Alberta
ECONOMIC RECONCILIATION IS A PRIORITY AT ENBRIDGE
ECONOMIC RECONCILIATION IS A PRIORITY AT ENBRIDGE
Building and maintaining relationships with Indigenous nations and groups over the lifecycle of our assets is essential to Enbridge’s continued success as a leading North American energy delivery company. An important part of how we do business is to work with Indigenous communities to help increase their capacity to participate economically in our projects and operations. Economic engagement ranges from providing training and employment opportunities that build transferrable skills, to the procurement of goods and services from Indigenous businesses. To tap into Indigenous communities’ growing capacity and desire to participate in contracting and employment opportunities, Enbridge has adopted a supply chain process that requires prospective contractors to include detailed Socio-Economic Plans that outline how they will include local Indigenous communities and businesses in their work for Enbridge’s projects and operations. This approach exemplifies our desire to build long-term relationships which create value for both Indigenous communities and our business.
Enbridge has long recognized that hiring Indigenous businesses supports local employment, gives us the opportunity to understand available services and talent, and helps build trust and relationships. We also appreciate the important contribution that Indigenous businesses make each year to the overall economy.
In 2019, we marked a major milestone, surpassing $1 billion in Indigenous spending since 2011 across our Liquids Pipelines and Gas Transmission businesses. This includes direct spend with Indigenous businesses as well as subcontracting opportunities for Indigenous businesses, suppliers and wages paid to Indigenous workers from our contractors.
Our Line 3 pipeline replacement project (L3RP) is an excellent example of how our supply chain is delivering on our commitment to maximize Indigenous participation. This supports our efforts to advance economic reconciliation in accordance with the Truth and Reconciliation Commission’s Call to Action #92.
At $5.3 billion for the Canadian segment alone, the L3RP was the largest capital project in Enbridge’s history. It also represented our largest and most successful community engagement effort – including more than 150 Indigenous communities from as far as 300 kilometres from the pipeline right of way.
As of late September 2019, Indigenous spending on the L3RP totaled approximately $440 million for contracting and wages, while more than 1,100 Indigenous men and women were employed on project construction, representing approximately 20% of the overall workforce.
Indigenous monitors provided environmental and cultural perspective to the project construction team.
“The economic benefits flowing to Indigenous communities from Line 3 pipeline construction are no accident or happy coincidence,” says Enbridge’s Dave Lawson, Vice President of Major Projects. “Rather, they are the direct result of our comprehensive and proactive engagement program and the joint commitments between Enbridge and numerous Indigenous communities and groups.”
The leaders of several First Nations located along the Line 3 route note that “this economic stimulus benefited more than just the workers, it benefited the families and the Nations we represent.” They worked with Enbridge and “found ways to ensure environmental protections, and ways to secure tangible economic benefits and career development commitments for the indigenous people we represent. Enbridge listened and we believe this project has been a success for our people.”
Another community benefitting from the L3RP was the Manitoba Metis Federation (MMF). David Chartrand, President of the MMF says, “In order to work on a pipeline you have to have certification, so we got our people all ready and trained a year before the pipeline went in. We were ahead of the game.”
“I can honestly say,” he adds, “that this is one of the true success stories that we can probably talk about. Enbridge has got a blueprint for other companies if they want to use it.”
This focus on engagement and inclusion led to 58 cooperative project agreements with Enbridge, representing the participation of 95 Indigenous communities or groups.
“From the outset, we made a concerted effort to ensure Indigenous communities understood our project, specifically how they might participate and benefit economically,” explains Kim Brenneis, Director of Community and Indigenous Engagement. “I think the positive results we’ve seen speak to Enbridge’s strong commitment to inclusion as well as to building mutually-beneficial relationships with Indigenous nations.”
Beyond successful engagement, there are three major reasons for the strong Indigenous project participation and spending profile, explains Barry Horon, Director of Supply Chain Management for Projects.
“First, we worked with Indigenous communities to help create the capacity needed to participate in meaningful pipeline contracting and employment opportunities; second, Enbridge adopted a proactive supply chain process that, among other initiatives, required prospective contractors to include detailed Indigenous participation plans in their bids; and third, we implemented a labour strategy to enhance connections between Indigenous job seekers and our primary construction contractors through an online portal and the use of Indigenous labour brokers,” says Horon.
