Steelhead LNG and WorleyParsons sign $30-million engineering contract for proposed Sarita Bay LNG Project

VANCOUVER, BC (February 6, 2015) – Huu-ay-aht First Nations and Steelhead LNG are pleased to announce the signing of a contract with WorleyParsons, which could be worth in excess of $30 million, for the provision of environmental, engineering, geotechnical and regulatory services at their proposed LNG Project at Sarita Bay on Vancouver Island.

WorleyParsons’ LNG activities cover more than 10 countries, and the company is a recognized global leader in the modularization of process plants. WorleyParsons has played a key role in the design, construction, and maintenance of 40 per cent of the LNG trains in operation around the world and has participated in various front end development phases of 12 proposed LNG projects in British Columbia. Over the past 25 years, WorleyParsons has also worked with numerous First Nations across BC and has provided specialized services for some of the largest projects in the province.

The proposed Project, a 24‐mtpa (million tonnes per annum) land‐based facility, is one of the largest proposed LNG projects in British Columbia. The new contract will encompass environmental impact assessments, preliminary Front End Engineering and Design (pre-FEED) studies, geotechnical investigations, and permitting approvals support for the project. WorleyParsons’ environmental team, with experience permitting similar facilities worldwide, will be supported by Hemmera, a Canadian environmental consultancy, creating a team of leaders in environmental and social sciences with expertise in Environmental Assessment, marine and terrestrial ecology, and experience working with First Nations.

“WorleyParsons and Hemmera bring local knowledge and global proficiency to the project, and we have faith in the process set out before us,” explained Huu-ay-aht Councillor John Jack. “Huu-ay-aht looks forward to working with both and moving into the future.”

The new contract is an extension of the strategic relationship that already exists between WorleyParsons, Steelhead LNG and Huu-ay-aht First Nations. WorleyParsons played a key role in the recently completed Preliminary Assessment & Screening stage of the proposed Project.

“We’re pleased to formalize our relationship with a world leader like WorleyParsons, who contribute their tremendous LNG experience and expertise,” said Nigel Kuzemko, CEO, Steelhead LNG. “This deal is a reflection of our commitment to Huu-ay-aht citizens and British Columbia at large to investigate possible environmental impacts of the project, along with other technical and economic aspects, prior to making any decision to proceed with development.”

WorleyParsons’ employees will support the project with technical personnel from its offices in Burnaby, BC, and London, England. In addition, the partnership will offer regional employment opportunities.

“Huu-ay-aht citizens will participate in the environmental studies and geotechnical investigations on Huu-ay-aht land, and they will provide crucial insight as well as local, historical and traditional knowledge about the proposed site and surrounding region,” said Jeff Cook, Elected Chief Councillor of the Huu-ay-aht First Nations.

The contract marks the first major milestone for the proposed Project since Huu-ay-aht citizens voted in favour of continuing to explore the proposed project at their People’s Assembly on November 29, 2014.

“In the lead up to our People’s Assembly vote in November, and since then, our citizens identified a wide range of environmental issues that are important to them,” said Jeff Cook. “Huu-ay-aht has a strong relationship with Steelhead, and our Nation is confident that this will also be true with WorleyParsons and Hemmera. We look forward to working closely with their personnel to examine issues raised by citizens over the coming months.”

WorleyParsons will begin the newly awarded activities for the proposed Project immediately. The investigative field work is expected to stimulate economic opportunities and spending in the region through the contracting and use of local wildlife monitors, boat charters, and accommodation and hospitality service providers.

If a Final Investment Decision to build the proposed LNG facility is made in 2018, it is expected that up to 4,000 jobs would be created during the construction phase, with 300 to 400 full-time jobs created when the plant is operational. In addition, the proposed Project would generate hundreds of spin-off jobs and business opportunities in the Alberni Valley in many sectors, including: business administration, hospitality, manufacturing, first aid, accommodation, recreation, tourism, transportation, catering, security and other service sectors. This includes local spin-off jobs with restaurants, schools, grocery stores, hotels, hospitals and providers of medical, business, heavy machinery maintenance, industrial and other services.

About Huu-ay-aht First Nations:

Huu-ay-aht First Nations is a self-governing Nation, whose lands are located in the Barclay Sound at the entrance to the Port Alberni inlet. Huu-ay-aht First Nations is a member of the Nuu-chah-nulth Tribal Council and one of the five First Nations signatories to the Maa-nulth Final Agreement, the first modern-day treaty to be concluded on Vancouver Island, which came into effect April 1st, 2011. Of the approximately 750 Huuay-aht citizens, 15 % reside around the village of Anacla, the Nation’s principal community close to Bamfield. The remaining 85 per cent live in Port Alberni, the Vancouver area, across Vancouver Island and beyond. The Huu-ay-aht First Nations have full ownership and jurisdiction over more than 8,200 hectares of land within their territories and continue to have rights throughout their Ha’houlthee (traditional territories). For more information about Huu-ay-aht First Nations, visit http://www.huuayaht.org.

About Steelhead LNG:

Steelhead LNG is a Vancouver‐based liquefied natural gas project development company, whose principals have created and led some of the world’s largest, most successful and environmentally responsible natural gas and LNG projects. Steelhead LNG’s investors include KERN Partners, a Calgary-based energy sector private equity firm, which is funded by a group of leading Canadian pension funds, North American university endowments, foundations, institutions and family offices. For more information about Steelhead LNG, visit http://www.SteelheadLNG.com.

About WorleyParsons:

WorleyParsons delivers projects, provides expertise in engineering, procurement and construction and offers a wide range of consulting and advisory services. We cover the full lifecycle, from creating new assets to sustaining and enhancing operating assets, in the hydrocarbons, mineral, metals, chemicals and infrastructure sectors. Our resources and energy are focused on responding to and meeting the needs of our customers over the long term and thereby creating value for our shareholders. WorleyParsons is listed on the Australian Securities Exchange [ASX:WOR]

About Hemmera:

Hemmera is a boutique environmental consultancy that has been making a difference across Canada since 1994. Our highly-respected, multi-disciplinary professionals are leaders in environmental and social sciences and engineering. For Hemmera, creating opportunities for clients and staff means going beyond technical services; as trusted advisors we support project success by providing customized solutions for industry, First Nations, and government. By delivering on our promises, we have earned opportunities to take on challenging projects, contribute to scientific and regulatory dialogue, and give back to the communities where we live and work. For more information about Hemmera, visit http://www.Hemmera.com.

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