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CANADA MUST REVIVE A “PIPELINE WEST” – Indigenous Ownership and Investment in Energy Projects are Critical to Canada’s Oil Customer Diversification

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From EnergyNow.Ca

By Maureen McCall

Interesting events renewed discussions around pipeline projects when Alberta Premier, Daniel Smith made social media comments on Jan 21.2025 that Canada should have more nation-building projects and revive Northern Gateway.

It inspired an immediate comment from the President of the Union of BC Indian Chiefs, Grand Chief Stewart Phillip expressing interest in reviving the project.  “If we don’t build that kind of infrastructure, Trump will,” Phillip said. “And there won’t be any consideration for the environment, for the rule of law… I think we can do better.”

The next day, Chief Phillip retracted the comment leaving questions about the 180-degree pivot.

Some proponents of Indigenous development, like Calvin Helin, a member of the Tsimshian Nation and Principal at INDsight Advisers, a lawyer who specializes in commercial and Indigenous law and best-selling author, thought the event raised questions about influence.

Environmental groups have infiltrated some Indigenous organizations,” Helin said in an interview. “They managed to support a government that championed their agendas, particularly agendas involving Alberta – objectives like the coastal pipeline ban and changes to the regulatory approval system. In this era of Trump, all they’ve managed to do is to weaken Canada’s position.”

Helin stressed that in 2025, the energy industry clearly understands the mandate to deal seriously with Indigenous interests, with Indigenous leaders coming forward to support natural resource development while respecting the environment.  He suggested that Indigenous inclusion and recognition at the outset is essential for energy projects in 2025 and beyond.

Back in 2018-2019, Helin proposed the Eagle Spirit Corridor a $50 -billion First Nations majority-owned Canadian four pipeline corridor after the Northern Gateway Pipeline was under consideration.

Helin had consulted early with Indigenous groups and proposed a robust natural resource corridor from Bruderheim, AB to Grassy Point, BC. The project involved the support of 32 First Nations from the outset. A variety of shared services were proposed to make the corridor more economical than a pipeline. Helin expected the project would create tens of thousands of jobs over the long term, as well as generate tax revenue and royalties, but it was killed by the federal government’s Bill C-48 tanker ban which stopped companies from using terminals along BC’s north coast to ship oil. The project was ultimately abandoned.

The Enbridge Northern Gateway Pipeline project for a twin pipeline from Bruderheim, AB, to Kitimat, BC, was also stopped by Bill C-48. Both Eagle Spirit and Northern Gateway chose the north BC coast for transportation to Asian markets for the deeper waters that could accommodate larger-capacity crude oil tankers.

The routes of the Eagle Spirit and Northern Gateway pipelines/corridors are quite similar with Eagle Spirit’s route extending a bit farther north in the final leg, as in the maps below.

 

 

 

Recent threats of tariffs on Canadian imports made by U.S. President Trump have stimulated calls to revive pipeline projects to tidewater, including Northern Gateway.

In direct reference to Northern Gateway, Enbridge CEO Greg Ebel has stated to media that Canada would have to designate major pipeline projects as legally required “in the national interest” before companies will consider investing again.

After the cancellation of Northern Gateway, Dale Swampy,the Indigenous leader who helped to establish the Northern Gateway Aboriginal Equity Partners group (AEP), formed the National Coalition of Chiefs(NCC), a group of pro-development First Nation Chiefs who advocate for the development of oil and gas resources in their communities.

Dale Swampy, President of the NCC says it still makes good sense to get a pipeline devoted to bitumen to the West Coast and that Canada has been “putting all its eggs in one basket” for 50 years and has been selling to just one customer  while “everybody else in the oil industry, including the U.S., is getting into the global competitive market.”

The Canadian Energy Centre reports that the oil and gas industry is not going into decline over the next decade and in fact, the demand for oil and gas in emerging and developing economies will remain robust through 2050. In light of the multiple effects of U.S. tariffs, Canadian pipelines to tidewater are seen as urgent. Swampy advocates for policy change and the revival of the Northern Gateway project powered by Indigenous equity investment.

“First, we have got to get rid of the oil tanker ban (C-48),” Swampy said.  “We’ve got to get more fluid regulatory processes so that we can get projects built in a reasonable timeline so that it doesn’t cost us billions more, waiting for the regular regulatory process to be complete- like TMX. You’ve also got to get the proponents back to the table. We had 31 of the 40 communities already signed on last time. I believe that we can get them signed on again.”

He continues to work with industry to develop an Indigenous-led bitumen pipeline project to the west coast. “We can get this project built if it’s led by First Nations.”

He says other Indigenous leaders are starting to realize the benefits of cooperating with natural resource development, whether it’s mining or the BC LNG projects that he says are now more widely accepted by First Nations.

Stephen Buffalo, President and CEO of the Indian Resource Council of Canada (IRC) agrees.

