LNG

Protests are continuing across Canada in support of a minority of First Nation Indigenous peoples who are against the Coastal GasLink pipeline to bring feed-gas to the LNG Canada plant in British Columbia.

However, a majority of First Nations chiefs in Canada and British Columbia support the building of pipelines, LNG plants and other facilities on their traditional lands as they are given stakes, economic benefits and better job prospects.

Police arrested protesters occupying land of the First Nation band called, the Wet'suwet'en, over the construction of the Coastal GasLink pipeline while environmental activists disrupted ports and railway lines in other provinces.

The $6.6 billion Coastal GasLink pipeline will run for 670 kilometres, carrying natural gas from Dawson Creek in BC to the coastal town of Kitimat, located about 650 kilometres north of the province’s largest city Vancouver.

The pipeline route goes through traditional Wet'suwet'en territory and they are against it. However, other First Nations are backing the pipeline.

While some 20 elected band councils have signed agreements with Coastal GasLink Ltd., a subsidiary of North American pipeline company TC Energy, five hereditary chiefs have objected to the pipeline partially crossing the 22,000 square kilometres they say are under their jurisdiction. 

Ellis Ross, a BC member of the legislature and former chief councillor of the Haisla First Nation whose traditional lands are around Kitimat, said he sees the protests as meant for those who don't live in the affected areas and who don't understand Indigenous rights and title.

“It's geared for the coffee shops in Toronto, it's geared for the San Francisco crowd that have no idea,” said Ellis.

“They have no idea, or no interest, in why First Nations leaders were signing onto these major projects,” he added.

There has been an expansion in the protests that had previously been in isolated areas of the BC interior.

Protests took place in the centre of the city of Edmonton and in the province of Ontario there was a blockade of railway tracks near the town of Belleville.

There were also marches to Vancouver city hall and at the BC legislature building in in Victoria. 

The LNG Canada project is led by Royal Dutch Shell and is the largest private sector investment in Canada's history with spending of C$40 billion (US$30.2Bln).

Shell and its four partners, Mitsubishi Corp. of Japan, Malaysian energy company Petronas, Chinese major PetroChina and Korea Gas Corp., had agreed in October 2018 to start construction at the brownfield site near Kitimat that had been an energy products terminal before being acquired by Shell in 2011.

BC Premier John Horgan issued a statement about the protests at the Parliament Buildings in Victoria and in communities throughout the province.

“British Columbians have the right to peaceful protest. We support people in the exercise of their democratic rights - within the law,” said Horgan.

“That said, I understand the frustration of people who have been unable to go to work, who have been unable to enter government buildings or have been unable to get around in their communities,” he added.

“My government, represented by Scott Fraser, Minister of Indigenous Relations and Reconciliation, met on an urgent basis for two days in February in an effort to find a peaceful resolution to the impasse regarding the Coastal GasLink project. Regrettably, the talks were unsuccessful,” he explained.

“My government continues to be available to engage with the Wet’suwet’en Hereditary Chiefs,” said the BC Premier.

 “These events show us why meaningful reconciliation with Indigenous peoples is our shared responsibility and is critical to our province and our country,” he said.

The Canadian Pacific Coast province of British Columbia, once briefly known as the North American centre of liquefied natural gas export development, plans to introduce new legislation on tax credits for LNG ventures to re-launch BC as a potential provider of clean fuel for Asia.

BC provincial Finance Minister Carole James said the proposed changes would bring thousands of jobs to the region and boost the economic prospects for the population.

“British Columbians are counting on us to attract LNG investment that meets strict conditions: delivering jobs and financial benefits to BC, creating economic partnerships with Indigenous peoples and protecting our clean air, land and water,” said James in a statement.

“This legislation completes the process of creating a fiscal framework that invites investment while supporting those conditions,” added James.

The province previously had at least a dozen large-scale projects backed by the world’s leading energy companies then policies pushed by the federal government in Ottawa since 2015 made projects uneconomic and coincided with an oil price slump.

