The recent approval of the first compressed natural gas facility in the Northwest Territories is bringing energy security one step closer to remote and Indigenous communities in Canada’s north. 

The Inuvialuit Energy Security Project (IESP), owned by the Inuvialuit Regional Corp. , will be located 16 kilometres south of Tuktoyaktuk. The project, recently approved by the Canadian Energy Regulator, will convert natural gas into compressed natural gas (CNG), propane, and diesel for the Inuvialuit Settlement region. 

“The whole project is for the purpose of addressing the energy security issue that many northerners face, but particularly northerners that are at the end of a very long road,” said Inuvialuit Petroleum Corporation special advisor Kate Darling. 

The natural gas will be supplied by the Tuk M-18 well, which is also owned by the Inuvialuit, and transported to local customers for power, heat, and fuel. 

Currently, the region is serviced by the Inuvik Gas Project (natural gas from two wells at the Ikhil reservoir, 50 kilometres northwest of Inuvik), and by truck from the south in B.C. The Ikhil wells’ reserves are now critically low, which led to the push for the IESP. The Tuk M-18, however, is estimated to have more than 100 years’ worth of reserves. 

 About 200,000 people in Canada have no connection to an energy grid or natural gas distribution systems. This includes nearly 100,000 people in the northern territories. 

 In the Northwest Territories, refined petroleum products like diesel make up 74 per cent of end-use demand, brought in by trucks. In Inuvialuit’s case, that’s a 5,000-kilometre round trip including a ferry ride. In the past, Inuvialuit has faced potential operation disruption of the ferry service, which put the community in an emergency fuel situation. 

“[The IESP] could provide long-term energy to the communities in the region, as well as reducing greenhouse gas emissions, creating long-term employment,” said Duane Ningaqsiq Smith, chair of the Inuvialuit Regional Corporation. 

“It represents an Inuvialuit-led solution that takes into account the preservation of our values, advances participation in the northern and national economy, all while reducing emissions and helping preserve our local environment.” 

In addition to providing energy security for remote communities, the IESP will have a significant positive impact on emissions reduction. It is estimated it will have a net reduction of around 40,000 tonnes of emissions per year, equivalent to the yearly emissions of 9,520 cars. 

The project is also expected to support 25 full-time jobs and a further 35 full-time jobs within the local community. 

“All in all … the M-18 will really help not just the surrounding communities of Tuk, but create a lot of jobs for locals, which is very good,” said Ryan Yakeleya, a Tuktoyaktuk councillor. 

The IESP has already injected over $20 million into local businesses with over 70 Inuvialuit and Gwich’in peoples employed to date, according to the latest project update. 

“IPC is committed to developing the IESP and ensuring that as much of the economic benefit and employment opportunities are offered to Inuvialuit,” said Duane Ningaqsiq Smith, IRC Chair and CEO. 

The project is expected to begin producing and delivering gas to consumers by the end of 2025. 

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The following summary facts and data were drawn from 30 Fact Sheets and Research Briefs and various Research Snapshots that the Canadian Energy Centre released in 2023. For sources and methodology and for additional data and information, the original reports are available at the research portal on the Canadian Energy Centre website: canadianenergycentre.ca.

Environment

1.

Canada’s share of Global CO2 emissions is dropping

Since the Kyoto Summit in 1997, Canada’s share of the world’s CO2 emissions has fallen from 2.2 per cent to 1.6 per cent. Canada’s share of world CO2 emissions decreased by 25 per cent from the Kyoto climate summit to the recent Dubai climate summit.

Source: CEC Research, Calculation from Various Database (2023)

2.

Canadian natural gas is getting cleaner

Emissions intensity is the emission rate of a given pollutant relative to the intensity of a specific activity or industrial production process. Emissions intensity is determined by dividing the number of absolute emissions by some unit of output, such as GDP, energy used, population, or barrel of oil produced. Between 2010 and 2021, the CO2 emissions intensity of Canadian natural gas production fell from 63.5 kilograms CO2e per barrel of oil equivalent to 44.5 kilograms CO2e per barrel of oil equivalent, a decline of nearly 30 per cent.

Source: Derived from Rystad Energy

3.

