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Canadian Energy Centre

Indigenous leaders meet G7 diplomats to make case for Canadian LNG

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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.”

John Desjarlais, executive director of the Indigenous Resource Network in Bragg Creek, Alta. Photo by Dave Chidley for the Canadian Energy Centre

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.

Indigenous leaders meet with Karina Häuslmeier from the German embassy in Canada. Photo courtesy Energy for a Secure Future

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.

Indigenous leaders meet with Japan’s ambassador to Canada Kanji Yamanouchi. Photo courtesy Energy for a Secure Future

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.”

 

 

Artificial Intelligence

World’s largest AI chip builder Taiwan wants Canadian LNG

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Taiwan Semiconductor Manufacturing Company’s campus in Nanjing, China

From the Canadian Energy Centre

By Deborah Jaremko

Canada inches away from first large-scale LNG exports

The world’s leading producer of semiconductor chips wants access to Canadian energy as demand for artificial intelligence (AI) rapidly advances.  

Specifically, Canadian liquefied natural gas (LNG).  

The Taiwan Semiconductor Manufacturing Company (TSMC) produces at least 90 per cent of advanced chips in the global market, powering tech giants like Apple and Nvidia.  

Taiwanese companies together produce more than 60 per cent of chips used around the world. 

That takes a lot of electricity – so much that TSMC alone is on track to consume nearly one-quarter of Taiwan’s energy demand by 2030, according to S&P Global. 

“We are coming to the age of AI, and that is consuming more electricity demand than before,” said Harry Tseng, Taiwan’s representative in Canada, in a webcast hosted by Energy for a Secure Future. 

According to Taiwan’s Energy Administration, today coal (42 per cent), natural gas (40 per cent), renewables (9.5 per cent) and nuclear (6.3 per cent), primarily supply the country’s electricity 

The government is working to phase out both nuclear energy and coal-fired power.  

“We are trying to diversify the sources of power supply. We are looking at Canada and hoping that your natural gas, LNG, can help us,” Tseng said. 

Canada is inches away from its first large-scale LNG exports, expected mainly to travel to Asia.  

The Coastal GasLink pipeline connecting LNG Canada is now officially in commercial service, and the terminal’s owners are ramping up natural gas production to record rates, according to RBN Energy. 

RBN analyst Martin King expects the first shipments to leave LNG Canada by early next year, setting up for commercial operations in mid-2025.  

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Canadian Energy Centre

Report: Oil sands, Montney growth key to meet rising world energy demand

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Cenovus Energy’s Sunrise oil sands project in northern Alberta

From the Canadian Energy Centre

By Will Gibson

‘Canada continues to be resource-rich and competes very well against major U.S. resource bases’

A new report on North American energy highlights the important role that Canada’s oil sands and Montney natural gas resources play in supplying growing global energy demand.

In its annual North American supply outlook, Calgary-based Enverus Intelligence Research (a subsidiary of Enverus, which is headquartered in Texas and also operates in Europe and Asia) forecasts that by 2030, the world will require an additional seven million barrels per day (bbl/d) of oil and another 40 billion cubic feet per day (bcf/d) of natural gas.

“North America is one of the few regions where we’ve seen meaningful growth in the past 20 years,” said Enverus supply forecasting analyst Alex Ljubojevic.

Since 2005, North America has added 15 million bbl/d of liquid hydrocarbons and 50 bcf/d of gas production to the global market.

Enverus projects that by the end of this decade, that could grow by a further two million bbl/d of liquids and 15 bcf/d of natural gas if the oil benchmark WTI stays between US$70 and $80 per barrel and the natural gas benchmark Henry Hub stays between US$3.50 and $4 per million British thermal unit.

Ljubojevic said the oil sands in Alberta and the Montney play straddling Alberta and B.C.’s northern boarder are key assets because of their low cost structures and long-life resource inventories.

“Canada continues to be resource-rich and competes very well against major U.S. resource bases. Both the Montney and oil sands have comparable costs versus key U.S. basins such as the Permian,” he said.

“In the Montney, wells are being drilled longer and faster. In the oil sands, the big build outs of infrastructure have taken place. The companies are now fine-tuning those operations, making small improvements year-on-year [and] operators have continued to reduce their operating costs. Investment dollars will always flow to the lowest cost plays,” he said.

“Are the Montney and oil sands globally significant? Yes, and we expect that will continue to be the case moving forward.”

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