area; we can possibly go there and have a conversation.” It wasn't going to be a no. That meant a big deal in terms of our having some upfront certainty. Using this approach, indigenous zoning, if you will, and the combination of science and traditional use and planning can provide greater certainty and reduce future conflicts.
Let me close with this: according to the Prime Minister when he launched the oceans protection plan, maritime trade is 250,000 jobs and $25 billion of our economy. The reality is that maritime trade will only grow as our population grows. There will not be fewer ships, there will be more. There will not be fewer commercial vessels or fewer recreational vessels, there will be more. Our reliance on the sea as a source of food will only grow. Marine protected areas are important, but they need to be reflective of the needs of all.
Thank you.