Five northern Alberta First Nation and Metis communities have acquired a 43 per cent interest in the Wolf Midstream Access NGL pipeline system. The transaction was facilitated by the Alberta Indigenous Opportunities Corporation (AIOC), a provincial crown corporation that provided a $103 million loan guarantee. 

Participating communities are the Buffalo Lake Métis Settlement, Kikino Métis Settlement, Heart Lake First Nation #469, Saddle Lake Cree Nation #125, and Whitefish Lake First Nation #128. 

“We’ve become very focused and sophisticated in our economic development portfolios,” says Tony Bagga, a Heart Lake First Nation executive and president of the Northern Lakeland Indigenous Alliance – a recently created entity that will manage the ownership on behalf of the bands.  

“We are looking to advance our vision of self-sustainability and prosperity. Transactions such as this will bring multigenerational revenue to the communities involved which we can put to use in underfunded community initiatives such as infrastructure, healthy living, cultural events, etcetera.” 

The Access NGL pipeline system connects Wolf Midstream’s recently constructed natural gas liquids (NGL) recovery facility near Mariana Lake southwest of Fort McMurray to its NGL separation facility north of Edmonton.  

Location map of Wolf Midstream Access NGL pipeline system. Image courtesy Wolf Midstream

NGLs like ethane, propane and butane are recovered during oil and gas processing. They have a variety of uses including as a petrochemical feedstock for generating everyday products, as well as heating, cooking and blending for vehicle fuel. 

Acquiring an ownership stake in the Wolf Midstream NGL system “will help support the foundation of our Nations,” Bagga says. 

“The proceeds from this transaction will support our pillars such as promotion and retention of Indigenous culture, education, recreation, health, and promoting programming for our youth and Elders,” he says.   

“We a see this as a step in the right direction to economic reconciliation. Our communities will see direct benefits from the proceeds of this project, which will uplift our communities and support future generations. We are in hopes that this will inspire future participation for us and others.” 

The Indigenous Resource Network (IRN) is calling for a national loan guarantee program like want is offered by the AIOC to help more communities take ownership of resource projects. This would help address what the IRN calls a “crisis-level lack of opportunity” for Indigenous communities across Canada. 

“We’re incredibly excited and pleased that there’s another investment, another opportunity, and more communities brought in,” says IRN executive director John Desjarlais.  

“The loan guarantee program works; it helps to de-risk. It’s governments engaging and facilitating good, affordable access to capital that helps to drive economic reconciliation. It’s very much a success in terms of what we hope to see on a national level.” 

The AIOC was created in 2019 to cultivate Indigenous prosperity through investment in Alberta’s natural resource, agriculture, telecommunication, and transportation sectors. The organization mandate is to deliver up to $1 billion in investment support for qualified Indigenous communities that make a minimum $20 million investment. 

So far, the AIOC has delivered $513 million in loan guarantees through five transactions – with the Cascade Power Project, Northern Courier Pipeline, Lindbergh Cogeneration Facility, Enbridge oil sands pipeline system, and the Wolf Midstream Access NGL pipeline system. 

Twenty-seven Indigenous communities have developed project ownership through the AIOC, including 17 Alberta First Nations and 10 Métis communities. 

“Stronger Indigenous communities make for a stronger Alberta and a stronger Canada,” says Chana Martineau, CEO of the AIOC.  

“If you think about the ripple effect in a pond, as those communities strengthen, they then grow and invest and impact all the communities around them.”    

AIOC projects are creating consistent, multigenerational revenue streams, she says. In addition to local projects and infrastructure, Indigenous communities can invest funds to pursue additional profit-generating ventures, says Martineau, who is from the Frog Lake First Nation. 

“To build whatever the community most needs enables them to achieve their own goals,” she says. “All of our projects are designed to provide immediate return to Indigenous communities and Canadian corporations are increasingly valuing these partnerships.” 

Indigenous ownership of major energy projects is also ramping up in British Columbia. 

The proposed $3 billion Cedar LNG facility in Kitimat, 50 per cent owned by the Haisla Nation, would be the first Indigenous-owned LNG terminal in the world and could be in operation by 2027. The project holds significant potential for economic and social transformation in the region, say stakeholders.   

Also on the west coast, the Nisga’a Nation near Prince Rupert and its partners have proposed the $10 billion Ksi Lisims LNG terminal on Pearse Island – the project has entered B.C.’s environmental review process.  

