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Energy

A federally guaranteed Indigenous loan program is reconciliation progress, but only if it respects Indigenous agency

Published

1 year ago

6 minute read

Roger Marten, right, Chief of Cold Lake First Nations, and Curtis Monias, centre, Chief of Heart Lake First Nation, speak after Cenovus CEO Alex Pourbaix announces an initiative focused on Indigenous communities. Photo from The Canadian Press.

From EnergyNow.ca

By Resource Works

Indigenous communities are increasingly becoming partners and owners in major natural resource projects across the country.

Resource Works has been excited to be involved in that movement through our annual Indigenous Partnerships Success Showcase, where we convene Indigenous experts to discuss Indigenous partnerships in major projects and across the Canadian economy.

Under a proposed federal program, even more, Indigenous communities could become partners and even owners in major natural resource projects, from oil to natural gas and liquified natural gas (LNG).

Back in 2010, the proposed Northern Gateway oil pipeline from Alberta to Kitimat offered a 10% equity stake in the project to participating Indigenous groups. Yet despite having significant support, there was also considerable Indigenous opposition to the project. Ultimately, the project was killed when Prime Minister Trudeau banned oil tanker traffic on BC’s northern coast.

Fast forward twelve years, and the Coastal GasLink (CGL) natural gas pipeline and the LNG Canada project are nearing completion. In fact, CGL finished laying the last of its pipe in the ground in October 2023, completing a truly herculean engineering task, the first energy pipeline to the coast in decades. Despite some Indigenous opposition, CGL has the support of the elected councils of all 20 First Nations along the route and has offered an option for First Nations to purchase a 10% equity share in the pipeline.

Coastal GasLink will feed LNG Canada, the largest private sector investment in Canadian history. That project will turn CGL’s natural gas into liquid, where it can be shipped more densely to Asia to help replace coal, especially in industrial applications, and reduce global carbon emissions.

While CGL and LNG Canada near completion, two more proposals for LNG projects in BC are coming onto the scene. A historic first, these projects are led by First Nations: the Cedar LNG project near Kitimat from the Haisla Nation and Ksi Lisims LNG in Northern BC from the Nisga’a Nation.

A third LNG project, Woodfibre LNG, was approved by the Squamish Nation in the first-ever Indigenous environmental impact review and is now beginning construction.

Indigenous involvement – and leadership – in major energy projects has arrived. Indigenous LNG is Canadian LNG, and Canadian LNG has become Indigenous LNG. This is a global first.

Beyond natural gas and LNG, the Trans Mountain oil pipeline expansion project from Alberta to Burnaby is anticipating completion in March 2024. The expansion triples the pipeline’s capacity, the only oil pipeline to Canada’s West coast.

While there has been Indigenous opposition to this project, there has also been support, including formal agreements and billions in contracting deals for Indigenous businesses during construction. In fact, several Indigenous groups are working to acquire an equity stake in the pipeline.

Historic restrictions in the Indian Act mean Indigenous peoples face enormous barriers in raising or borrowing money to finance equity partnerships. Yet the ability to purchase equity in major projects is to enter the big leagues of economic development and wealth generation.

The federal government is expected to announce a guaranteed loan program that will enable Indigenous Peoples to finally bypass these structural obstacles and purchase equity shares in resource projects. Alberta and Saskatchewan already have their own programs, and the federal government has a lot to learn from them, particularly Alberta’s Alberta Indigenous Opportunities Corporation.

Supporters of such programs point out that Ottawa, without spending a cent of taxpayers’ money, could backstop loans to Indigenous communities. It’s a low-risk mechanism and another way to support economic reconciliation.

Unfortunately, there is uncertainty about whether this federal initiative will allow all projects to be supported. There are reports that Ottawa will exclude oil and gas projects from the guaranteed-loan program, in favour of exclusively renewable and green energy projects.

Indigenous groups argue that they can make up their own minds on what to invest in.

Four Indigenous groups have told the prime minister: “This program cannot be driven by an ‘Ottawa-knows-best’ policy approach – the judgement of Indigenous Nations about projects to pursue must be respected. . . . We believe that this initiative is not only a practical step towards reconciliation but an opportunity to demonstrate Canada’s commitment to a just future for First Peoples.”

If this loan program is created, it should be up to Indigenous peoples to decide what they want to get involved in. If we are in an era of reconciliation, shouldn’t we empower Indigenous Peoples to be decision-makers?

We can do big things as a country when we partner with Indigenous peoples. But we need to ground our policies in a positive framework that builds agency.

For many Indigenous peoples, that starts with charting their own economic destiny, including in natural resources.

