Canadian Energy Centre
Indigenous leaders meet G7 diplomats to make case for Canadian LNG
Indigenous leaders meet with U.S. ambassador to Canada David Cohen. Photo courtesy Energy for a Secure Future
From Shawn Logan of the Canadian Energy Centre Ltd.
‘Every official had a real desire to really understand Indigenous sentiment around resource development’
As G7 leaders left Hiroshima, Japan last month, they made a significant admission that liquefied natural gas (LNG) is a critical fuel to help reduce dependence on Russian energy, and that increased natural gas investment is important.
“In this context, we stress the important role that increased deliveries of LNG can play and acknowledge that investment in the sector can be appropriate in response to the current crisis and to address potential gas market shortfalls provoked by the crisis,” wrote the G7 in their final communique last week.
The decision comes just weeks after a small group of Indigenous leaders went to Ottawa to meet face-to-face with diplomats from some of the world’s top economies, convened by Energy for a Secure Future.
Their message to the world was simple: Indigenous communities in Canada can and should be partners at the table when it comes to developing and sharing our country’s vast natural resources. And it may have resonated.
For John Desjarlais, executive director of the Indigenous Resource Network, the vote of confidence for LNG is music to his ears.
“I’d like to think that we were heard – we met with some pretty influential people and heard some of the right things,” he said.
“For them to make that commitment is a big deal, and certainly a difference from some of the early indicators before the G7.”
Tapped earlier this year as the new executive director of the Indigenous Resource Network, Desjarlais found himself in Ottawa with other Indigenous leaders in April, meeting with diplomatic representatives from Canada’s G7 partners – Germany, France, Japan and the United States – as well as delegations from Poland and India.
Desjarlais said he was surprised just how open diplomats were to the notion that Indigenous communities in Canada can be key players in the global energy marketplace.
“What a whirlwind. It was inspiring, especially speaking with the ambassadors,” Desjarlais said of the two-day diplomatic blitz that both challenged perceptions and paved a path for Indigenous voices to play a greater role on the international stage.
“Every official had a real desire to really understand Indigenous sentiment around resource development. There was a sincere desire to learn from our perspective.”
First Nations and Metis have emerged as key partners in Canadian resource projects, particularly the country’s nascent LNG industry.
Global demand for reliable and responsibly produced LNG has continued to grow, with Russia’s invasion of Ukraine last year thrusting it into even greater prominence. The leaders of Canada’s G7 partners Germany and Japan both came to Canada last year to make direct appeals for more Canadian LNG – they left with no firm commitments.
Desjarlais and a group of fellow Indigenous leaders who are on the advisory council for Energy for a Secure Future – a non-partisan coalition of business, labour and Indigenous representatives – outlined their vision for how Canada and First Nations can help be a solution in the drive for increased global energy security, while also helping lower emissions by providing a cleaner alternative to coal.
Crystal Smith, chief councillor of the Haisla Nation on B.C.’s coast, said the first step is dispelling the notion that Indigenous people oppose resource development in Canada.
“When Europeans, Asians and Americans think of Canada’s Indigenous peoples, they often think we oppose all energy development,” she said during a press conference to mark April’s diplomatic meetings.
“We aren’t victims of development. Increasingly we are partners and even owners in major projects.”
The Haisla Nation has a 50 per cent ownership stake in the proposed $3-billion Cedar LNG project, which was granted regulatory approval earlier this year, and is expected to begin operations in 2027.
It marks the largest Indigenous-owned infrastructure project in Canadian history, as well as the first Indigenous-owned LNG terminal in the world.
Karen Ogen, CEO of the First Nations LNG Alliance, said it’s projects like Cedar LNG and others currently under development that will not only help Indigenous communities achieve prosperity, but help the global community in the quest for vital energy security.
“LNG development has provided immediate- and medium-termed opportunities to lift thousands of Indigenous people and our communities out of inter-generational poverty,” she said.
“We are determined to develop our resources in a socially and environmentally responsible way. We want to work with Canada and our allies in the G7 to bring urgency to the development and export of Canadian LNG.”
Beyond Cedar LNG, dozens of First Nations and Métis communities have entered into equity ownership agreements in pipelines, LNG facilities and carbon capture and storage projects, among others.
The Ksi Lisims LNG project, a joint venture with the Nisga’a Nation in northern B.C., has been granted a 40-year export licence from the Canada Energy Regulator, while in Atlantic Canada the Miawpukek First Nation is a part-owner of the proposed export project LNG Newfoundland and Labrador.