The one surviving large-scale venture in the province is the Royal Dutch Shell-led LNG Canada, which has become the largest private sector investment in Canada's history with planned spending of C$40 billion (US$30.2Bln).

Shell and its four partners, Mitsubishi Corp. of Japan, Malaysian energy company Petronas, Chinese major PetroChina and Korea Gas Corp., agreed in October 2018 to start immediate construction at the brownfield site near Kitimat that had been an energy products terminal before being acquired by Shell in 2011.

Shell is pressing ahead while recognizing that it was likely not possible to get unanimous support for a major infrastructure venture project in BC.

The project includes a US$5-billion pipeline of 670 kilometres being developed by TransCanada Corp. to bring the feed-gas from the Montney shale basin in northeast BC to the Pacific Coast.

Supporters of LNG projects and the jobs they bring believe the opening up of the abundant shale-gas basins will give scope for other ventures to be developed on the BC coast.

The tax measures could particularly help smaller scale LNG export ventures previously proposed by First Nation groups to give their people jobs and security stretching 30 to 50 years into the future.

The Finance Minister said the BC legislation brings together the final fiscal elements of the policy framework for natural gas development set out by provincial Premier John Horgan a year ago.

The provincial government said it was already offering LNG developers performance payment agreements and industrial electricity rates on par with other industrial users in BC.

The legislation proposes to amend the Income Tax Act to implement a natural gas tax credit for LNG development in BC and to repeal the Liquefied Natural Gas Income Tax Act that created barriers for investment in the energy sector.

The tax credit will be available from 2020 and can be used to reduce BC’s corporate income tax rate from 12 percent to 9 percent.

“The legislation will repeal the Liquefied Natural Gas Project Agreements Act that left British Columbians vulnerable to footing the bill for special industry tax and regulatory protections,” stated James.

“Once complete, these steps will deliver the fiscal setting needed for LNG Canada’s proposed $40-billion project in northern British Columbia, expected to create 10,000 construction jobs and up to 950 permanent jobs in the Kitimat processing terminal,” said James.

“Additionally, this project is also on track to be the cleanest of its kind in the world, meaning it will fit within the greenhouse gas (GHG) reduction targets of government’s CleanBC climate action plan,” stated the minister.

“Our government’s vision is to make life better for British Columbians in all regions of our province,” said James.

“Along with providing services people need, like affordable child care and interest-free student loans, that also means delivering new jobs and opportunities through resource development that is environmentally responsible,” added James.

The province’s Green Party Leader Andrew Weaver said he believed the new legislation sent mixed messages about the government's commitment to addressing climate change.

“Continuing to push for LNG development is short-sighted and works directly against CleanBC objectives,” said Weaver.

He described the decision as “a generational sell-out” that would only serve to increase greenhouse-gas emissions. 

LNG Canada is moving forward thanks to the support of members of the native North American Haisla First Nation in the Kitimat region of British Columbia who overcame the posturing of the Canadian political elite who tried to lecture the native peoples about caring for the environment while denying them well-paid jobs and careers in the energy industry.

Western Canada’s natural gas industry is the subject of a revival effort after a surprise offering of tax breaks to liquefied natural gas projects by the provincial government of British Columbia in a last-ditch effort to save the LNG Canada project proposed by Royal Dutch Shell and its Asian partners.

British Columbia Premier Christy Clark said benefit deals linked to LNG projects signed with two native North American First Nations were a milestone for the natural gas future of the Canadian province.

The Canadian province of British Columbia said the decision by the Asian-run Woodfibre LNG project to proceed and its full authorization means it will also be locked into using state-backed electricity and associated technology being pushed onto all liquefaction and export ventures.

The Canadian province of British Columbia, where up to a dozen liquefied natural gas export projects are planned and only one has been approved, is mounting a trade mission to LNG buying countries Japan and South Korea led by provincial Premier Christy Clark.