Canadian Energy Centre
Why nation-building Canadian resource projects need Indigenous ownership to succeed
Chief Greg Desjarlais of Frog Lake First Nation signs an agreement in September 2022 whereby 23 First Nations and Métis communities in Alberta will acquire an 11.57 per cent ownership interest in seven Enbridge-operated oil sands pipelines for approximately $1 billion. Photo courtesy Enbridge
From the Canadian Energy Centre
U.S. trade dispute converging with rising tide of Indigenous equity
A consensus is forming in Canada that Indigenous ownership will be key to large-scale, nation-building projects like oil and gas pipelines to diversify exports beyond the United States.
“Indigenous ownership benefits projects by making them more likely to happen and succeed,” said John Desjarlais, executive director of the Indigenous Resource Network.
“This is looked at as not just a means of reconciliation, a means of inclusion or a means of managing risk. I think we’re starting to realize this is really good business,” he said.
“It’s a completely different time than it was 10 years ago, even five years ago. Communities are much more informed, they’re much more engaged, they’re more able and ready to consider things like ownership and investment. That’s a very new thing at this scale.”
John Desjarlais, executive director of the Indigenous Resource Network in Bragg Creek, Alta. Photo by Dave Chidley for the Canadian Energy Centre
Canada’s ongoing trade dispute with the United States is converging with a rising tide of Indigenous ownership in resource projects.
“Canada is in a great position to lead, but we need policymakers to remove barriers in developing energy infrastructure. This means creating clear and predictable regulations and processes,” said Colin Gruending, Enbridge’s president of liquids pipelines.
“Indigenous involvement and investment in energy projects should be a major part of this strategy. We see great potential for deeper collaboration and support for government programs – like a more robust federal loan guarantee program – that help Indigenous communities participate in energy development.”
In a statement to the Canadian Energy Centre, the Alberta Indigenous Opportunities Corporation (AIOC) – which has backstopped more than 40 communities in energy project ownership agreements with a total value of over $725 million – highlighted the importance of seizing the moment:
“The time is now. Canada has a chance to rethink how we build and invest in infrastructure,” said AIOC CEO Chana Martineau.
“Indigenous partnerships are key to making true nation-building projects happen by ensuring critical infrastructure is built in a way that is competitive, inclusive and beneficial for all Canadians. Indigenous Nations are essential partners in the country’s economic future.”
Key to this will be provincial and federal programs such as loan guarantees to reduce the risk for Indigenous groups and industry participants.
“There are a number of instruments that would facilitate ownership that we’ve seen grow and develop…such as the loan guarantee programs, which provide affordable access to capital for communities to invest,” Desjarlais said.
Workers lay pipe during construction of the Trans Mountain pipeline expansion on farmland in Abbotsford, B.C. on Wednesday, May 3, 2023. CP Images photo
Outside Alberta, there are now Indigenous loan guarantee programs federally and in Saskatchewan. A program in British Columbia is in development.
The Indigenous Resource Network highlights a partnership between Enbridge and the Willow Lake Métis Nation that led to a land purchase of a nearby campground the band plans to turn into a tourist destination.
“Tourism provides an opportunity for Willow Lake to tell its story and the story of the Métis. That is as important to our elders as the economic considerations,” Willow Lake chief financial officer Michael Robert told the Canadian Energy Centre.
The AIOC reiterates the importance of Indigenous project ownership in a call to action for all parties:
“It is essential that Indigenous communities have access to large-scale capital to support this critical development. With the right financial tools, we can build a more resilient, self-sufficient and prosperous economy together. This cannot wait any longer.”
In an open letter to the leaders of all four federal political parties, the CEOs of 14 of Canada’s largest oil and gas producers and pipeline operators highlighted the need for the federal government to step up its participation in a changing public mood surrounding the construction of resource projects:
“The federal government needs to provide Indigenous loan guarantees at scale so industry may create infrastructure ownership opportunities to increase prosperity for communities and to ensure that Indigenous communities benefit from development,” they wrote.
For Desjarlais, it is critical that communities ultimately make their own decisions about resource project ownership.
“We absolutely have to respect that communities want to self-determine and choose how they want to invest, choose how they manage a lot of the risk and how they mitigate it. And, of course, how they pursue the rewards that come from major project investment,” he said.
Business
Canada’s future prosperity runs through the northwest coast
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.
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.”
Alberta
Emissions Reduction Alberta offering financial boost for the next transformative drilling idea
From the Canadian Energy Centre
$35-million Alberta challenge targets next-gen drilling opportunities
‘All transformative ideas are really eligible’
Forget the old image of a straight vertical oil and gas well.
In Western Canada, engineers now steer wells for kilometres underground with remarkable precision, tapping vast energy resources from a single spot on the surface.
The sector is continually evolving as operators pursue next-generation drilling technologies that lower costs while opening new opportunities and reducing environmental impacts.
But many promising innovations never reach the market because of high development costs and limited opportunities for real-world testing, according to Emissions Reduction Alberta (ERA).
That’s why ERA is launching the Drilling Technology Challenge, which will invest up to $35 million to advance new drilling and subsurface technologies.
“The focus isn’t just on drilling, it’s about building our future economy, helping reduce emissions, creating new industries and making sure we remain a responsible leader in energy development for decades to come,” said ERA CEO Justin Riemer.
And it’s not just about oil and gas. ERA says emerging technologies can unlock new resource opportunities such as geothermal energy, deep geological CO₂ storage and critical minerals extraction.
“Alberta’s wealth comes from our natural resources, most of which are extracted through drilling and other subsurface technologies,” said Gurpreet Lail, CEO of Enserva, which represents energy service companies.
ERA funding for the challenge will range from $250,000 to $8 million per project.
Eligible technologies include advanced drilling systems, downhole tools and sensors; AI-enabled automation and optimization; low-impact rigs and fluids; geothermal and critical mineral drilling applications; and supporting infrastructure like mobile labs and simulation platforms.
“All transformative ideas are really eligible for this call,” Riemer said, noting that AI-based technologies are likely to play a growing role.
“I think what we’re seeing is that the wells of the future are going to be guided by smart sensors and real-time data. You’re going to have a lot of AI-driven controls that help operators make instant decisions and avoid problems.”
Applications for the Drilling Technology Challenge close January 29, 2026.
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