Sixteen Indigenous communities along the $14.5 billion Coastal GasLink pipeline, which will feed natural gas from northeast B.C. to LNG Canada and Cedar LNG, have signed a 10 per cent ownership stake once the project is completed in 2023. 

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Canada should work with its allies and potential customers to receive credit for the global emissions reduction benefits of exporting liquefied natural gas (LNG), says a prominent Canadian energy advocate.  

The equivalent of all Canadian GHG emissions could be eliminated by helping Asia switch 20 per cent of its coal fired power stations to natural gas, says Shannon Joseph, chair of Energy for a Secure Future, citing a recent report published by the Canadian Chamber of Commerce.  

“Canada could help deliver 680 megatonnes of emissions reductions, and that’s more than our whole country,” she says.  

“We should do it and shout it from the rooftops. We should move forward with LNG as an energy and emission solution.” 

Receiving credit for lowering emissions with LNG could come through what’s known as Article 6 of the Paris Agreement, but Joseph says Canada need not wait for these carbon accounting rules to be settled before pressing forward.  

“We need to assert, confidently, the environmental value we would be delivering to the world,” she says.  

Shannon Joseph, chair of Energy for a Secure Future. Photo by Dave Chidley for the Canadian Energy Centre

Article 6 conceptually allows countries to collaborate with each other on emissions reduction goals by trading carbon credits. In theory, for example that could allow Canada receive credit for emissions reductions achieved in China by using Canadian LNG to displace coal.   

The Paris Agreement signatories have not yet agreed on the rules to make Article 6 a reality. Meanwhile, driven by Asia, last year the world consumed more coal – and produced more emissions from that coal – than ever before, according to the International Energy Agency (IEA).   

The IEA says switching from coal to natural gas for electricity generation reduces emissions by half on average. LNG from Canada can deliver an even bigger decrease, reducing emissions by up to 62 per cent, according to a June 2020 study published in the Journal for Cleaner Production.   

Even before Russia’s invasion of Ukraine, world LNG demand was expected to nearly double by 2040. The market has become even tighter as countries work to exclude Russian energy, says a report by Energy for a Secure Future.   

Japan and South Korea, as well as Germany have asked Canada to step up LNG development to help mitigate the energy crisis.   

With or without Article 6, Energy for a Secure Future is calling on Canada to work with its potential customers in Europe and Asia to recognize and credit the environmental benefits of Canadian LNG displacing higher emitting energy.   

“Canada’s allies have come here asking for energy, and we should work directly with them to find a way to have our environmental contributions recognized,” says Joseph, adding the U.S. has moved ahead without credits, more than doubling LNG exports since 2019.  

Canada has yet to export significant volumes of LNG after years of regulatory delay and cancelled projects – but things are changing.  

LNG Canada in Kitimat B.C. will be the first major export facility to operate, starting in 2025. Woodfibre LNG near Squamish begins construction this fall with the aim to start operating in 2027. Other proposed projects include the Indigenous-led Cedar LNG facility in Kitimat and Ksi Lisims LNG near Prince Rupert.  

LNG Canada CEO Jason Klein stands atop a receiving platform overlooking LNG processing units called trains that are used to convert natural gas into liquefied natural gas at the LNG Canada export terminal under construction, in Kitimat, B.C., on Wednesday, September 28, 2022. CP Images photo

Meanwhile, India, China and Japan remain consumers of Russian oil and gas, according to the 2023 Statistical Review of World Energy.  

“We are trying to help our allies meet the challenges they are facing. One of these is ensuring that their populations – sometimes of over a billion people – can even access modern forms of energy,” Joseph says.  

“If Canada wants to be relevant and to lead, we have to come to the table with solutions to this question, alongside the environmental one. LNG is our biggest card.”  

India will have the world’s largest population by 2028 – climbing to 1.45 billion and rising to 1.67 billion people by 2040, according to the United Nations Population Fund.  

“Currently India is the fourth largest importer of LNG [in the world] and demand is expected to grow massively as 270 million people move up the socioeconomic ladder,” says Victor Thomas, CEO of the Canada-India Business Council. 

Canada’s potential to deliver LNG to India “just makes good sense when you look at the geopolitical fractures that have occurred since 2022,” he says, noting the U.S. has recognized the opportunity and is taking action to form new business relationships in India.  

Burning wood and other biomass for heat and cooking is still common in the South Asian country, while coal produces around three quarters of India’s electricity. According to the IEA, by 2040 India’s total energy demand will be 70 per cent higher than it was in 2019.    