Indigenous men and women, such as Kara Pooyak of Sweetgrass First Nation, made up 20% of the Line 3 construction workforce.
Included in the Indigenous workforce were 27 construction monitor and nine liaison positions that provided both Indigenous perspectives and advice to the Line 3 project team. This helped to ensure that Enbridge’s environmental mitigation strategies – which were approved by the National Energy Board – were implemented during construction.
Another key component of the labour strategy was the now-completed Line 3 Pipeline 101 training-to-employment program. Over three years, more than 260 Indigenous men and women graduated from the program, many of whom have secured work on the L3RP.
Justin McKinney of Swan Lake First Nation is building a career in pipelining, thanks to training and mentorship he received during the Line 3 project.
Our experience with the L3RP led to an assessment of how Enbridge’s Indigenous engagement practices had evolved over the past few years. An outcome of this process was the introduction, in 2019, of our Indigenous Lifecycle Engagement Framework, which now guides our approach to building and sustaining long-term relationships across our business going forward, including for enhancing Indigenous economic participation in our projects and operation.
The framework was shared with several Indigenous nations in Canada. We are now incorporating their feedback into our planning and we will continue to seek to seek their input to ensure that our approach remains in step with their interests and goals.
Thanks to Todayville for helping us bring our members’ stories of collaboration and innovation to the public.
Click to read a foreward from JP Gladu, Chief Development and Relations Officer, Steel River Group; Former President and CEO, Canadian Council for Aboriginal Business.
JP Gladu, Chief Development and Relations Officer, Steel River Group; Former President & CEO, Canadian Council for Aboriginal Business
Click to read comments about this series from Jacob Irving, President of the Energy Council of Canada.
Jacob Irving, President of Energy Council of Canada
The Canadian Energy Compendium is an annual initiative by the Energy Council of Canada to provide an opportunity for cross-sectoral collaboration and discussion on current topics in Canada’s energy sector. The 2020 Canadian Energy Compendium: Innovations in Energy Efficiency is due to be released November 2020.
Click below to read more stories from Energy Council of Canada’s Compendium series.
PETER SUTHERLAND SR GENERATING STATION POWERS NORTHEAST ONTARIO
Pathways Alliance CEO Kendall Dilling is interviewed at the World Petroleum Congress in Calgary, Monday, Sept. 18, 2023.THE CANADIAN PRESS/Jeff McIntosh
From Resource Works
Carbon capture gives biggest bang for carbon tax buck CCS much cheaper than fuel switching: report
Canada’s climate change strategy is now joined at the hip to a pipeline. Two pipelines, actually — one for oil, one for carbon dioxide.
The MOU signed between Ottawa and Alberta two weeks ago ties a new oil pipeline to the Pathways Alliance, which includes what has been billed as the largest carbon capture proposal in the world.
One cannot proceed without the other. It’s quite possible neither will proceed.
The timing for multi-billion dollar carbon capture projects in general may be off, given the retreat we are now seeing from industry and government on decarbonization, especially in the U.S., our biggest energy customer and competitor.
But if the public, industry and our governments still think getting Canada’s GHG emissions down is a priority, decarbonizing Alberta oil, gas and heavy industry through CCS promises to be the most cost-effective technology approach.
New modelling by Clean Prosperity, a climate policy organization, finds large-scale carbon capture gets the biggest bang for the carbon tax buck.
Which makes sense. If oil and gas production in Alberta is Canada’s single largest emitter of CO2 and methane, it stands to reason that methane abatement and sequestering CO2 from oil and gas production is where the biggest gains are to be had.
A number of CCS projects are already in operation in Alberta, including Shell’s Quest project, which captures about 1 million tonnes of CO2 annually from the Scotford upgrader.
What is CO2 worth?
Clean Prosperity estimates industrial carbon pricing of $130 to $150 per tonne in Alberta and CCS could result in $90 billion in investment and 70 megatons (MT) annually of GHG abatement or sequestration. The lion’s share of that would come from CCS.
To put that in perspective, 70 MT is 10% of Canada’s total GHG emissions (694 MT).
The report cautions that these estimates are “hypothetical” and gives no timelines.
All of the main policy tools recommended by Clean Prosperity to achieve these GHG reductions are contained in the Ottawa-Alberta MOU.