“I talk about ripple effects,” Buffalo said. “When Jason Kenney was Premier of Alberta, and the Trans Mountain expansion was a big discussion, he wanted to ensure that First Nations had an opportunity to be some sort of equity owner in projects. With the lack of investment capital, he created the Alberta Indigenous Opportunities Corporation with the province as a government backstop.”

Buffalo says the IRC has assembled just over $800 million in government backstop for First Nations to participate in projects which found strong proponents. And those projects are related to natural resource development. He acknowledged that some communities – some of them in BC, don’t see the big picture of what Indigenous Opportunities Corporations can allow them to do.

“You shouldn’t get in the way of others that really need access to healthcare and education and want to develop their communities. I always tell people, our land base, that we were given under the Indian Act, isn’t changing what our populations are. We need housing, and we need the infrastructure, which includes clean water.”

He sees the urgent need for First Nations to get out of poverty and alliances to develop natural resources are key.

“ When we landlock our resources, the U.S. economy seems to get better. Now we’re dependent on the U.S. We have to send our oil to the U.S. at a huge discount. Could or should we have Northern Gateway? Absolutely. Should we have Energy East? Absolutely. We’re importing oil, but we have it at home. Why do we need to import it?”

Buffalo agreed that project discussions and regulations have huge value, but the slowness of the discussion, including pushback from environmental groups that influence discussions is negatively impacting First Nation development. In the case of regulations like Bill C-59, the anti-greenwashing bill, Buffalo says it has silenced many of the members of the Indian Resource Council.

“I’m just looking after our communities,” Buffalo says, “the ones that are never written about, talked about, the ones that don’t have clean water, that don’t have adequate housing, that are lacking education foundations, that are lacking good health care.  When government regulatory bodies are making decisions, they’re making decisions for those people that they don’t ever see or ever talk to.”

My discussions with Calvin Helin, Stephen Buffalo and Dale Swampy resulted in a few policy suggestions for 2025 and beyond.

  1. Repeal Bill C- 69 – It not only blocks all pipelines but stops mines, refineries, export plants and other energy infrastructure that First Nations want to invest in. C-69 is unconstitutional- as ruled on October 13.2023 by Canada’s top court.
  2. Cut Taxes in Response to U.S. Tariffs– Tax cuts on investment and energy can neutralize the cost of the tariffs with lower taxes and incentivize investment in Canadian projects. Eliminate the Carbon Tax- Carbon tax elimination has been popular with First Nation leaders who have stated the tax has put us at a strategic disadvantage to other countries.
  3. Repeal Bill C-59, the anti-green-washing bill, which according to Stephen Buffalo has silenced many of the members of the Indian Resource Council and Bill C-48 – the Tanker Ban.
  4. Greenlight LNG Plants and related infrastructure– Canada sells gas exports uniquely to the U.S. There is a strong business case for sales to Asian and European markets. In a recent Canadian Energy Ventures webcast it was revealed that Natural Gas is sold as LNG to Europe at 16X the price Canada sells its gas to the U.S. First Nations are successfully involved in Woodfibre LNG, Cedar LNG and Ksi Lisims LNG in BC.
  5. Cut Regulatory Delay & Speed Up Approvals – Delay undermines investor confidence that projects can be completed in reasonable timelines.
  6. Reconciliation– Issue clear guidelines on what constitutes meaningful consultation. Industry can treat Indigenous peoples as partners and continue to advance economic reconciliation, including equity partnerships.

Maureen McCall is an energy professional who writes on issues affecting the energy industry.

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Higher carbon taxes in pipeline MOU are a bad deal for taxpayers

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By Franco Terrazzano

The Canadian Taxpayers Federation is criticizing the Memorandum of Understanding between the federal and Alberta governments for including higher carbon taxes.

“Hidden carbon taxes will make it harder for Canadian businesses to compete and will push Canadian entrepreneurs to shift production south of the border,” said Franco Terrazzano, CTF Federal Director. “Politicians should not be forcing carbon taxes on Canadians with the hope that maybe one day we will get a major project built.

“Politicians should be scrapping all carbon taxes.”

The federal and Alberta governments released a memorandum of understanding. It includes an agreement that the industrial carbon tax “will ramp up to a minimum effective credit price of $130/tonne.”

“It means more than a six times increase in the industrial price on carbon,” Prime Minister Mark Carney said while speaking to the press today.

Carney previously said that by “changing the carbon tax … We are making the large companies pay for everybody.”

Leger poll shows 70 per cent of Canadians believe businesses pass most or some of the cost of the industrial carbon tax on to consumers. Meanwhile, just nine per cent believe businesses pay most of the cost.

“It doesn’t matter what politicians label their carbon taxes, all carbon taxes make life more expensive and don’t work,” Terrazzano said. “Carbon taxes on refineries make gas more expensive, carbon taxes on utilities make home heating more expensive and carbon taxes on fertilizer plants increase costs for farmers and that makes groceries more expensive.