“Transitioning from wood burning to LNG is a massive emissions reduction,” says Thomas. “It’s a safe and reliable opportunity. People are looking for a country like Canada to be able to provide that.”  

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Canada’s carbon capture and storage (CCS) industry is an important tool in the global quest to reduce emissions, says an industry expert who was among 40 researchers who recently participated in a CCS summer school in Regina. 

In July, Eadbhard Pernot, and colleagues from 29 countries participated in the International Energy Agency Greenhouse Gas R&D Programme CCS Summer School in Regina. The draw to Saskatchewan’s capital – the fourth such event – was the International CCS Knowledge Centre and an opportunity to obtain hands-on CCS experience with experts at SaskPower’s Boundary Dam Carbon Capture Project near Estevan, Saskatchewan. 

Canada has five of the world’s 30 commercial CCS operations, including at the coal-fired Boundary Dam Power Station. It’s the world’s first and only CCS facility operating in tandem with a commercial power plant – which has captured and stored over 5 million tonnes of carbon dioxide (CO2) since 2014. 

“The lessons learned from the Boundary Dam facility are going to be really important for countries that have recently built coal power plants,” says Pernot, a policy manager with Boston-based Clean Air Task Force, which promotes zero-emissions technology and policies.  

“The project has consistently performed at its capacity. And I think that’s really something Canada should be proud of.” 

Eadbhard Pernot at SaskPower’s Boundary Dam Carbon Capture Project near Estevan, Sask. Photo courtesy the International CCS Knowledge Centre

Summer school participants studied all aspect of CCS, including the capture, transportation and storage of CO2, industrial uses of CO2, costs and economic potential of CCS, regulations, policy and GHG accounting, public communication and health and safety. 

“As far as storage, we’ve been injecting fluids and gases into the subsurface for decades,” says Eadbhard. 

“So, the science is pretty clear in the sense that we can put all of these things together. We can capture emissions and transport and store them permanently in the subsurface.” 

More CCS projects are being developed in Canada, including through Pathways Alliance, a group comprised of the six largest oil sands producers representing 95 per cent of production that plans to spend around $24 billion on a CCS network and other technologies to achieve net zero emissions in the oil sands by 2050.  

The industry coalition has already begun design work on what will be the backbone of one the world’s largest CCS projects, a 400-kilometre pipeline connecting an initial 14 oil sands facilities to a storage hub in northern Alberta. The project is expected to remove up to 12 million tonnes of emissions annually by 2030.   

Does CO2 stay underground once injected deep into geologic formations?  

Yes, says Pernot, noting the gas originates in many subsurface structures – approximately 1.845 billion-billion tonnes of carbon are contained in Earth’s mantle and crust, while 43,500 billion tonnes are found at the surface.  

“I think it’s also important to recognize that when we are talking about putting CO2 back in the ground, it’s not under someone’s house,” says Pernot.  

“We are talking about depths between one and three kilometres. We’ve been injecting fluids and other gases for decades without any incident of leakage in terms of storage.” 

Since 2000, Alberta and Saskatchewan have safely stored 47 million tonnes of emissions – the equivalent of removing 10 million cars from the road – says James Millar, CEO of the International CCS Knowledge Centre, noting Canada’s sector is an example to the world. 

Canada accounts for approximately 15 per cent of current global CCS capacity even though it generates less than two per cent of global CO2 emissions, he says.  

“We demand, and we rely on, these [oil and gas] products every day,” says Millar. “We don’t want to be without them. I’ve never heard anyone who is against CCS, say ‘I will go back to living in a cave and reading by lamplight and driving horses and buggies.’ Isn’t it better for industries that manufacture these products to do something about the issue?” 

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Stereotypes can be found in strange places. For Indigenous leader Joe Bevan, the most recent was in a Vancouver taxi. While speaking of his support for the energy sector, the driver said, “Oh, you’re First Nations. I thought you guys don’t like oil and gas.”  

“I thought, oh goodness, really?” says Bevan, CEO of Gitga’at Development Corporation in Prince Rupert, B.C. “That narrative is still spinning in peoples’ heads. Well, I’ll tell you, that’s not us.”  

Even though many Indigenous people in northwest B.C. support LNG development, there’s a need for more education about the industry in Indigenous communities more used to 100-year-old forestry and fishing economies, Bevan says.  

