Krishnan Suthanthiran, a medical technology entrepreneur originally from India, is determined to breathe new life into Kitsault, a deserted mining town in British Columbia. Having acquired the uninhabited settlement nearly two decades ago for around US$7 million, Suthanthiran is now advocating for Kitsault to emerge as a significant energy hub, aiming to connect Alberta’s oil and gas resources with Asian markets.
A Look Back at Kitsault’s History
Nestled about 140 kilometres northeast of Prince Rupert, Kitsault was once a thriving community during its brief stint as a mining town. Established in 1981 by Amax Canada Development Ltd. for workers at a nearby molybdenum mine, the town peaked at a population of approximately 1,200. However, the collapse of the molybdenum market led to the mine’s closure in 1982, and by 1983, Kitsault had become a ghost town, frozen in time.
When the town went on the market in 2004, it offered an unusual package: 92 homes, a hospital equipped with an unused X-ray machine, and amenities such as a curling rink, swimming pool, library, theatre, shopping mall, and pub. Today, the town remains largely empty, with Suthanthiran reportedly spending around $2 million annually on maintenance.
Suthanthiran’s Vision for Energy Exports
Suthanthiran’s latest ambition involves constructing two pipelines from Alberta to the coast—one for natural gas and another for crude oil. He envisions exporting these resources in the form of liquid butanol from a marine terminal that would be developed near Kitsault. During his recent visit to Calgary, he presented glossy brochures showcasing Kitsault’s potential and engaged with Alberta’s energy ministry staff to garner support for his proposal.
“I truly believe that this is the right thing for Canada and this is the right thing for the First Nations,” the 78-year-old entrepreneur stated in an interview. He has pitched a marine terminal at Observatory Inlet, approximately 30 kilometres from Kitsault, from which he believes tankers could efficiently transport crude oil to Asian markets.
Challenges and Opportunities
Despite Suthanthiran’s optimism, the road ahead is fraught with challenges. The Kitsault Energy proposal faces competition from other more established ports, like Prince Rupert and Kitimat, which already have operational LNG terminals. Heather Exner-Pirot, a senior fellow at the Macdonald Laurier Institute, highlighted that while Kitsault offers some advantages, such as existing housing and utility connections, it may not be the most viable option compared to these competing sites.
Barry Prentice, a business professor at the University of Manitoba, acknowledged that the waters leading to Kitsault are navigable and well-sheltered, making it an intriguing option. He noted, “If the idea is to move fast on things, I can’t think of any site that would be able to move faster than that.”
The Timing of Suthanthiran’s Proposal
Suthanthiran believes the current geopolitical climate has created a favourable environment for his plans. With ongoing trade tensions between Canada and the U.S., and increasing calls for diversifying energy exports, he argues that now is the time to act. The Alberta government is also pushing for new oil sands pipelines, committing significant resources to expedite proposals deemed vital for national interests.
Suthanthiran has expressed a willingness to step back from ownership of Kitsault if it means finding the right partners to realise its potential. “I don’t have to own the town forever,” he remarked, highlighting the collaborative nature he envisions for future developments.
Why it Matters
The revival of Kitsault could represent a pivotal moment in Canada’s energy landscape, particularly in the context of shifting global energy demands and the pursuit of new markets. Suthanthiran’s plans not only aim to capitalise on existing resources but also aspire to forge partnerships with Indigenous communities, potentially setting a precedent for how energy projects are developed in harmony with local interests. As Canada seeks to enhance its role as a global energy leader, the success or failure of Kitsault could have lasting implications for the nation’s energy strategy and its relations with First Nations.
