Canadian Energy Centre
Indigenous communities shut out by B.C. tanker ban want another chance
From the Canadian Energy Centre
By Deborah Jaremko and Will Gibson
“Canada’s Indigenous communities need projects, not lawsuits that hold them up”
From the outset, projects must unite leadership from proponents, governments and affected First Nations
The head of the National Coalition of Chiefs (NCC) is calling for the repeal of the oil tanker ban on B.C.’s north coast as Canada seeks “nation-building” projects to strengthen economic independence.
With short shipping times to hungry Asian markets, ports like Prince Rupert or Kitimat offer a strong business case – but only if the tankers can dock.
“No proponent is going to look at investing in a pipeline to the north coast with that kind of legislation in place,” says NCC founder and CEO Dale Swampy.
Formed in 2016, the NCC is a group of pro-development First Nation leaders including some who were equity partners in the cancelled Northern Gateway pipeline from Edmonton to Kitimat.
Canada’s Indigenous communities need projects, not lawsuits that hold them up, he says.
Original map of the proposed Northern Gateway Pipeline, submitted to regulators as part of a preliminary information package in October 2005. Map courtesy Canada Energy Regulator
Northern Gateway and the tanker ban
The tanker ban and Northern Gateway are intrinsically linked.
The moratorium contributed to the loss of Indigenous ownership stakes and an estimated $2 billion in economic opportunity for First Nations and Métis communities.
“We have consistently spoken up against this legislation, which directly affects the ability of our communities to participate in developing resources,” Swampy says.
With the aim to diversify markets for Canadian oil by reaching customers in Asia, Enbridge announced Northern Gateway in 2004.
The project’s 7,800-page regulatory application to the National Energy Board (NEB) – including more than 1,600 pages specific to marine safety – followed in May 2010.
In December 2013, after extensive assessment and public hearings, including with Indigenous communities, a three-member Joint Review Panel from the NEB and the Canadian Environmental Assessment Agency recommended the project to go ahead.
In June 2014, the federal government approved Northern Gateway with 209 conditions, including a requirement to fulfill over 400 voluntary commitments, many tied to marine safety.
After receiving approval, Northern Gateway’s management team and the project’s Aboriginal Equity Partners proposed an increase in Indigenous ownership from 10 per cent to 33 per cent.
They also created a joint governance structure where the communities and the company would have an equal voice.
The modified project would also incorporate First Nations and Métis environmental stewardship and monitoring using traditional science.
Meanwhile, legal actions were underway by environmental groups and Indigenous communities outside the equity partners.
By December 2014, the Federal Court of Appeal had consolidated multiple cases challenging the project’s approval.
Blocking the Northern Gateway pipeline and enacting a moratorium on oil tanker traffic on B.C.’s north coast became cornerstones of the Liberal Party’s 2015 election platform.
Oil Tanker Moratorium Act legislated moratorium area, 2017. Map courtesy Transport Canada
In November 2015, just a week after being sworn in, former Prime Minister Justin Trudeau instructed his transport minister to “formalize” the ban, a major setback for Northern Gateway.
Five months later, in June 2016 the Federal Court of Appeal overturned the government’s approval for the project, ruling that Canada had failed to fulfill its constitutional duty to consult Indigenous communities.
In November 2016, Trudeau officially rejected Northern Gateway, devastating hopes for the bands that would have become equity partners.
“Thirty-one of the 40 First Nations and Métis communities who were located on Northern Gateway’s right-of-way supported the pipeline, but a couple of communities backed by environmental groups were able to stop the entire project,” Swampy says.
“That’s not fair or democratic.”
In May 2017, Bill C-48, also known as the Oil Tanker Moratorium Act, was formally introduced in the House of Commons.
Indigenous communities stripped of opportunity
At the time, Swampy told the Financial Post that the communities saw the decision to reject Northern Gateway as political and not acting in the best interests of Canadians.
“They weren’t asked about the financial effect, the lost employment,” he said.
The implications of the tanker ban go far beyond the West Coast, Indian Resources Council CEO Stephen Buffalo told the Standing Senate Committee on Transport and Communications in March 2019.