Large consortiums representing Indigenous communities have also acquired or are looking to acquire stakes in major pipeline projects including Coastal GasLink, Trans Mountain, and several oil sands pipelines.
According to Desjarlais, the Ottawa summit proved to be a fruitful meeting of the minds. He said it could signal a more important role for Indigenous communities both as more equal resource partners in Canada, but on the world stage as well. The group has been asked to meet again in June with U.S. ambassador David Cohen.
“I never thought it would accelerate to this point – it’s accelerating so fast,” he said.
“Ownership is reconciliation. There’s a whole cascade of benefits that come from these projects everywhere.”
Clean Energy Fuels CEO Andrew Littlefair, Tourmaline CEO Mike Rose, and Mullen Group chairman Murray Mullen attend the opening of a new Clean Energy/Tourmaline compressed natural gas (CNG) fuelling station in Calgary on Oct. 22, 2024. Photo courtesy Tourmaline
From the Canadian Energy Centre
New compressed natural gas fueling stations in Grande Prairie and Calgary join new stop in Edmonton
Heavy-duty truckers hauling everything from restaurant supplies to specialized oilfield services along one of Western Canada’s busiest corridors now have more access to a fuel that can help reduce emissions and save costs.
Two new fuelling stations serving compressed natural gas (CNG) rather than diesel in Grande Prairie and Calgary, along with a stop that opened in Edmonton last year, create the first phase of what proponents call a “natural gas highway”.
“Compressed natural gas is viable, it’s competitive and it’s good for the environment,” said Murray Mullen, chair of Mullen Group, which operates more than 4,300 trucks and thousands of pieces of equipment supporting Western Canada’s energy industry.
Right now, the company is running 19 CNG units and plans to deploy another 15 as they become available.
“They’re running the highways right now and they’re performing exceptionally well,” Mullen said on Oct. 22 during the ribbon-cutting ceremony opening the new station on the northern edge of Calgary along Highway 2.
“Our people love them, our customers love them and I think it’s going to be the way for the future to be honest,” he said.
Heavy-duty trucks at Tourmaline and Clean Energy’s new Calgary compressed natural gas fuelling station. Photo courtesy Tourmaline
According to Natural Resources Canada, natural gas burns more cleanly than gasoline or diesel fuel, producing fewer toxic pollutants and greenhouse gas emissions that contribute to climate change.
The two new CNG stops are part of a $70 million partnership announced last year between major Canadian natural gas producer Tourmaline and California-based Clean Energy Fuels.
Their deal would see up to 20 new CNG stations built in Western Canada over the next five years, daily filling up to 3,000 natural gas-fueled trucks.
One of North America’s biggest trucking suppliers to businesses including McDonald’s, Pizza Hut, Subway and Popeye’s says the new stations will help as it expands its fleet of CNG-powered vehicles across Canada.
Amy Senter, global vice-president of sustainability with Illinois-based Martin Brower, said in a statement that using more CNG is critical to the company achieving its emissions reduction targets.
For Tourmaline, delivering CNG to heavy-duty truckers builds on its multi-year program to displace diesel in its operations, primarily by switching drilling equipment to run on natural gas.
Between 2018 and 2022, the company displaced the equivalent of 36 Olympic-sized swimming pools worth of diesel that didn’t get used, or the equivalent emissions of about 58,000 passenger vehicles.
Tourmaline CEO Mike Rose speaks to reporters during the opening of a new Tourmaline/Clean Energy compressed natural gas fuelling station in Calgary on Oct. 22, 2024. Photo courtesy Tourmaline
Tourmaline CEO Mike Rose noted that the trucking sector switching fuel from diesel to natural gas is gaining momentum, notably in Asia.
A “small but growing” share of China’s trucking fleet moving to natural gas helped drive an 11 percent reduction in overall diesel consumption this June compared to the previous year, according to the latest data from the U.S. Energy Information Administration.
“China’s talking about 30 percent of the trucks sold going forward are to be CNG trucks, and it’s all about reducing emissions,” Rose said.
“It’s one global atmosphere. We’re going to reduce them here; they’re going to reduce them there and everybody’s a net winner.”
Switching from diesel to CNG is “extremely cost competitive” for trucking fleets, said Clean Energy CEO Andrew Littlefair.
“It will really move the big rigs that we need in Western Canada for the long distance and heavy loads,” he said.
Tourmaline and Clean Energy aim to have seven CNG fuelling stations operating by the end of 2025. Construction is set to begin in Kamloops, B.C., followed by Fort McMurray and Fort St. John.
“You’ll have that Western Canadian corridor, and then we’ll grow it from there,” Littlefair said.