One important policy in the MOU includes enhanced oil recovery (EOR), in which CO2 is injected into older conventional oil wells to increase output. While this increases oil production, it also sequesters large amounts of CO2.
Under Trudeau era policies, EOR was excluded from federal CCS tax credits. The MOU extends credits and other incentives to EOR, which improves the value proposition for carbon capture.
Under the MOU, Alberta agrees to raise its industrial carbon pricing from the current $95 per tonne to a minimum of $130 per tonne under its TIER system (Technology Innovation and Emission Reduction).
The biggest bang for the buck
Using a price of $130 to $150 per tonne, Clean Prosperity looked at two main pathways to GHG reductions: fuel switching in the power sector and CCS.
Fuel switching would involve replacing natural gas power generation with renewables, nuclear power, renewable natural gas or hydrogen.
“We calculated that fuel switching is more expensive,” Brendan Frank, director of policy and strategy for Clean Prosperity, told me.
Achieving the same GHG reductions through fuel switching would require industrial carbon prices of $300 to $1,000 per tonne, Frank said.
Clean Prosperity looked at five big sectoral emitters: oil and gas extraction, chemical manufacturing, pipeline transportation, petroleum refining, and cement manufacturing.
“We find that CCUS represents the largest opportunity for meaningful, cost-effective emissions reductions across five sectors,” the report states.
Fuel switching requires higher carbon prices than CCUS.
Measures like energy efficiency and methane abatement are included in Clean Prosperity’s calculations, but again CCS takes the biggest bite out of Alberta’s GHGs.
“Efficiency and (methane) abatement are a portion of it, but it’s a fairly small slice,” Frank said. “The overwhelming majority of it is in carbon capture.”
From left, Alberta Minister of Energy Marg McCuaig-Boyd, Shell Canada President Lorraine Mitchelmore, CEO of Royal Dutch Shell Ben van Beurden, Marathon Oil Executive Brian Maynard, Shell ER Manager, Stephen Velthuizen, and British High Commissioner to Canada Howard Drake open the valve to the Quest carbon capture and storage facility in Fort Saskatchewan Alta, on Friday November 6, 2015. Quest is designed to capture and safely store more than one million tonnes of CO2 each year an equivalent to the emissions from about 250,000 cars. THE CANADIAN PRESS/Jason Franson
Credit where credit is due
Setting an industrial carbon price is one thing. Putting it into effect through a workable carbon credit market is another.
“A high headline price is meaningless without higher credit prices,” the report states.
“TIER credit prices have declined steadily since 2023 and traded below $20 per tonne as of November 2025. With credit prices this low, the $95 per tonne headline price has a negligible effect on investment decisions and carbon markets will not drive CCUS deployment or fuel switching.”
Clean Prosperity recommends a kind of government-backstopped insurance mechanism guaranteeing carbon credit prices, which could otherwise be vulnerable to political and market vagaries.
Specifically, it recommends carbon contracts for difference (CCfD).
“A straight-forward way to think about it is insurance,” Frank explains.
Carbon credit prices are vulnerable to risks, including “stroke-of-pen risks,” in which governments change or cancel price schedules. There are also market risks.
CCfDs are contractual agreements between the private sector and government that guarantees a specific credit value over a specified time period.
“The private actor basically has insurance that the credits they’ll generate, as a result of making whatever low-carbon investment they’re after, will get a certain amount of revenue,” Frank said. “That certainty is enough to, in our view, unlock a lot of these projects.”
From the perspective of Canadian CCS equipment manufacturers like Vancouver’s Svante, there is one policy piece still missing from the MOU: eligibility for the Clean Technology Manufacturing (CTM) Investment tax credit.
“Carbon capture was left out of that,” said Svante co-founder Brett Henkel said.
Svante recently built a major manufacturing plant in Burnaby for its carbon capture filters and machines, with many of its prospective customers expected to be in the U.S.
The $20 billion Pathways project could be a huge boon for Canadian companies like Svante and Calgary’s Entropy. But there is fear Canadian CCS equipment manufacturers could be shut out of the project.
“If the oil sands companies put out for a bid all this equipment that’s needed, it is highly likely that a lot of that equipment is sourced outside of Canada, because the support for Canadian manufacturing is not there,” Henkel said.
