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Squamish Nation inks deal with Woodfibre LNG

Click to play video 'First Nation approves LNG project for Squamish' First Nation approves LNG project for Squamish
WATCH: First Nation approves LNG project for Squamish – Nov 30, 2018

The Squamish Nation has approved economic benefit agreements for Woodfibre LNG, a project worth up to $1.8 billion in British Columbia’s Howe Sound.

The approval of the agreements by an eight to six vote means the First Nation could receive cash and contract benefits worth almost $1.1 billion.

Woodfibre LNG is licensed to export about 2.1 million tonnes of liquefied natural gas a year for the next 40 years from a former pulp mill about seven kilometres south of Squamish.

READ MORE: Woodfibre LNG project in B.C. to proceed

The First Nation says in a news release the agreements include annual and milestone payments totalling about $226 million, a cultural fund and cash for employment opportunities.

It says the agreements also mean the Squamish Nation and member-owned businesses could be awarded up to about $872 million in contracts, but only if they are fully qualified to win the bids.

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Squamish councillor Khelsilem says it was a difficult decision for many in the community.