Canadian oil sands production is getting cleaner

Between 2000 and 2021, the emissions intensity of the oil sands subsector fell from 111.8 kilograms CO2e per barrel to just under 79.3 kilograms CO2e per barrel, a decline of over 29 per cent. As GHG emissions intensity in the upstream oil sector continues to decline and because Canada’s ESG performance remains highly rated, Canadian oil has the potential to become the barrel of choice on the world stage.

Source: Derived from Rystad Energy

4.

Canada’s oil and gas sector is doing its part to reduce methane emissions

Gas flaring is the burning off of the natural gas that is generated in the process of oil extraction and production. It is a significant source of greenhouse gas emissions (GHGs). In 2022, 138,549 million cubic meters (m3) (or 139 billion cubic meters (bcm)) of flared gases were emitted worldwide, creating 350 million tonnes of CO2 emissions annually. At 945 million m3 in 2022, Canada was the eighth lowest flarer among the world’s top 30 oil and gas producers (23rd spot). Canada decreased its flaring emissions by 320 million m3 from its 2012 level of 1,264 million m3, a 25 per cent drop. In 2022, Canada contributed just 0.7 per cent of the global amount of gas flaring despite being the world’s fourth largest oil producer.

Source: World Bank (undated)

5.

Environmental spending by Canada’s oil and gas sector remains high

Canadian businesses spent $28.6 billion on environmental protection between 2018 and 2020. When capital and operating expenses on environmental protection are combined, out of that $28.6 billion the oil and gas sector spent $9.4 billion, or nearly 33 per cent. In 2020 alone, when capital and operating expenses on environmental protection are combined, the oil and gas sector spent $2.7 billion, or 27 per cent of all Canadian business spending on the environment that year.

Source: Derived from Statistics Canada, Table 38-10-0130-01

6.

Alberta among top provincial spenders on environmental protection

Industries are not alone in spending money on environmental protection; provincial governments do as well. Total provincial government spending on environmental protection between 2008 and 2021 was nearly $143.5 billion. In 2021, Alberta spent $22.6 billion or 15.7 per cent of all provincial expenditures on the environment, while its proportion of the national population was 11.6 per cent.

Source: Statistics Canada, Tables 10-10-0005-01 and 17-10-0005-01; and authors’ calculations

Economics of the Oil and Gas Sector

7.

Revenue contribution from the oil and gas sector: $578.7 billion between 2000 and 2021

The gross revenue contribution to federal, provincial, and municipal governments received exclusively from the oil and gas sector was $578.7 billion between 2000 and 2021, an average of $26.3 billion per year. The $578.7 billion figure includes $461.6 billion in direct provincial revenues, $99.6 billion in direct federal revenues, and $17.3 billion in indirect federal, provincial, and municipal taxes.

Sources: Statistics Canada, 2022 (a, b, c, d), Statistics Canada 2023 (a,b), and CAPP, 2022

8.

Projected government revenues from Canada’s oil sands sector: US$231 billion from 2023 to 2032

Government revenues from Canada’s oil sands sector (which includes provincial royalties and federal and provincial corporate taxes) are expected to rise from US$17.1 billion in 2023 to US$28.7 billion in 2032—nearly US$231 billion cumulatively—assuming the price of oil is a flat US$80 per barrel. Both projections would be about 20 per cent more in Canadian dollars at the current exchange rate.

Source: Derived from Rystad Energy

9.

Projected capex from Canadian oil sands sector: nearly US$113 billion over the next decade

Capex from the Canadian oil sands sector is projected to reach US$112.7 billion over the next decade. Assuming a flat US$80 per barrel for the price of oil, oil sands sector capex is expected to rise from US$10.1 billion in 2023 to US$14.2 billion in 2032. Those projections would be about 20 per cent more in Canadian dollars at the current exchange rate.

Source: Derived from Rystad Energy

10.

Canadian overall upstream oil sector supply costs have declined over 35% since 2015

The cost of supply for the Canadian upstream oil sector is the minimum constant dollar price needed to recover all capital expenditures, operating costs, royalties, taxes, and earn a specified return on investment. Supply costs indicate whether the upstream oil sector is economically viable.

