An entrepreneur with a grand vision for an abandoned British Columbia mining town is making a renewed push, aiming to transform the remote site into a major hub for Canadian energy exports to India.
A 13-Year Campaign for an Energy Corridor
Krishnan Suthanthiran, an Indian-Canadian engineer and medical-products entrepreneur, purchased the ghost town of Kitsault for approximately $7 million in 2005. Located 140 kilometres northwest of Prince Rupert, the town was fully abandoned by its 1,200 residents in 1983. Since 2013, Suthanthiran has been campaigning to bring a natural gas pipeline to the site.
His company, Kitsault Energy, initially focused on liquefied natural gas (LNG). The proposal later evolved to include converting gas into liquid butanol, an alcohol-based solvent and potential transportation fuel, for export to India. Now, sensing a new opportunity, Suthanthiran is proposing to twin the gas pipeline with an oil pipeline to transport bitumen.
Seizing a Political and Economic Moment
Suthanthiran is attempting to leverage Canada's national energy ambitions and recently warming relations with India to gain government backing. Following Alberta's agreement with the federal government to explore a new bitumen pipeline to the coast, he sees a chance to establish a "dedicated pipeline corridor" to Kitsault.
He has issued an open letter to Prime Minister Mark Carney and Alberta Premier Danielle Smith, urging them to support his plan. "What we're trying to say is that we want to bridge the needs of India with the needs of Canada and then create tens of billions of dollars in tax revenue and create lots of jobs," Suthanthiran said in an interview from Coimbatore, India.
He claims to have met with officials from India’s Ministry of Petroleum and Natural Gas and Indian Oil Corp., where he says he found interest. However, gaining traction in Canada has proven far more difficult.
The Uphill Battle for Recognition
"Literally, 13 years and I haven't got any attention from anybody," Suthanthiran stated, expressing frustration. He reports trying to reach Smith's office and the prime minister’s major projects office, but cannot get a response.
Energy experts in Alberta acknowledge the proposal but note its low profile. Richard Masson, an executive fellow at the University of Calgary’s school of public policy, said he has heard of Kitsault, but "it certainly hasn't come up around Calgary much."
Masson recalled that Premier Smith has publicly discussed three potential terminal locations for Alberta bitumen: Kitimat, Prince Rupert, and Roberts Bank in the Lower Mainland. "They didn't mention (Kitsault) at all as even being on the list of something to assess, which says something from at least an oil point of view," Masson added. He is also skeptical that Alberta will secure the necessary private-sector investment by the federal government's July 1 deadline for a new bitumen pipeline project.
Despite the challenges and skepticism, the owner of the B.C. ghost town remains committed to his long-term vision, hoping to finally turn his $7 million investment into a cornerstone of Canada's energy export strategy.
