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Hamilton Spectator
8 hours ago
- Business
- Hamilton Spectator
BC LNG project divides Indigenous nations, risks financial and environmental harm
A long-delayed and controversial liquefied natural gas (LNG) pipeline and export terminal in northern British Columbia is now officially back on track and promoted as a new opportunity for Indigenous economic development. However, a report released last week warns that the risks — to land, community and even investors — are far greater than the promised benefits. The Prince Rupert Gas Transmission (PRGT) pipeline and Ksi Lisims LNG terminal are poised to export up to 12 million tonnes of LNG annually, much of it destined for Asian markets. The pipeline's route cuts through Gitxsan and Tsimshian territories, but many hereditary leaders and community members remain opposed. Janna Wale, who is a Gitxsan community member and co-author of the new Yellowhead Institute report said the dominant narrative portraying LNG projects as straightforward economic opportunities overlooks significant realities. 'There's been one kind of narrative presented — economic growth is good and LNG equals opportunity. But there are trade-offs and checks and balances. It's important to include those in the conversation,' Wale said. Financial risk stands out as a core issue for Indigenous communities being drawn into the project as equity investors, joint venture partners or through procurement contracts. Hayden King, executive director of the Yellowhead Institute, said these communities also bear the greatest risks if things go wrong. Few long-term shipper contracts have been signed, forcing the project to depend on the volatile spot LNG market, where global competition is fierce and prices are unpredictable. The report highlights that Japan and South Korea — key prospective markets for BC LNG exports — are already experiencing surpluses. 'Given the glut in the LNG market, where is this going to be sold, to which market and how is it going to get there? Those answers are not yet clear and so that presents a risk to those in it, and then those that are impacted by it,' King said. Emily Lowan, who co-authored the financial risk analysis for the report, said typically, 80 per cent of a project's funding comes from loans and 20 per cent from direct investment. With this setup, sharing the equity portion equally between two parties (Western LNG and the Nisga'a Nation) means each party must directly invest 10 per cent. 'Equity owners are paid after lenders, which means they are financially vulnerable if a project defaults or does not result in projected returns,' Lowan said. While Ottawa's $10 billion Indigenous Loan Guarantee Program is seen as proof that the government wants Indigenous communities to have a real share in these projects will offer some financial cushion, Lowan said the program does not cover lost revenue if profits fall short or shield nations if a commercial partner collapses. Lowan said at the time the report was written, no loan guarantee programs protected the full corporate debt exposure. With project costs for the PRGT soaring and on track to reach $30 billion as outlined in the report, a hypothetical $3 billion equity stake for the Nisga'a Nation would absorb nearly 30 per cent of Canada's Indigenous loan guarantee fund. If costs overrun — as seen in previous megaprojects — lenders may demand more equity or refuse additional financing, potentially triggering defaults, she said. The report highlights how the floating LNG terminals and associated infrastructure will threaten marine ecosystems through dredging that destroys coral reefs and oyster beds, underwater noise pollution and shipping operations that produce significant greenhouse gas emissions. 'It really is a watershed of impacts. When you start to impact one part of that system, the rest of the ecosystem will be impacted as well. These cascading effects are especially concerning as climate change stresses these environments,' Wale said. The pipeline crosses two of British Columbia's largest salmon-producing river systems, requiring clear-cutting through major waterways and drilling beneath critical spawning habitats. Wale warned the pipeline will bisect important salmon runs, huckleberry patches and moose habitat critical to Indigenous food security and cultural practices. Despite this, the pipeline's approval relies on a permit granted in 2014. In June, British Columbia's Environmental Assessment Office ruled construction was 'substantially started,' allowing developers to move forward without a new review. This permit bypasses contemporary environmental standards, even as climate impacts worsen — raising concerns among conflicting Indigenous voices. Socially, resource hub towns such as Terrace are expected to face higher housing and food costs and overwhelmed health services. 'There will be 1,200 people in a man camp just a kilometer away … our health care system here is hanging on by its threads, and we're going to be bringing in over 1,000 workers into a tiny community,' said Gina Mowatt, a Gitxsan member. The influx of transient workers in 'man-camps' also raises worries about increased risks of sexual violence toward Indigenous women, a pattern linked to such developments. Beyond these risks, the report details uncertainty linked to BC's shifting LNG policy. The 2024 commitment to 'net-zero ready' LNG projects by 2030 still allows ongoing fossil gas use if electricity isn't yet available, meaning emissions will persist and put additional strain on local environments. While the Nisga'a Nation has actively invested in and supported the project, many hereditary leaders and community members of the Gitxsan and Tsimshian nations oppose it, asserting they never gave free, prior and informed consent. King warned that this dynamic revives a colonial 'divide and develop' tactic that pits Indigenous Nations against one another. 'There are plenty of opportunities for First Nations to negotiate with BC or Ontario or Canada, but fewer opportunities for nations to negotiate and undertake this type of diplomacy amongst themselves and I think that's by design,' he said. 