Supply costs within Canada’s upstream oil sector declined significantly between 2015 and 2022. At the end of 2015, the Canadian upstream oil sector’s weighted average breakeven price was nearly US$76.00 per barrel of Brent. By the end of 2022, that weighted average breakeven price was US$49.09 per barrel of Brent, a decline of US$26.91 per barrel, or over 35 per cent since 2015. This number incorporates different phases of oil production including producing, under development, and discovery.

Source: Derived from Rystad Energy

11.

Breakeven costs in Canadian natural gas sector fifth lowest in the world

The Canadian natural gas sector had a weighted average breakeven gas price of US$2.31 per thousand cubic feet (mcf) in 2022, fifth lowest among major natural gas producing countries. Only in Saudi Arabia (US$1.09 per mcf), Iran (US$1.39 per mcf), Qatar (US$1.93 per mcf), and the United States (US$2.22 per mcf) was the breakeven gas price lower. The weighted average breakeven costs for Canada‘s natural gas sector in 2022 were lower than in Russia, Norway, Algeria, China, and Australia.

Source: Derived from Rystad Energy

12.

Natural gas prices have skyrocketed

Natural gas prices have skyrocketed around the world in the last two years. In 2021, the price of natural gas in Asia was US$18.60 per million British thermal units (mmbtu) compared to US$4.40 per mmbtu in 2020—an increase of 323 per cent in just one year. By comparison, in 2021 natural gas sold for US$2.80 per mmbtu on Alberta’s AECO-C trading hub; in Asia it was US$15.88 per mmbtu more (or 564 per cent higher). Between 2019 and 2021, the price gap between Henry Hub in the US and AECO-C natural gas fluctuated from a high of 98 per cent in 2019 to a low of 26 per cent in 2020. In 2021, U.S. natural gas sold for US$3.84 per mmbtu, 40 per cent higher than the US$2.75 per mmbtu average price for AECO-C natural gas that year.

Sources: BP Statistical Review of World Energy and International Monetary Fund

13.

Projected government revenues from the Canadian natural gas sector: over US$227 billion through 2050

Government revenues from the Canadian natural gas sector are projected to reach over US$227 billion through 2050. Under a Henry Hub price for natural gas of US$3.00 per thousand cubic feet (kcf), government revenues from the country’s natural gas sector are expected to rise from US$1.4 billion in 2023 to US$3.4 billion in 2050. Should the Henry Hub price reach US$4.00 per kcf, government revenues from the country’s natural gas sector would be projected to rise from US$2.0 billion in 2023 to US$10.0 billion in 2050.

Source: Derived from Rystad Energy

14.

Small business plays a key role in the oil and gas sector

Small business plays a key job creation role in Canada’s economy. Statistics Canada defines small businesses as those with between one and 99 paid employees. Medium-size enterprises are those with 100 to 499 employees, while large enterprises have 500 or more employees. In 2022, of the oil and gas firms in Canada, 96.0 per cent were small, 3.5 per cent were medium-sized, and 0.6 per cent were large companies.

With the exception of construction, the oil and gas sector in Canada has a higher proportion of small businesses than other major industries. As of 2022, 96.0 per cent of all oil and gas energy firms had between 1 and 99 employees compared with 93.2 per cent in manufacturing, 89.6 per cent in utilities, and 99.0 per cent in the construction sector. The all-industry average is 98.0 per cent.

Source: Authors’ calculation based on Statistics Canada Table 33-10-0661-01

15.

Canada’s oil and gas sector has an impact on key industries across the Canadian economy

In 2019, the activities of the Canadian oil and gas sector were indirectly responsible for significant portions of the GDP created by other key industries across Canada. The sector’s activities generated $100.9 million in GDP in the food and beverage merchant wholesalers industry that year and nearly $4.1 billion in GDP in architectural, engineering, and related services. In 2019, the top five industries whose GDP was most affected by their association with Canada’s oil and gas sector included:

• Architectural, engineering, and related services: $4.1 billion
• Machinery, equipment, and supplies merchant wholesalers: $3.4 billion
• Banking and other depository credit intermediation: $2.1 billion
• Computer systems design and related services: $1.7 billion
• Electrical power generation, transmission, and distribution: $1.5 billion

Source: Statistics Canada

16.