“The hidden carbon tax on business is the worst of all worlds: Higher prices and fewer Canadian jobs.”

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Man overboard as HMCS Carney lists to the right

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Steven Guilbeault, Heritage Minister and Quebec lieutenant, leaves cabinet this week with his chief of staff, Ann-Clara Vaillancourt. He resigned on Thursday.

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John Ivison's avatar  Fly Straight By John Ivison

Steven Guilbeault’s resignation will help end a decade of stagnation and lost investment.

Steven Guilbeault’s resignation will come as no surprise to Mark Carney – save, perhaps, for the fact that it took so long.

The former environment minister quit on Thursday evening, after the prime minister unveiled his memorandum of understanding with Alberta premier, Danielle Smith. That deal is aimed at creating the conditions to build an oil pipeline to the West Coast and encouraging new investment in the province’s natural gas electricity generation sector. In doing so, Carney cancelled the oil and gas emissions cap and the clean electricity regulations that Guilbeault had been instrumental in constructing and imposing.

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The former environmental activist couldn’t accept the continued expansion of fossil fuel production and so walked away after six years in cabinet.

In his resignation statement, he said he strongly opposes the MOU with Alberta because it was signed without consultation with the province of British Columbia and First Nations.

He said removing the moratorium on oil tankers off the West Coast would increase the risk of accidents and suspending clean electricity regulations, which blocked new gas generation, will result in an “upwards emissions trajectory”.

In particular, he was upset about the expansion of federal tax credits to encourage enhanced oil recovery, a carbon storage technology that captures carbon dioxide from industrial emitters and injects it back underground. Guilbeault considered this a direct subsidy for oil production – a business he said he hoped the government was exiting.

In a Twitter post, I called Guilbeault “anti-Pathways” – that is, opposed to the giant carbon capture and storage development that Carney views as crucial to offsetting the building of a new pipeline.

One of Guilbeault’s defenders said he is not anti-Pathways, and that, in fact, he was part of the trifecta, along with Chrystia Freeland and Jonathan Wilkinson, who negotiated the details on the investment tax credit “that will pay 50 percent of the cost of construction to a bunch of rich oil companies”. To me, that showed Guilbeault’s (and his supporters) true colours. If he wasn’t anti-Pathways, he certainly wasn’t pro.

When he said he would back Carney’s leadership bid in January, I wrote that it was an endorsement the aspiring Liberal leader could do without.

The now-prime minister always had in his mind a plan to build, including fossil fuel production, offset by technology adoption and a stronger industrial carbon price in Alberta. Even then, he made clear he was prepared to be pragmatic in a time of crisis.

Guilbeault’s plan was to regulate the industry to death.

It was always going to end badly but, as Carney told me last winter, Guilbeault provided crucial support on the ground in Quebec and any politician’s first responsibility is to win.

Guilbeault should be respected for his deep convictions on climate change and his commitment to leaving a better world to our children.

But he should never have been allowed to dictate environmental policy in this country. He refused to view natural gas as a bridging fuel in the energy transition in a country that has reserves of a resource that will, at current production levels, last 300 years.

He made clear his lack of enthusiasm for small modular nuclear reactors and new road-building.

And he pushed an oil and gas emissions cap that he knew would hit production levels and further (if that were possible) alienate Western Canadians.

His departure – and that of Freeland – give Carney scope to pursue what he hopes is a transformative response to not only Donald Trump, but to federal policies that amounted to driving with the handbrake on. Carney has made his intent clear – to optimize Canada’s resource wealth, while attempting to minimize emissions.

Five years ago, Trudeau was nearly tarred and feathered during a visit to Calgary; Carney received two standing ovations in the same town yesterday.

Prime Minister Mark Carney and Alberta Premier Danielle Smith outline the terms of their Memorandum of Understanding.

For too many years under the Trudeau/Freeland duopoly the plan was to redistribute the pie. Now it is clearly about wealth creation.

In my National Post columns, I have been scathing about some of the things the Carney government has done, as is appropriate for someone whose prime directive is the public interest. The decisions to recognize a Palestinian state; apologize to Trump for the Ontario “Ronald Reagan” ad; announce a bunch of major projects that were so advanced they didn’t need to be fast-tracked; split spending into the confusing binary of “operating” or “capital”; and visit the United Arab Emirates on a trade mission in the midst of a genocide in Sudan that the Emiratis had helped to fund were all, to me, missteps.

But, so far, Carney has got the big things right. The budget and this MOU are auspicious moves aimed at ending a decade of stagnation and lost investment.

There is a new mood of anticipation in the country, summed up in the S&P/TSX index, which hit record highs this week on the back of energy and mining stocks. Canadian pension funds are taking another look at the domestic market, intrigued by the prospect of investing in the potential privatization of airports, for example.

Canada is feeling better. There has been a shift in the mindset from saying no to everything to being open to removing barriers that stop the private sector from investing.

Success and prosperity are not guaranteed. But stagnation need not be either.

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