Buffalo joined Swampy and other Indigenous leaders to speak to the committee as part of its consideration of Bill C-48.
Representing more than 130 First Nations that produce or have the potential to produce oil and gas, he said community prosperity is closely tied to the sector.
“The industry is suffering greatly from the lack of pipeline access…We need access to new markets to obtain fair value for our oil resources,” Buffalo said.
“We are struggling with addictions and depression, and people are losing hope. If we are ever going to make faster progress on these issues, our First Nations communities need more own-source revenues to fund cultural programs, sports programs or health activities for our young people,” he said.
“We need more jobs available for our people. We need them to earn good wages — wages that can support their families. Right now, Bill C-48 and other policies threaten all of that for us.”
Buffalo questioned the necessity of the tanker ban.
“I think all First Nations would support development of strict regulations that protect the environment, but that’s different from arbitrarily stopping just Canadian oil tanker activity,” he said.
The Senate approved the tanker ban and it became law upon Royal Assent on June 21, 2019.
Shifting times and new pipelines
Six years and the threat of U.S. tariffs later, the view on Canadian oil pipelines — and, potentially, the tanker ban itself — is shifting.
Growing public support for pipelines in recent opinion polls has encouraged Swampy.
So, too, has the change in attitudes towards development by coastal First Nations that have experienced the benefits of working with industry.
“Many of the coastal First Nations in northwestern B.C. are either building or looking at building LNG facilities. They appreciate the fact prosperity can be gained by partnering on these projects,” he says.
The NCC wants to see that same opportunity for the communities that would have benefited from Northern Gateway, through a new oil pipeline proposal to either Kitimat or Prince Rupert.
“We are hoping providing some certainty with Indigenous consultation and participation will give proponents some certainty they have a willing partner,” Swampy says.
To avoid lawsuits that delay or cancel projects and drive developers out of Canada, Swampy says agreements must, from the outset, unite leadership from proponents, governments and affected First Nations.
“We hope governments hear our message: we want projects, not lawsuits,” he says.
“Communities don’t need a cheque or a handout. They need the opportunity to participate in a meaningful way.”
From the Canadian Energy Centre
Bigger project maintains decades-long marine safety record
The Trans Mountain system continues its decades-long record of zero marine spills, even as oil tanker traffic has surged more than 800 per cent since the pipeline’s expansion in May 2024.
The number of tankers calling at Trans Mountain’s Westridge Marine Terminal in the Port of Vancouver in one month now rivals the number that used to go through in one year.
A global trend toward safer tanker operations
Trans Mountain’s safe operations are part of a worldwide trend. Global oil tanker traffic is up, yet spills are down, according to the International Tanker Owners Pollution Federation, a London, UK-based nonprofit that provides data and response support.
Graph courtesy International Tanker Owners Pollution Federation
Transport Canada reports a 95 per cent drop in ship-source oil spills and spill volumes since the 1970s, driven by stronger ship design, improved response and better regulations.
“Tankers are now designed much more safely. They are double-hulled and compartmentalized to mitigate spills,” said Mike Lowry, spokesperson for the Western Canada Marine Response Corporation (WCMRC).
WCMRC: Ready to protect the West Coast
One of WCMRC’s new response vessels arrives in Barkley Sound. Photo courtesy Western Canada Marine Response Corporation
From eight marine bases including Vancouver and Prince Rupert, WCMRC stands at the ready to protect all 27,000 kilometres of Canada’s western coastline.
Lowry sees the corporation as similar to firefighters — training to respond to an event they hope they never have to see.
In September, it conducted a large-scale training exercise for a worst-case spill scenario. This included the KJ Gardner — Canada’s largest spill response vessel and a part of WCMRC’s fleet since 2024.
“It’s part of the work we do to make sure everybody is trained and prepared to use our assets just in case,” Lowry said.
Expanding capacity for Trans Mountain
The K.J. Gardner is the largest-ever spill response vessel in Canada. Photo courtesy Western Canada Marine Response Corporation
WCMRC’s fleet and capabilities were doubled with a $170-million expansion to support the Trans Mountain project.