Employment and wages in the oil and gas sector remain high

In 2021, the oil and gas sector directly employed 147,371 Canadians. The number of direct jobs in the sector rose from 158,483 in 2009 to 185,393 in 2014, then fell to 134,939 in 2016, the result of the sharp decline in energy prices, before rising to 160,379 in 2019 as energy prices gradually recovered. The onslaught of COVID-19 in 2020 saw oil and gas sector jobs fall back to 135,475, before recovering to 147,371 in 2021. The average salary of a worker in the Canadian oil and gas sector in 2021 was $133,293. The average salary for a worker in the sector had risen from $103,448 in 2009 to $133,776 in 2015, before leveling off to $129,716 in 2019 due to the energy price slump. However, between 2009 and 2021, the average annual wage of a worker in the Canadian oil and gas sector increased by nearly 29 per cent.

Source: Statistics Canada

Social and Governance

17.

Women’s employment in Canada’s oil and gas sector is recovering

The number of females employed in the oil and gas sector reached a high of 42,440 in 2013, dipping to 30,285 in 2020 due to COVID-19, and then recovering somewhat to 33,068 in 2021. Between 2009 and 2021, the average wage for a female worker in the Canadian oil and gas industry increased by over 53 per cent.

Source: Statistics Canada

18.

Diversity increasing in the oil and gas sector

Between 2009 and 2021, workers in the Canada’s oil and gas sector who identified as Indigenous increased by nearly 17 per cent. Between 2009 and 2021, the average salary of an Indigenous person employed in Canada’s oil and gas sector increased by over 39 per cent.

Source: Statistics Canada

19.

More new Canadians working in the oil and gas sector over the long term

In 2021, 24,931 immigrants were directly employed in the Canadian oil and gas sector. The number of immigrants employed in the oil and gas industry reached 28,469 by 2014, declining to 21,622 in 2016 before recovering to 26,569 in 2019. Between 2009 and 2021, immigrant employment in the Canadian oil and gas sector increased by over 9 per cent. Between 2009 and 2021, the average wage and salary of an immigrant employed in the Canadian oil and gas sector increased by nearly 25 per cent.

Source: Statistics Canada

Carbon Capture, Utilization and Storage (CCUS)

20.

Carbon Capture, Utilization and Storage (CCUS) growing across the world

At the end of 2022, there were 65 commercial carbon capture, utilization and storage (CCUS) projects in operation globally capable of capturing nearly 41 million tonnes per annum (mtpa) of CO2 across various industries, including the oil and gas sector. There are another 478 projects in various stages of development around the world that will be capable of capturing roughly another 559 mtpa of CO2. These projects are in various stages of development: some are at the feasibility stage while others are in the concept and construction phases. If all projects move ahead as scheduled, by 2030 it is estimated that nearly 500 CCUS projects could be operating worldwide, having the ability to capture 623.0 mtpa of CO2. In fact,  between 2023 and 2030, global carbon capture capacity could grow from 43.5 mtpa to 623.0 mtpa, an increase of over 1,332 per cent.

Source: Derived from Rystad Energy

21.

Projected Carbon Capture, Utilization and Storage (CCUS) in Canada has a bright future

Global carbon capture capacity and worldwide spending trends to date underline the fact that the future is bright for Canadian investments in CCUS. Assuming that appropriate government policies and regulations are put in place, Canada can expect to see further project announcements and increased investment in the technology. Canada will likely emerge as a CCUS heavyweight given the prevailing policy environment and the existential need for oil sands players to decarbonize. Rystad Energy estimates that Canada alone could account for around 20 per cent of cumulative carbon capture demand between 2023 and 2030.

Source: Derived from Rystad Energy

Nuclear and Renewables

22.

Nuclear energy a stable source of electricity production in Canada

Nuclear power plants have been producing electricity in Canada since the 1960s. As of 2022, four nuclear power plants operate in Canada: three in Ontario and one in New Brunswick. Canada’s share of nuclear electricity production has remained relatively stable over the past few decades. In 1990, nuclear energy accounted for about 14.8 per cent of Canada’s electricity production; by 2021, this share had decreased only slightly to about 14.3 per cent.

Source: International Atomic Energy Agency

23.

Canada’s trade in renewable products is modest

Trade is an essential component of Canada’s economic activity, accounting for about two-thirds of the economy and employing 3.3 million people. In 2021, Canada imported solar panel products with a value of CAN$653 million and wind turbine products with a value of CAN$91 million. The value of the solar panels and wind turbines Canada imported was much higher than the CAN$260 million export value for both products.

