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Black Diamond and WMA receive letter of award from Goldboro LNG

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LNG Industry,

Black Diamond Group Limited and Wskijnu’k Mtmo’taqnuow Agency Ltd (WMA), a corporate body wholly owned by the 13 Mi’kmaw communities in Nova Scotia, working together in partnership, have received a letter of award from the proponents of the Goldboro LNG Facility.

The letter reportedly confirms that the partnership has been selected to exclusively negotiate the contract providing for the construction of a lodge and associated amenities during the four year construction phase of the Goldboro LNG Facility proposed for Guysborough County, Nova Scotia. The estimated value of the contract is $720 million.

The partnership, named Mi’kmaq of Nova Scotia Black Diamond Limited partnership, is owned 51% by WMA. The Mi’kmaq will be responsible for the lodge’s hospitality services. Black Diamond, which owns 49% of the partnership, will be responsible for the supply and rental of the lodge which will house up to 5000 workers.

The contract is expected to begin on or before 30 June 2021, the anticipated date for a final investment decision (FID) by Calgary-based Pieridae Energy Limited, which owns the right to develop the multi-billion dollar Goldboro LNG facility. The letter of award from Pieridae Energy remains subject to a positive FID and/or approval of funding for pre-FID work and contemplates that the partnership will enter into definitive service orders as specific requirements are fully defined.

“We are excited about what this project means to the Mi’kmaw communities of Nova Scotia and the benefits it will bring to all of Atlantic Canada,” said Chief PJ Prosper, Regional Chief Nova Scotia and Newfoundland and Chief Tma Francis, Paqtnkek First Nation. “A key component of reconciliation in Canada is the ability to have meaningful involvement in projects happening within our territories. We desire responsible development and environmental stewardship that reflect a Mi’kmaq voice and our agreement with Pieridae is an example of how companies can respect our Mi’kmaw Rights and Title, and also provide an opportunity for Mi’kmaq participation in development on our lands. The project and the workforce lodge will provide significant economic opportunities for all our Mi’kmaq communities. With our communities as the majority owner in this partnership, we are well-positioned to deliver employment and skills development for Mi’kmaq members and subcontracts for Mi’kmaw businesses.”

Added Trevor Haynes Black Diamond’s Chairman and CEO, “Black Diamond, driven by its strong core values, is committed to engaging fairly and in partnership with the Mi’kmaq communities. Working together over the past four years, we have been impressed by the Mi’kmaq leadership and alignment with the value-creating opportunities that the Goldboro project offers for the Mi’kmaq, for Guysborough County, and for Canada as a whole. Black Diamond is pleased to be working with the Pieridae Energy team on this transformational project.”

Pieridae Energy CEO Alfred Sorensen said, “Signing the Benefits Agreement with the Assembly of Mi’kmaq Chiefs in early 2019 was the first step in helping to ensure the Mi’kmaq participate in the opportunities that stem from the construction of our Goldboro LNG Facility. This award for the Mi’kmaq and Black Diamond to work together on a $720 million, 5000-bed workforce lodge at the LNG site is a clear demonstration the Benefits Agreement is real, and that there will be more opportunities to come.”

This partnership represents a significant inclusion of Mi’kmaq people. It will help build capacity and industry experience as the partnership provides for Mi’kmaq oversight and management in the Project. Additionally, the partnership includes significant opportunities for Mi’kmaq employment and procurement that will be expected to be met by all sub-contractors.

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