“We know little about gas and oil even though it’s happening right in our own backyard,” says the former chief councillor of the Kitselas First Nation. “We’ll still have forestry and fishing, just to a lesser extent. We now have a new economy right in front of us and that’s LNG, logistics and mining.”  

The opportunity for LNG development on the west coast is ramping up thanks in part to Indigenous leadership. The $18 billion LNG Canada export terminal in Kitimat – supported by the Haisla Nation – will start operating in 2025.   

The proposed $3 billion Cedar LNG facility, also in Kitimat, is 50 per cent owned by the Haisla Nation and would be the first Indigenous-owned LNG terminal in the world. It could be in operation by 2027. The project holds significant potential for economic and social transformation in the region, the community says.    

Also on the west coast, the Nisga’a Nation near Prince Rupert and its partners have proposed the $10 billion Ksi Lisims LNG terminal on Pearse Island – the project has entered B.C.’s environmental review process.   

Woodfibre LNG near Vancouver, which could start operating in 2027, is the only major project in Canada with an Indigenous issued environmental assessment certificate.   

Sixteen Indigenous communities along the $14.5 billion Coastal GasLink pipeline, which will feed natural gas from northeast B.C. to LNG Canada and Cedar LNG, have signed a 10 per cent ownership stake once the project is completed in 2023.   

“Some people don’t understand the economy has changed and we need to change with it,” says Bevan. “There needs to be that change – to start biting into the oil and gas industry, saying, ‘What is my role now and how do I fit into this?’”  

Energy companies must understand that young Indigenous people in B.C. need support building their industry knowledge in order to participate in development, he says.   

“They have to start helping us and educating us.”  

In the end, many Indigenous people have bypassed dreams of working in the energy sector, says Bevan. The slow pace of development has forced them to move on.  

“Some people say, ‘I died on the vine waiting for it to happen.’”   

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From LNG export facilities on the west coast to pipelines across western Canada, Indigenous communities are building on momentum and ramping up efforts for oil and gas infrastructure ownership.  

The Indigenous Resource Network has launched its Ownership is Reconciliation campaign, which calls for a national guaranteed loan program that would enable Indigenous communities to grow their participation in major energy projects. 

“Economic development is one of the greatest catalysts for self-determination,” says John Desjarlais, executive director of the Indigenous Resource Network, noting access to affordable capital is often a barrier to economic growth for Indigenous communities.  

“I’m quite pleased with the sweeping economic impact of Indigenous participation in oil and gas. The biggest thing is not waiting on anyone – becoming entities that can fund our own infrastructure, programming, and culture.” 

If the loan program comes to fruition, a variety of natural resource projects could be developed depending on the location of Indigenous communities – from mining critical minerals on the Canadian Shield to oil and gas in western and Atlantic Canada. Hydrogen production and carbon capture and storage are also of interest to Desjarlais. 

“They sky is the limit,” he says, adding Indigenous communities are already making significant progress in developing and owning energy infrastructure.  

The proposed $3 billion Cedar LNG facility in Kitimat, 50 per cent owned by the Haisla Nation, would be the first Indigenous-owned LNG terminal in the world and could be in operation by 2027. The project holds significant potential for economic and social transformation in the region, say stakeholders.  

Also on the west coast, the Nisga’a Nation near Prince Rupert and its partners have proposed the $10 billion Ksi Lisims LNG terminal on Pearse Island – the project has entered B.C.’s environmental review process. 

Sixteen Indigenous communities along the $14.5 billion Coastal GasLink pipeline, which will feed natural gas from northeast B.C. to LNG Canada and Cedar LNG, have signed a 10 per cent ownership stake once the project is completed in 2023. 

In Alberta, 23 First Nation and Metis communities are now 12 per cent owners of seven operating Enbridge oil sands pipelines, a $1.1 billion investment announced in September 2022 that is the largest Indigenous energy transaction ever in North America.  

The deal was made with the support of a $250 million loan guarantee from the Alberta Indigenous Opportunities Corporation, which has up to $1 billion available in loan guarantees to support Indigenous investment opportunities.   

A national Indigenous loan guarantee program would be a similar concept on a Canada-wide scale.  

As the relationship between Indigenous communities and the resource sector improves, more companies are seeking Indigenous partnerships prior to applying for project permits, says Desjarlais. 

“It’s a win, win, win,” he says. “Industry loves it because I think they realize there are considerable challenges in treating Indigenous people as just stakeholders or part of a process, and considerable benefits when treating communities like partners.”