Henkel hopes to see CCS manufacturing added to the eligibility for the CTM investment tax credit.
“To really build this eco-system in Canada and to support the Pathways Alliance project, we need that amendment to happen.”
Resource Works News
From the Canadian Energy Centre
Canada’s energy landscape changed significantly in 2025, with mounting U.S. economic pressures reinforcing the central role oil and gas can play in safeguarding the country’s independence.
Here are the Canadian Energy Centre’s top five most-viewed stories of the year.
5. Alberta’s massive oil and gas reserves keep growing – here’s why
The Northern Lights, aurora borealis, make an appearance over pumpjacks near Cremona, Alta., Thursday, Oct. 10, 2024. CP Images photo
Analysis commissioned this spring by the Alberta Energy Regulator increased the province’s natural gas reserves by more than 400 per cent, bumping Canada into the global top 10.
Even with record production, Alberta’s oil reserves – already fourth in the world – also increased by seven billion barrels.
According to McDaniel & Associates, which conducted the report, these reserves are likely to become increasingly important as global demand continues to rise and there is limited production growth from other sources, including the United States.
4. Canada’s pipeline builders ready to get to work
Photo courtesy Coastal GasLink
Canada could be on the cusp of a “golden age” for building major energy projects, said Kevin O’Donnell, executive director of the Mississauga, Ont.-based Pipe Line Contractors Association of Canada.
That eagerness is shared by the Edmonton-based Progressive Contractors Association of Canada (PCA), which launched a “Let’s Get Building” advocacy campaign urging all Canadian politicians to focus on getting major projects built.
“The sooner these nation-building projects get underway, the sooner Canadians reap the rewards through new trading partnerships, good jobs and a more stable economy,” said PCA chief executive Paul de Jong.
3. New Canadian oil and gas pipelines a $38 billion missed opportunity, says Montreal Economic Institute
Steel pipe in storage for the Trans Mountain Pipeline expansion in 2022. Photo courtesy Trans Mountain Corporation
In March, a report by the Montreal Economic Institute (MEI) underscored the economic opportunity of Canada building new pipeline export capacity.
MEI found that if the proposed Energy East and Gazoduq/GNL Quebec projects had been built, Canada would have been able to export $38 billion worth of oil and gas to non-U.S. destinations in 2024.
“We would be able to have more prosperity for Canada, more revenue for governments because they collect royalties that go to government programs,” said MEI senior policy analyst Gabriel Giguère.
“I believe everybody’s winning with these kinds of infrastructure projects.”
2. Keyera ‘Canadianizes’ natural gas liquids with $5.15 billion acquisition
Keyera Corp.’s natural gas liquids facilities in Fort Saskatchewan, Alta. Photo courtesy Keyera Corp.
In June, Keyera Corp. announced a $5.15 billion deal to acquire the majority of Plains American Pipelines LLP’s Canadian natural gas liquids (NGL) business, creating a cross-Canada NGL corridor that includes a storage hub in Sarnia, Ontario.
The acquisition will connect NGLs from the growing Montney and Duvernay plays in Alberta and B.C. to markets in central Canada and the eastern U.S. seaboard.
“Having a Canadian source for natural gas would be our preference,” said Sarnia mayor Mike Bradley.
“We see Keyera’s acquisition as strengthening our region as an energy hub.”
1. Explained: Why Canadian oil is so important to the United States
Enbridge’s Cheecham Terminal near Fort McMurray, Alberta is a key oil storage hub that moves light and heavy crude along the Enbridge network. Photo courtesy Enbridge
The United States has become the world’s largest oil producer, but its reliance on oil imports from Canada has never been higher.
Many refineries in the United States are specifically designed to process heavy oil, primarily in the U.S. Midwest and U.S. Gulf Coast.
According to the Alberta Petroleum Marketing Commission, the top five U.S. refineries running the most Alberta crude are:
- Marathon Petroleum, Robinson, Illinois (100% Alberta crude)
- Exxon Mobil, Joliet, Illinois (96% Alberta crude)
- CHS Inc., Laurel, Montana (95% Alberta crude)
- Phillips 66, Billings, Montana (92% Alberta crude)
- Citgo, Lemont, Illinois (78% Alberta crude)
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