ANACLA, B.C. - A Vancouver Island First Nation says a Vancouver-based liquefied natural gas company has pulled out of a planned LNG development just months after it was announced as a major milestone.

In an open letter, Huu-ay-aht Chief Robert Dennis and hereditary Chief Derek Peters say the First Nation has been notified by Steelhead LNG that it has “ceased current project work” on the Kwispaa LNG project.

Dennis and Peters say the First Nation is “deeply disappointed” and expects to provide a further update by the end of the month.

The letter does not contain a reason for the Steelhead LNG decision.

Steelhead LNG and the Huu-ay-aht announced in March 2017 that they would work together to develop Kwispaa LNG, an export facility at Sarita Bay on the west coast of Vancouver Island.

A news release issued just four months ago by Steelhead LNG said the Kwispaa project had entered the next phase of development with a submission to the B.C. Environmental Assessment Office and Canadian Environmental Assessment Agency.