Between 2012 and 2024, the company grew from 13 people and $12 million in assets to more than 200 people and $213 million in assets.
“About 80 per cent of our employees are mariners who work as deckhands, captains and marine engineers on our vessels,” Lowry said.
“Most of the incidents we respond to are small marine diesel spills — the last one was a fuel leak from a forest logging vessel near Nanaimo — so we have deployed our fleet in other ways.”
Tanker safety starts with strong rules and local expertise
Tanker loading at the Westridge Marine Terminal in the Port of Vancouver. Photo courtesy Trans Mountain Corporation
Speaking on the ARC Energy Ideas podcast, Trans Mountain CEO Mark Maki said tanker safety starts with strong regulations, including the use of local pilots to guide vessels into the harbour.
“On the Mississippi River, you have Mississippi River pilots because they know how the river behaves. Same thing would apply here in Vancouver Harbour. Tides are strong, so people who are familiar with the harbor and have years and decades of experience are making sure the ships go in and out safely,” Maki said.
“A high standard is applied to any ship that calls, and our facility has to meet very strict requirements. And we have rejected ships, just said, ‘Nope, that one doesn’t fit the bill.’ A ship calling on our facilities is very, very carefully looked at.”
Working with communities to protect sensitive areas
Beyond escorting ships and preparing for spills, WCMRC partners with coastal communities to map sensitive areas that need rapid protection including salmon streams, clam beds and culturally important sites like burial grounds.
“We want to empower communities and nations to be more prepared and involved,” Lowry said.
“They can help us identify and protect the areas that they value or view as sensitive by working with our mapping people to identify those areas in advance. If we know where those are ahead of time, we can develop a protection strategy for them.”
Prince Rupert Port Authority CEO Shaun Stevenson. Photo courtesy Prince Rupert Port Authority
From the Canadian Energy Centre
A strategic gateway to the world
Tucked into the north coast of B.C. is the deepest natural harbour in North America and the port with the shortest travel times to Asia.
With growing capacity for exports including agricultural products, lumber, plastic pellets, propane and butane, it’s no wonder the Port of Prince Rupert often comes up as a potential new global gateway for oil from Alberta, said CEO Shaun Stevenson.
Thanks to its location and natural advantages, the port can efficiently move a wide range of commodities, he said.
That could include oil, if not for the federal tanker ban in northern B.C.’s coastal waters.
The Port of Prince Rupert on the north coast of British Columbia. Photo courtesy Prince Rupert Port Authority
“Notwithstanding the moratorium that was put in place, when you look at the attributes of the Port of Prince Rupert, there’s arguably no safer place in Canada to do it,” Stevenson said.
“I think that speaks to the need to build trust and confidence that it can be done safely, with protection of environmental risks. You can’t talk about the economic opportunity before you address safety and environmental protection.”
Safe Transit at Prince Rupert
About a 16-hour drive from Vancouver, the Port of Prince Rupert’s terminals are one to two sailing days closer to Asia than other West Coast ports.
The entrance to the inner harbour is wider than the length of three Canadian football fields.
The water is 35 metres deep — about the height of a 10-storey building — compared to 22 metres at Los Angeles and 16 metres at Seattle.
Shipmasters spend two hours navigating into the port with local pilot guides, compared to four hours at Vancouver and eight at Seattle.
“We’ve got wide open, very simple shipping lanes. It’s not moving through complex navigational channels into the site,” Stevenson said.
A Port on the Rise
The Prince Rupert Port Authority says it has entered a new era of expansion, strengthening Canada’s economic security.
The port estimates it anchors about $60 billion of Canada’s annual global trade today. Even without adding oil exports, Stevenson said that figure could grow to $100 billion.
“We need better access to the huge and growing Asian market,” said Heather Exner-Pirot, director of energy, natural resources and environment at the Macdonald-Laurier Institute.
“Prince Rupert seems purpose-built for that.”
Roughly $3 billion in new infrastructure is already taking shape, including the $750 million rail-to-container CANXPORT transloading complex for bulk commodities like specialty agricultural products, lumber and plastic pellets.