Source: Government of Canada, Trade Data Online

Liquefied Natural Gas (LNG)

24.

Global LNG production projected to rise

Global liquefied natural gas (LNG) production is expected to reach nearly 720 million tonnes by 2035. That year the United States is projected to be the world’s leading LNG producer at 259 million tonnes, followed by Qatar at 121 million tonnes, and Australia at 78 million tonnes. Russian LNG supply was expected to grow to 54 million tonnes by 2035, but this is now in question, leaving opportunities for countries such as Canada to fill the void. In fact, by 2035, Canada could be the fifth largest LNG producer at nearly 33 million tonnes of LNG.

Source: Derived from Rystad Energy

25.

Canadian LNG exports could help reduce global emissions

Asia is a significant source of CO2 emissions. Canadian LNG exports can help in reducing emissions from the Asian energy mix. If Canada increases its LNG export capacity to Asia, by 2050 net global emissions could decline by 188 million tonnes of CO2 equivalent per year. That would have the annual impact of taking 41 million cars off the road.

CEC Research Briefs

Canadian Energy Centre (CEC) Research Briefs are contextual explanations of data as they relate to Canadian energy. They are statistical analyses released periodically to provide context on energy issues for investors, policymakers, and the public. The source of profiled data depends on the specific issue. This research brief is a compilation of previous Fact Sheets and Research Briefs released by the centre in 2023. Sources can be accessed in the previously released reports. All percentages in this report are calculated from the original data, which can run to multiple decimal points. They are not calculated using the rounded figures that may appear in charts and in the text, which are more reader friendly. Thus, calculations made from the rounded figures (and not the more precise source data) will differ from the more statistically precise percentages we arrive at using the original data sources.

About the author

This CEC Research Brief was compiled by Ven Venkatachalam, Director of Research at the Canadian Energy Centre.

Acknowledgements

The author and the Canadian Energy Centre would like to thank and acknowledge the assistance of an anonymous reviewer for the review of this paper.

Creative Commons Copyright

Research and data from the Canadian Energy Centre (CEC) is available for public usage under creative commons copyright terms with attribution to the CEC. Attribution and specific restrictions on usage including non-commercial use only and no changes to material should follow guidelines enunciated by Creative Commons here: Attribution-NonCommercial-NoDerivs CC BY-NC-ND.

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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It’s mid-2020 and there’s a woman with blue and purple hair operating an excavator on a steep slope near Kitimat, British Columbia. Wind carries whisps of cloud and rain through the trees. There’s a smell of cedar and mud. With care she moves tonnes of rock and dirt – clearing a path for a section of the Coastal GasLink pipeline, which begins in northeast B.C. near Dawson Creek and ends in Kitimat.  

Around noon, she turns off the machine, eats lunch and thinks about family in Newfoundland. 

“I absolutely love my job,” says veteran heavy equipment operator Kristy Robinson, reflecting on the excitement and challenges of working on Cable Crane Hill on Section 8 of Coastal GasLink.  

“It’s fun seeing the reaction on people’s faces when they see me in the machine and I’m not a big burley dude.” 

Kristy Robinson pauses for a photo while working on the Coastal GasLink pipeline in northwest B.C. Photo provided to the Canadian Energy Centre

With an elevation change of 700 metres, Cable Crane Hill is more of a mountain – one of many challenging sections along the 670-kilometre pipeline corridor that will deliver natural gas from B.C. for global exports.  

Heavy equipment and heavy lift helicopters battling difficult terrain were deployed to build a temporary gondola-like structure that is used to transport equipment, people, and materials up the slope.  

“I’ve got pictures of my machine above the clouds. It certainly showed me that I’m capable of doing more than I realized,” says Robinson, whose Mi’kmaq heritage strengthens her resolve to overcome challenges.  

“Sitting on the top of that hill and looking down, it’s a long way to the bottom.” 

Robinson is also a long way from her start as a heavy equipment operator student at the College of the North Atlantic in Newfoundland in 2005.  

“My family want me home,” she says. “But it’s hard to get a job as a female equipment operator back home and there is limited work.” 