Through Energy for a Secure Future, Desjarlais and several of his peers, including Haisla Nation Chief Councillor Crystal Smith, travelled to Ottawa in April to meet with diplomatic representatives from Canada’s G7 partners – Germany, France, Japan, and the United States – as well as delegations from Poland and India. Their message was clear, Indigenous people want to drive energy sector development. 

“Every official had a real desire to really understand Indigenous sentiment around resource development,” he says. “There was a sincere desire to learn from our perspective.” 

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There’s a good reason Chief Clifford White, a First Nations LNG Alliance board member and hereditary leader of the Gitxaala Nation near Prince Rupert, B.C., walks a fine line when it comes to resource development on or near his territory.  

There’s a lot happening near the remote island village of Lax Klan (Kitkatla) – the $14.5 billion Coastal GasLink pipeline terminus, the $18 billion first phase of LNG Canada, and the proposed $3 billion Cedar LNG facility, 50 per cent owned by the Haisla Nation – all at the Port of Kitimat 120 kilometres east. To the north, the Nisga’a Nation and its partners have proposed the $10 billion Ksi Lisims LNG terminal on Pearse Island.  

Once operating, the projects will deliver LNG by ship to Asian markets. A 2022 study by Wood Mackenzie found that Canadian LNG exports could reduce net emissions in Asia by 188 million tonnes per year through 2050 by providing a cleaner alternative to coal. 

White supports the development. Even though the projects are outside his territory, the Gitxaala people are consulted on proposed marine traffic and potential environmental disturbances.  

“Gitxaala maintains traditional laws governing impacts and the sustainability of land, water, air, and subsurface,” says Chief White.  

Location map courtesy Gitxaała Nation

Merging business opportunity with environmental protection is important, he says, adding some Gitxaala are designated environmental “watchmen” that monitor territories by boat and report back to the community. 

Concerns about LNG development and its potential effect on marine life have led to opportunities, such as an agreement with marine service provider Seaspan where Gitxaala members will be trained to pilot LNG harbour and ship escort tugboats. Chief White says there is also “huge potential” for environmental training and education, as well as jobs at LNG Canada and Cedar LNG. 

“We are working with other communities along the LNG shipping route, so they also are employed and part of the process,” he says. “That buy-in is basically allowing Indigenous people to govern their traditional territories and environment and to sustain their families.” 

Through years of dialogue, the Gitxaala have a positive relationship with LNG Canada. The project has helped the community cultivate productive relationships with businesses, as well as the provincial and federal governments, says Chief White. 

The First Nations LNG Alliance is a group of Indigenous leaders who support LNG development as a means of creating economic opportunity and social change. The collective works to educate the public, industry, business, government, and First Nations about the benefits of LNG and its capacity to reduce global emissions by helping displace coal fired power generation in other countries. 

Chief White shares a childhood memory, which strengthens his resolve to preserve the Gitxaala way of life. 

There’s a boy in a rowboat gliding through the sea a few kilometres from Lax Klan (Kitkatla) – each dip of the oars placed with precision to avoid disturbing wildlife – a skill learned from elders. Low clouds hang overhead. A seagull glides over the water. A stand of old growth forest reaches into the mist.  

In the distance, a rock outcrop – covered with seaweed, shellfish, and birds – protrudes from the ocean. The boy rows closer and stops. All is quiet. He reaches for his hunting rifle, slides a bullet in the chamber, and briefly thinks about home. The smell of wood heat. Hauling drinking water in buckets. Laughter. Storytelling. Sharing. 

The boy calls out to the seals – another skill learned from elders. 

A few seconds later three seals emerge from the rocks. His heart races. He raises his gun, aims, and fires. An animal slumps. Ten minutes later it’s in the boat. Food for several families. A young Clifford White – infused with hope – thanks the Creator and the animal. He rows home as the sun sets behind the inlet. 

“We never knew poverty, although by Canadian standards we were severely impoverished,” says Chief White, who has been elected Gitxaala chief councillor four times. “We never knew poverty because the sea, land, and air were right in front of us for food.” 

Lax Klan (Kitkatla), located on Dolphin Island 60 kilometers south of Prince Rupert, has been occupied for over 10,000 years and is currently home to 500 residents. Over 1,600 Gitxaala live in other regions. 