In December 2023, the Alberta Indigenous Opportunities Corporation provided a $150 million loan guarantee to support the 12 Indigenous Communities of Wapiscanis Waseskwan Nipiy Limited Partnership (including the Peerless Trout First Nation) in financing an equity investment in oil and gas midstream infrastructure in the Clearwater play in Northern Alberta. Photo courtesy AIOC
From the Canadian Energy Centre
By Will Gibson
‘We live in a new world, and I’m excited about the possibilities’
Five pristine lakes sit in and around the Peerless Trout First Nation in the unbroken boreal forest of north-central Alberta about 200 kilometres north of Slave Lake.
When asked about the fishing, Tyler Letendre smiles wryly. “It lives up to the name,” says the Nation’s director of operations and economic development officer. “It’s peerless.”
The community’s leadership is exploring the idea of building a lodge to lure recreational anglers from across North America to reel in the large pike, trout and walleye that inhabit the dark blue waters in those lakes.
After joining the Clearwater Infrastructure Limited Partnership in December 2023 with 11 other Indigenous communities and Tamarack Valley Energy, they have the financial clout to develop a resort.
“Joining the partnership has been a game changer for our nation, 100 per cent. We won’t compromise on treaty rights, but we are big fans of economic growth,” says Letendre.
“The money provided by the federal government to First Nations isn’t enough to sustain the programs and infrastructure required so we have to generate our own income. Equity deals like Clearwater do that,” he says.
“We are shareholders along with major institutions. We now have banks who want to come invest in our communities. We live in a new world, and I’m excited about the possibilities.”
The Peerless Trout First Nation is located about 200 kilometres north of Slave Lake, Alberta. Photo courtesy Peerless Lake First Nation
The growing number and value of Indigenous equity ownership deals in Alberta is helping fuel stronger participation in the province’s economy, according to a recently released report from ATB Financial and MNP.
The study concluded that total Indigenous economic activity in Alberta grew by a substantial 42 per cent between 2019 and 2023.
Last year, Indigenous-owned businesses generated $5.25 billion in economic output, $380 million in tax revenues and $1.33 billion in labour income from 25,800 full-time jobs.
The resource sector has an outsized impact in this area as its relationship with First Nations and Métis communities in Alberta has evolved and grown.
“The fastest growing and largest opportunities for Indigenous communities in Alberta come from the resource sector,” says Justin Bourque, president of Âsokan Generational Developments, a consultancy that specializes in partnerships between Indigenous communities and industry.
He says the evolution of the relationship between Indigenous communities and the resource sector has mirrored the broader progress of reconciliation.
“Our entire society is on a journey of reconciliation between Indigenous and non-Indigenous communities. The engagement and relationship between the resource industry and Indigenous has continued to evolve.”
In recent years, particularly following the creation of the Alberta Indigenous Opportunities Corporation (AIOC) in 2019, these relationships have increasingly moved from short-term benefits to long-term legacies through equity ownership deals like Peerless Trout’s agreement with Tamarack Energy.
Justin Bourque, president of Âsokan Generational Developments, pictured on his trap line with the Long Lake oil sands facility in the background. Photo for Canadian Energy Centre
ATB highlighted the Astisiy project in the oil sands region, a Cree word meaning “thread from sinew” that is used for Indigenous beading.
In September 2021, Suncor Energy and the AIOC enabled eight Indigenous communities to acquire 15 per cent ownership of the Northern Courier Pipeline, a 90-kilometre system that transports bitumen from the Fort Hills mine to the East Tank Farm north of Fort McMurray.
The community partners are projected to receive $16 million in annual payments from the deal.
Bourque’s Willow Lake Métis Nation has used its portion of the revenues to purchase a 205-acre parcel southeast of Fort McMurray, giving the community land to call its own.
“Ownership and partnership is the next logical evolution of the relationship between Indigenous communities and the energy sector,” says Bourque.
“Before Indigenous communities had the opportunity to invest in these resource assets, a lot of the economic value out of these investments would flow to institutional investors along with the corporation,” he says.
“By having some of those benefits flow into Indigenous communities, it builds both resilience by giving them financial sovereignty and allows that community to address priorities and needs determined by them, not somebody in Ottawa.”
Opportunities are now happening at the Peerless Trout First Nation.
“Our chief and council are in the best position to decide what works for the 900 members of Peerless Lake when it comes to how to invest the monies from the partnership, whether that’s in housing, education, health care, more post-secondary scholarships or building a hockey arena or community facility,” Letendre says.
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