The Ridley Island Propane Export Terminal, Canada’s first marine propane export terminal, started shipping in May 2019. Photo courtesy AltaGas Ltd.
Canadian Propane Goes Global
A centrepiece of new development is the $1.35-billion Ridley Energy Export Facility — the port’s third propane terminal since 2019.
“Prince Rupert is already emerging as a globally significant gateway for propane exports to Asia,” Exner-Pirot said.
Thanks to shipments from Prince Rupert, Canadian propane – primarily from Alberta – has gone global, no longer confined to U.S. markets.
More than 45 per cent of Canada’s propane exports now reach destinations outside the United States, according to the Canada Energy Regulator.
“Twenty-five per cent of Japan’s propane imports come through Prince Rupert, and just shy of 15 per cent of Korea’s imports. It’s created a lift on every barrel produced in Western Canada,” Stevenson said.
“When we look at natural gas liquids, propane and butane, we think there’s an opportunity for Canada via Prince Rupert becoming the trading benchmark for the Asia-Pacific region.”
That would give Canadian production an enduring competitive advantage when serving key markets in Asia, he said.
Deep Connection to Alberta
The Port of Prince Rupert has been a key export hub for Alberta commodities for more than four decades.
Through the Alberta Heritage Savings Trust Fund, the province invested $134 million — roughly half the total cost — to build the Prince Rupert Grain Terminal, which opened in 1985.
The largest grain terminal on the West Coast, it primarily handles wheat, barley, and canola from the prairies.
The Prince Rupert Grain Terminal. Photo courtesy Prince Rupert Port Authority
Today, the connection to Alberta remains strong.
In 2022, $3.8 billion worth of Alberta exports — mainly propane, agricultural products and wood pulp — were shipped through the Port of Prince Rupert, according to the province’s Ministry of Transportation and Economic Corridors.
In 2024, Alberta awarded a $250,000 grant to the Prince Rupert Port Authority to lead discussions on expanding transportation links with the province’s Industrial Heartland region near Edmonton.
Handling Some of the World’s Biggest Vessels
The Port of Prince Rupert could safely handle oil tankers, including Very Large Crude Carriers (VLCCs), Stevenson said.
“We would have the capacity both in water depth and access and egress to the port that could handle Aframax, Suezmax and even VLCCs,” he said.
“We don’t have terminal capacity to handle oil at this point, but there’s certainly terminal capacities within the port complex that could be either expanded or diversified in their capability.”
Market Access Lessons From TMX
Like propane, Canada’s oil exports have gained traction in Asia, thanks to the expanded Trans Mountain pipeline and the Westridge Marine Terminal near Vancouver — about 1,600 kilometres south of Prince Rupert, where there is no oil tanker ban.
The Trans Mountain expansion project included the largest expansion of ocean oil spill response in Canadian history, doubling capacity of the West Coast Marine Response Corporation.
The K.J. Gardner is the largest-ever spill response vessel in Canada. Photo courtesy Western Canada Marine Response Corporation
The Canada Energy Regulator (CER) reports that Canadian oil exports to Asia more than tripled after the expanded pipeline and terminal went into service in May 2024.
As a result, the price for Canadian oil has gone up.
The gap between Western Canadian Select (WCS) and West Texas Intermediate (WTI) has narrowed to about $12 per barrel this year, compared to $19 per barrel in 2023, according to GLJ Petroleum Consultants.
Each additional dollar earned per barrel adds about $280 million in annual government royalties and tax revenues, according to economist Peter Tertzakian.
The Road Ahead
There are likely several potential sites for a new West Coast oil terminal, Stevenson said.
“A pipeline is going to find its way to tidewater based upon the safest and most efficient route,” he said.
“The terminal part is relatively straightforward, whether it’s in Prince Rupert or somewhere else.”
Under Canada’s Marine Act, the Port of Prince Rupert’s mandate is to enable trade, Stevenson said.
“If Canada’s trade objectives include moving oil off the West Coast, we’re here to enable it, presuming that the project has a mandate,” he said.
“If we see the basis of a project like this, we would ensure that it’s done to the best possible standard.”
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