Gitxaala hereditary leaders from four clans: Gisputwada, Ganhada, Lax’sgiik and Laxgibuu, are responsible for managing and protecting their territories according to traditional laws that focus on the Creator, sharing, and environmental stewardship.  

“Gitxaala is a strong sovereign nation,” says Chief White. “Fostering true relationships through strong partnerships, creating sustainable economic opportunities, and leading, learning and sharing with our people is the way to go.” 

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Trans Mountain Corporation, which is building the Trans Mountain pipeline expansion from Edmonton to the west coast near Vancouver is continuing its mission of working closely with Indigenous communities. 

“We have achieved an unprecedented level of Indigenous involvement in the expansion project—through job creation, procurement opportunities, partnerships, and the environmental process,” CEO Dawn Farrell says in the company’s new report on environmental, social and governance (ESG) performance. 

The federal government – owned company said over 3,100 Indigenous people have been hired to work on the expansion as of Dec. 31, 2022, or about 11 per cent of the total workforce of 28,900 people.  

Around 25 per cent of project contracts have been awarded to Indigenous businesses and partnerships – totaling around $4.8 billion. 

An example of these relationships is Stqó:ya Construction, a heavy construction company that is majority-owned by Seabird Island Band, located between Hope and Chilliwack, B.C. 

Through contracts with Trans Mountain, both on the expansion project and through ongoing operations, Stqó:ya has reached an unprecedented level of Indigenous employment with 70 per cent of their workforce being Indigenous. 

The original Trans Mountain Pipeline, now being twinned with 980 kilometres of new pipe and 12 new pump stations, started operating in 1953. It is Canada’s only corridor for transporting crude and refined products to international markets via vessels loaded in Burnaby. 

Construction of the expansion is approximately 80 per cent complete. When it starts operating in 2024, pipeline capacity will climb from 300,000 to around 890,000 barrels per day.  

The case for the expansion is strong as the world experiences record and rising oil demand.  

Global oil demand is at an all-time high of around 102 million barrels per day, according to the International Energy Agency. Data compiled by the Canada Energy Regulator reveals that Canada’s international oil exports rose from 9.3 million barrels in 2015 to 49.7 million in 2022. 

As part of construction, Trans Mountain has conducted over 18,700 person days of environmental inspection and completed over 6,400 person days of Indigenous monitoring, as well as over 40,000 person days of technical field studies completed by third-party consultants. 

“Trans Mountain has one of the largest archaeological programs in Canada,” says the report. “To protect heritage resources, since 2016 the company has invested more than $40 million in archaeological studies and conducted more than 79,000 shovel tests.” 

The company also delivered an Indigenous cultural awareness training course to all employees and contractors in 2022.  

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A prominent First Nations business leader is voicing support for oil and gas while calling for greater collaboration between industry, financial institutions, and Indigenous communities to help maximize prosperity and environmental protection.

“My vision, or I would hope everybody’s vision, is that together we’re stronger,” said Chris Sankey, CEO of Blackfish Enterprises and former elected councillor of the Lax Kw’alaams First Nation, during a recent panel discussion at the Canadian Club in Toronto. “If we can form this partnership, Canada and the Indigenous population can become the next global energy powerhouse.”

Sankey grew up in poverty along B.C.’s picturesque northwest coast. His childhood experiences influenced his views on environmental protection and prosperity. He now provides strategic planning services to the energy sector on engagement with Indigenous communities.

“It’s not fun watching people live in poverty,” he said. “If you can get alignment, which I’m tasked to do right now, we de-risk projects and attract investment.”

Cooperation between industry and Indigenous communities leads to economic strength, said Sankey. That means more jobs and more tax revenue for government.

Enhanced communication between Indigenous communities is also needed, he said.

“Energy literacy is sorely missing, not just within our communities but across the country,” he said.

Sankey lamented the loss of the proposed $36 billion Pacific Northwest LNG export project near Prince Rupert, which was cancelled in July 2017 by developers citing market conditions after two First Nations and an environmental group filed separate judicial review applications in 2016, according to a media report. Another challenge was filed in January 2017.

The project would have provided many economic and social benefits to people in Sankey’s home territory – including approximately $1.65 million every year for trades and post-secondary training for the lifetime of the project.

“It wasn’t just about the project,” Sankey says. “It was about growing our own capacity so that we become the operators and owners of the business.”

Since then, Indigenous communities are becoming increasingly important players in Canadian oil and gas.