Margareta Dovgal is Resource Works’ Managing Director and Event Lead for the Indigenous Partnerships Success Showcase

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2025 Federal Election

MORE OF THE SAME: Mark Carney Admits He Will Not Repeal the Liberal’s Bill C-69 – The ‘No Pipelines’ Bill

Published on April 2, 2025

By

From EnergyNow.Ca

Mark Carney on Tuesday explicitly stated the Liberals will not repeal their controversial Bill C-69, legislation that prevents new pipelines being built.

Carney has been campaigning on boosting the economy and the “need to act forcefully” against President Donald Trump and his tariffs by harvesting Canada’s wealth of natural resources — until it all fell flat around him when he admitted he actually had no intention to build pipelines at all.

When a reporter asked Carney how he plans to maintain Bill C-69 while simultaneously building infrastructure in Canada, Carney replied, “we do not plan to repeal Bill C-69.”

“What we have said, formally at a First Ministers meeting, is that we will move for projects of national interest, to remove duplication in terms of environmental assessments and other approvals, and we will follow the principle of ‘one project, one approval,’ to move forward from that.”

“What’s essential is to work at this time of crisis, to come together as a nation, all levels of government, to focus on those projects that are going to make material differences to our country, to Canadian workers, to our future.”

“The federal government is looking to lead with that, by saying we will accept provincial environmental assessments, for example clean energy projects or conventional energy projects, there’s many others that could be there.”

“We will always ensure these projects move forward in partnership with First Nations.”

Tory leader Pierre Poilievre was quick to respond to Carney’s admission that he has no intention to build new pipelines. “This Liberal law blocked BILLIONS of dollars of investment in oil & gas projects, pipelines, LNG plants, mines, and so much more — all of which would create powerful paychecks for our people,” wrote Poilievre on X.

“A fourth Liberal term will block even more and keep us reliant on the US,” he wrote, urging people to vote Conservative.

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Alberta

Energy sector will fuel Alberta economy and Canada’s exports for many years to come

Published on April 2, 2025

By

From the Fraser Institute

By Jock Finlayson

By any measure, Alberta is an energy powerhouse—within Canada, but also on a global scale. In 2023, it produced 85 per cent of Canada’s oil and three-fifths of the country’s natural gas. Most of Canada’s oil reserves are in Alberta, along with a majority of natural gas reserves. Alberta is the beating heart of the Canadian energy economy. And energy, in turn, accounts for one-quarter of Canada’s international exports.

Consider some key facts about the province’s energy landscape, as noted in the Alberta Energy Regulator’s (AER) 2023 annual report. Oil and natural gas production continued to rise (on a volume basis) in 2023, on the heels of steady increases over the preceding half decade. However, the dollar value of Alberta’s oil and gas production fell in 2023, as the surging prices recorded in 2022 following Russia’s invasion of Ukraine retreated. Capital spending in the province’s energy sector reached $30 billion in 2023, making it the leading driver of private-sector investment. And completion of the Trans Mountain pipeline expansion project has opened new offshore export avenues for Canada’s oil industry and should boost Alberta’s energy production and exports going forward.

In a world striving to address climate change, Alberta’s hydrocarbon-heavy energy sector faces challenges. At some point, the world may start to consume less oil and, later, less natural gas (in absolute terms). But such “peak” consumption hasn’t arrived yet, nor does it appear imminent. While the demand for certain refined petroleum products is trending down in some advanced economies, particularly in Europe, we should take a broader global perspective when assessing energy demand and supply trends.

Looking at the worldwide picture, Goldman Sachs’ 2024 global energy forecast predicts that “oil usage will increase through 2034” thanks to strong demand in emerging markets and growing production of petrochemicals that depend on oil as the principal feedstock. Global demand for natural gas (including LNG) will also continue to increase, particularly since natural gas is the least carbon-intensive fossil fuel and more of it is being traded in the form of liquefied natural gas (LNG).

Against this backdrop, there are reasons to be optimistic about the prospects for Alberta’s energy sector, particularly if the federal government dials back some of the economically destructive energy and climate policies adopted by the last government. According to the AER’s “base case” forecast, overall energy output will expand over the next 10 years. Oilsands output is projected to grow modestly; natural gas production will also rise, in part due to greater demand for Alberta’s upstream gas from LNG operators in British Columbia.

The AER’s forecast also points to a positive trajectory for capital spending across the province’s energy sector. The agency sees annual investment rising from almost $30 billion to $40 billion by 2033. Most of this takes place in the oil and gas industry, but “emerging” energy resources and projects aimed at climate mitigation are expected to represent a bigger slice of energy-related capital spending going forward.

Like many other oil and gas producing jurisdictions, Alberta must navigate the bumpy journey to a lower-carbon future. But the world is set to remain dependent on fossil fuels for decades to come. This suggests the energy sector will continue to underpin not only the Alberta economy but also Canada’s export portfolio for the foreseeable future.

Jock Finlayson

Senior Fellow, Fraser Institute
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