The Cable Crane Hill crew became tight knit over the months, says Robinson, noting there were few visitors to the remote site. She began working for Coastal GasLink prime contractor Macro Spiecapag Joint Venture in 2019. She started at Cable Crane Hill in the summer of 2020 and left with the onset of winter for other work on the pipeline. 

“With the help of the people I worked with, we all built each other up and helped each other – it was a team effort,” she says. 

As the $14.5 billion Coastal GasLink nears completion, Robinson has pivoted to reclamation work on another section of the project near Burns Lake, B.C. She’s currently working for Michels Canada and is spending less time in heavy equipment after moving up the ranks. 

Meanwhile, pipe installation and mechanical work continues at Cable Crane Hill, part of a section that is now 95 per cent complete. The entire pipeline is 90 per cent constructed and expected to be complete by the end of this year. 

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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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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 prairie provinces have signed an agreement that could benefit energy trade with other countries. 

Alberta, Saskatchewan and Manitoba entered a memorandum of understanding in April to improve western Canada’s interconnected road, rail, air, energy and port corridors.  

The long-term goals include expanding the West’s export-based economy, strengthening the region’s global markets participation, and building relationships with international trading partners – several of which are calling on Canada to speed-up liquefied natural gas (LNG) development. 

“The perception of Canada’s trade infrastructure by customers abroad has plummeted,” said Carlo Dade, director of the Trade and Investment Centre at the Canada West Foundation, which worked closely with the provinces to support their efforts. 

Carlo Dade, director of the Trade and Investment Centre at the Canada West Foundation. Photo courtesy Canada West Foundation

Internationally, Canada dropped from a top 10 supplier a decade ago to rank number 32 in the World Economic Forum’s 2019 Global Competitiveness Report, he noted.   

“The decline in our global trade infrastructure stems from our inability to manage development of trade infrastructure. Our unwillingness to move LNG is added on top of this to give Canada two black eyes,” said Dade. 

Goods and services trade accounted for around 65 per cent of Canada’s GDP in 2020, according to the Government of Canada. 

Good reason to improve transportation corridors for even greater efficiency, said Dade.  

“Trade pays for health care, education and keeping the lights on,” he said.   

The agreement between the prairie provinces provides a new platform to advocate mutual interests at the federal level. 

The vision of building nationwide connected corridors to transport any number of commodities including oil, gas, hydrogen, forestry products, fish, and manufactured goods has been championed by many, including Indigenous business leader Chris Sankey. 

“This is good news for prairie provinces, and I’m hoping British Columbia will come on board,” said Sankey, CEO of Blackfish Enterprises and former elected councillor of the Lax Kw’alaams First Nation near Prince Rupert.  

“For us to start working together, I think it’s important that Indigenous people are at the table.” 

Indigenous communities are the solution when it comes to building economic activity in their territory, said Sankey, adding that Indigenous participation to improve transportation corridors creates an alignment that can de-risk projects. 

“I would say to our leaders, we need to start thinking globally and acting locally,” he said. 

Canada’s challenges delivering energy to international customers are raising questions about its ability to supply other commodities, said Dade.  

Canada has yet to deliver a single LNG export shipment, while the global LNG sector thrives. The U.S. has become one of the world’s largest LNG exporters. In 2022, Germany signed a 15-year LNG supply deal with Qatar after German chancellor Olaf Scholz ended a visit to Canada without a commitment on LNG supply. 

“We currently cannot have rational conversations about moving energy in this country, partially because we have those conversations in isolation,” said Dade. “Each transport project, each sector, each bottleneck gets its own conversation. In a country with integrated supply and production chains where everything impacts everything else.” 

According to the latest industry outlook, global LNG demand is expected to exceed 700 million tonnes by 2040 from its 2022 level of 397 million tonnes. The growth is driven by emerging Asian economies seeking to curb emissions by reducing reliance on coal-fired power. 

Canadian LNG is expected to have among the world’s lowest emissions per tonne due to a colder climate, lower methane emissions from natural gas production, and the use of hydroelectricity to power operations. 

In February, representatives from Japan and South Korea stressed that Canada should accelerate LNG development, saying “the world is waiting.”  

“Canada can and should play a very important role to support the energy situation not only in Japan and South Korea, but the world,” said Yamanouchi Kanji, Japan’s ambassador to Canada in a webinar hosted by the Canada West Foundation. 

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