“Based on my conversation with our communities, they recognize what we lost, especially when we see our Haisla brothers and sisters continue to find success in this space. It was the site PNW LNG chose that was the issue and not that of a project,” Sankey says.

“More importantly, both government and industry recognize the import role Indigenous communities play when it comes to responsible resource development. I cannot stress it enough – alignment, equity, a seat and a say in collaboration with Indigenous communities are keys to attracting investment. It must be meaningful and not a check off the box.”

The proposed $3 billion Cedar LNG facility in Kitimat, 50 per cent owned by the Haisla Nation, has received regulatory approval to proceed under 250 binding conditions and could be in operation by 2027.

To the north, the Nisga’a Nation near Prince Rupert and its partners have proposed the $10 billion Ksi Lisims LNG terminal on Pearse Island – the project has entered B.C.’s environmental review process.

Sixteen elected First Nation governments along the $14.5 billion Coastal GasLink pipeline, which will feed natural gas to LNG Canada and Cedar LNG, have signed a 10 per cent ownership stake once the project is completed in 2023.

Around $1.5 billion in contracts have been awarded to Indigenous and local businesses related to Coastal GasLink. Together, the Trans Mountain Pipeline expansion, LNG Canada and Coastal GasLink have spent around $9 billion with Indigenous-owned and local businesses.

In Alberta, 23 First Nation and Metis communities are investing $1.1 billion to become 12 per cent owners of seven operating Enbridge oil sands pipelines, the largest Indigenous energy transaction ever in North America.

In the end, oil and gas are a critical part of life – from clothing to medical supplies to buildings, said Sankey.

“Oil and gas aren’t going anywhere for a very long time,” he said.

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With an eye on legacy, Edward Innes is helping maintain environmental standards along a section of the Coastal GasLink pipeline near Terrace B.C.

The 78-year-old Elder of the Kitselas First Nation has been a construction monitor and community liaison (CMCL) on the project since 2019 – observing people, projects, and wildlife. He has completed over 550 reports, which are uploaded to a community database.

“I tell these people who are working on the [Coastal GasLink] project – this is history, just like the highway and railway,” says Innes, adding he sometimes reports in Sm’algyax – the Kitselas language. He is one of the last language keepers in the community.

The CMCL program offers Indigenous people the opportunity to participate in construction within their traditional territory for the purposes of observing, recording and reporting, says Coastal GasLink. The program’s core value is transparency with Indigenous communities.

“For me, that’s success, when a community feels they have been represented, and a community feels their members have been able to observe,” says CMCL Coordinator Harry Bodewitz, who travels with Innes to sites along the pipeline – like Cable Crane Hill – a steep incline that has a gondola-like structure built to transport equipment, workers and materials.

“We ask each other, where would you like to go? What would you like to see?” says Bodewitz.

Elder Edward Innes (centre) at Cable Crane Hill in northwest B.C. Photo courtesy Coastal GasLink

The $14.5 billion pipeline stretches 670 kilometres from northeast B.C. near Dawson Creek to the Port of Kitimat. The pipeline is scheduled for completion in 2023 and will transport natural gas to the $18 billion first phase of the LNG Canada export terminal in Kitimat – which is forecast to begin operating in 2025.

The proposed $3 billion Cedar LNG project, 50 per cent owned by the Haisla Nation in Kitimat, will also source gas from Coastal GasLink. Cedar has regulatory approval to proceed under 250 binding conditions and could be in operation by 2027.

“I get goose bumps when I think of it,” Haisla Nation Chief Councillor Crystal Smith said in a recent report published by Energy for a Secure Future.

“Not just for our community but for the neighbouring First Nations too. We hold them close in the ability to share in the opportunities that the project brings.”

After reaching the west coast, pipeline gas will be converted to liquefied natural gas (LNG), pumped onto vessels, and shipped primarily to Asian markets to help lower emissions by displacing coal-fired power generation.

Switching from coal to natural gas reduces emissions by half on average, according to the International Energy Agency. Canadian LNG can deliver an even bigger decrease, reducing emissions by up to 62 per cent, according to a June 2020 study published in the Journal for Cleaner Production.

As Coastal GasLink nears completion, Innes reflects on his connection to land and history. He sometimes wakes to clouds and rain drifting through the Coast Mountains. Sometimes the sky is blue, reflecting light off the Douglas Channel. No matter the weather, he is determined to leave a legacy.

