Carney’s 15% pipeline stake offer get pushback from Indigenous groups

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeCommoditiesEnergyOil & GasCarney’s 15% pipeline stake offer get pushback from Indigenous groupsThis isn’t the first time Canada has made a Trans Mountain offer to Indigenous communitiesAuthor of the article:Robert Tuttle and Laura Dhillon KaneLast updated 47 minutes ago The pipeline expansion project was opposed by many Indigenous communities in the west, but others saw opportunity. Photo by Serik Baib/Adobe StockThe Canadian government’s plan to offer a 15 per cent stake in the recently expanded Trans Mountain pipeline system to Indigenous communities is garnering criticism from some leaders as inadequate.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountTrans Mountain Corp., the operator of the only oil pipeline running from Alberta to the British Columbia coast, was purchased by the government eight years ago from Kinder Morgan Inc. Soon after, Indigenous groups in western Canada formed to seek ownership stakes in the system.Former Prime Minister Justin Trudeau’s administration started a process to sell a portion of it to them, but never followed through. Now, Mark Carney’s government is trying again.“We’ve come a long way but, you know, the 15 per cent is somewhat a feeble attempt at economic reconciliation,” Stephen Buffalo, president of the Alberta-based Indian Resource Council, said in an interview. “They should at least put 50 per cent on the table.”The project to expand Trans Mountain to a capacity of 890,000 barrels a day was completed in 2024, years behind schedule and at a cost of around $35 billion. The pipeline has opened up significant exports to Asia for Canadian oil producers, reducing reliance on United States buyers and improving the price they receive for their crude.The expansion project was opposed by many Indigenous communities in the west, but others saw opportunity. Groups such as the Western Indigenous Pipeline Group in BC, which formed a partnership with Pembina Pipeline Corp., and Project Reconciliation argued that offering ownership to First Nations and Metis communities would provide them with both revenue and environmental oversight of infrastructure that would affect their traditional territories.Project Reconciliation envisioned full First Nation ownership of the system, with revenue going into a sovereign wealth fund for communities. Steve Mason, the group’s top executive, formulated a plan to finance the purchase with a bond offering underpinned by the tolls collected on the pipeline.First Nations “should own a material piece,” he said by phone. “When we say material, it should be a minimum of 30 per cent.”The 15 per cent offer came in a recent letter sent by the government, Finance Minister François-Philippe Champagne’s office confirmed. The government also offered a $2.5 million lump sum payment to Indigenous communities as a “goodwill gesture,” Champagne said at a news conference Tuesday.“I would say it’s a very meaningful offer,” he said. “You’re talking about an existing asset, which has been de-risked very much in line with market practice.”This isn’t the first time Canada has made a Trans Mountain offer to Indigenous communities. Three years ago, the federal government sent a letter offering an undefined stake in the pipeline to dozens of communities on or near the pipeline route.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.The government was interested in selling a stake of about 30 per cent, Alberta Premier Danielle Smith said in 2024. That effort eventually stalled.While the Canadian government has said it doesn’t seek to be a long-term owner of Trans Mountain, the pipeline is paying taxpayers dividends and the system is being expanded further by 300,000 barrels a day.Recently, Trans Mountain was commissioned to lead a new one-million-barrel-a-day line along a similar route, but ending at a new deep-water terminal that can handle the world’s biggest tankers.Not every First Nation leader was critical of the government’s latest proposal. The offer is a starting point, Dale Swampy, chief executive of the pro-development National Coalition of Chiefs, said by phone. The stake could be increased later.“It’s a great offer,” he said. “I think 15 per cent allows you to gain some control over environmental monitoring, over who gets hired.”We apologize, but this video has failed to load.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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