“What I tell the men, when I’m around with them, I say to them, ‘In the olden days, the Canadian railway was started, and they didn’t put the environment under consideration,’” says Innes, noting Coastal GasLink worksites are clean and tidy.

The Kitselas people have inhabited their territory for around 5,000 years. Their name, derived from Gitselasu, means “people of the canyon.” The Kitselas Canyon on the Skeena River is the heart of the community.

“I’ve been watching this project,” says Innes. “They really put the environment under consideration.”

Most communities along the pipeline corridor support Coastal GasLink, says Innes. Project agreements have been signed with all 20 elected First Nation governments along the project route.

Around $1.5 billion in contracts have been awarded to Indigenous and local businesses. Sixteen First Nations – including Kitselas – have signed a 10 per cent ownership stake once CGL is completed.

“It’s good for everyone all across Canada,” says Innes. “Kitselas is very happy about it, too.”

Even with support from Indigenous communities, the pipeline still has opponents. Innes has little patience for a group that attacked a worksite near Houston, B.C. in 2022, causing millions of dollars in damage.

“That’s not very good at all – period,” he said.

Elder Edward Innes at Cable Crane Hill in northwest B.C. Photo courtesy Coastal Gas Link

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Canada’s largest natural gas producer is taking a significant step to reduce emissions in the transportation sector. 

Tourmaline Oil, along with California-based 50-50 partner Clean Energy Fuels, is spending $70 million to build and operate a network of up to 20 compressed natural gas (CNG) fueling stations across western Canada over the next five years. The stations, operated by Clean Energy with Tourmaline-supplied natural gas, will provide extended highway corridors for CNG-equipped heavy duty and commercial trucks. 

“This is an opportunity to improve the environment by using a resource that we have in abundance, which is natural gas,” said Michael Rose, CEO of Tourmaline. 

Tourmaline produced approximately 2.3 billion cubic feet of natural gas per day in 2022 – about 13 per cent of Canada’s total. 

The CNG stations will give vehicle operators an opportunity to transition fleets to lower emissions fuel, the company said.  

CNG produces 20 per cent less C02 than diesel and 99 per cent fewer airborne particulates. CNG also produces 90 per cent less carbon monoxide, 90 per cent fewer nitrogen oxides, and 99 per cent fewer Sulphur oxides, according to a joint Tourmaline and Clean Energy FAQ document. 

“We think natural gas is a great enabler of almost the entire energy stack – it’s going to be the single biggest component of it, but it also enables renewables because you need natural gas as a backstop,” said Rose, noting Tourmaline’s drilling fleet now runs on CNG. 

Michael Rose, CEO of Tourmaline Oil at a press conference in Calgary Alta. April 2023. Photo by James Snell for the Canadian Energy Centre

The transportation sector accounted for 22 per cent of Canada’s total emissions in 2021, according to the latest National Inventory Report prepared for the United Nations.  

Once operating, the CNG stations could fuel around 3,000 trucks a day, lowering C02 emissions by 72,800 tonnes per year – equivalent to removing 15,690 cars from the road or planting 1.2 million trees and letting them grow for a decade, said Tourmaline.  

The partnership’s first CNG station is operating north of Edmonton. Subsequent locations are planned in 2024 for Calgary and Grande Prairie in Alberta and Kamloops, B.C., with the network expected to grow from Prince Rupert, B.C. to Winnipeg, Man.  

As demand for CNG grows, station capacity can be increased and new stations added, said Tourmaline. Also, the sites could in the future be converted to renewable natural gas – a product derived from decomposing organic matter. 

Diesel and CNG engines both use the process of internal combustion. 

However, CNG trucks don’t require the tall exhaust pipes used to expel fumes on diesel trucks. Another difference is CNG trucks have larger – high pressure – fuel tanks. As CNG has lower energy content per litre than diesel, more fuel volume is needed to achieve a reasonable operating range. 

The Mullen Group, one of North America’s largest logistics companies, will operate a fleet of CNG trucks across the station network. The company reports good reliability and fuel economy with its growing use of CNG. 

“We have already made a significant investment in CNG trucks and are extremely confident this technology will play a huge role in decarbonizing our industry,” said Murray Mullen, president of the Mullen Group.  

Clean Energy owns, operates and supplies hundreds of fueling stations across North America. The Tourmaline partnership will be its first “concerted effort” to build a Canadian network.  

“We think that’s just the beginning,” said Andrew Littlefair, CEO of Clean Energy. “Over time, we will begin to blend in renewable natural gas.” 

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