'I don't think Canada wants nations to be working together. I think they want them to be divided.' He said the governments and corporations cultivate division by labeling communities that support resource development as 'the good Indians' while portraying resisting groups as 'the bad Indians.' This 'cleavage that's created and cast,' King said, mainly benefits external actors and undermines Indigenous governance, long-standing diplomatic relations and collective power. He said the approval process itself risks deepening these divisions by advancing consultation and consent with only select Indigenous groups, while excluding others is further fracturing Indigenous unity. Mowatt frames the conflict as a struggle between Indigenous communities and external actors, rather than a dispute within Indigenous nations. '[Instead] the war is against PRGT; the war is against these massive international corporations that are coming into our territory, every intention to destroy our lives here,' Mowatt said. As the project moves forward amid fractured consent and complex risks, the social and environmental stakes continue to weigh on the communities whose lives and lands intersect with the pipeline's path. 'We need the whole picture … it's about the legacy left for future generations, and who actually gets to decide what that legacy will be,' Wale said. Sonal Gupta / Local Journalism Initiative / Canada's National Observer Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
National Observer
2 days ago
- Business
- National Observer
BC LNG project divides Indigenous nations, risks financial and environmental harm
A long-delayed and controversial liquefied natural gas (LNG) pipeline and export terminal in northern British Columbia is now officially back on track and promoted as a new opportunity for Indigenous economic development. However, a report released last week warns that the risks — to land, community and even investors — are far greater than the promised benefits. The Prince Rupert Gas Transmission (PRGT) pipeline and Ksi Lisims LNG terminal are poised to export up to 12 million tonnes of LNG annually, much of it destined for Asian markets. The pipeline's route cuts through Gitxsan and Tsimshian territories, but many hereditary leaders and community members remain opposed. Janna Wale, who is a Gitxsan community member and co-author of the new Yellowhead Institute report said the dominant narrative portraying LNG projects as straightforward economic opportunities overlooks significant realities. 'There's been one kind of narrative presented — economic growth is good and LNG equals opportunity. But there are trade-offs and checks and balances. It's important to include those in the conversation,' Wale said. Financial risks Financial risk stands out as a core issue for Indigenous communities being drawn into the project as equity investors, joint venture partners or through procurement contracts. 'There's been one kind of narrative presented — economic growth is good and LNG equals opportunity. But there are trade-offs and checks and balances. It's important to include those in the conversation,' Janna Wale said. Hayden King, executive director of the Yellowhead Institute, said these communities also bear the greatest risks if things go wrong. Few long-term shipper contracts have been signed, forcing the project to depend on the volatile spot LNG market, where global competition is fierce and prices are unpredictable. The report highlights that Japan and South Korea — key prospective markets for BC LNG exports — are already experiencing surpluses. 'Given the glut in the LNG market, where is this going to be sold, to which market and how is it going to get there? Those answers are not yet clear and so that presents a risk to those in it, and then those that are impacted by it,' King said. Emily Lowan, who co-authored the financial risk analysis for the report, said 80 per cent of PRGT's funding comes from loans and 20 per cent from direct investment. With this setup, sharing the equity portion equally between two parties (Western LNG and the Nisga'a Nation) means each holds a 10 per cent ownership stake in the whole project. 'Equity owners are paid after lenders, which means they are financially vulnerable if a project defaults or does not result in projected returns,' Lowan said. While Ottawa's $10 billion Indigenous Loan Guarantee Program is seen as proof that the government wants Indigenous communities to have a real share in these projects will offer some financial cushion, Lowan said the program does not cover lost revenue if profits fall short or shield nations if a commercial partner collapses. Lowan said at the time the report was written, no loan guarantee programs protected the full corporate debt exposure. The Nisga'a Nation's $3 billion equity stake would absorb nearly 30 per cent of Canada's Indigenous loan guarantee fund. If costs overrun — as seen in previous megaprojects — lenders may demand more equity or refuse additional financing, potentially triggering defaults, she said. Environmental and social concerns The report highlights how the floating LNG terminals and associated infrastructure will threaten marine ecosystems through dredging that destroys coral reefs and oyster beds, underwater noise pollution and shipping operations that produce significant greenhouse gas emissions. 'It really is a watershed of impacts. When you start to impact one part of that system, the rest of the ecosystem will be impacted as well. These cascading effects are especially concerning as climate change stresses these environments,' Wale said. The pipeline crosses two of British Columbia's largest salmon-producing river systems, requiring clear-cutting through major waterways and drilling beneath critical spawning habitats. Wale warned the pipeline will bisect important salmon runs, huckleberry patches and moose habitat critical to Indigenous food security and cultural practices. Despite this, the pipeline's approval relies on a permit granted in 2014. In June, British Columbia's Environmental Assessment Office ruled construction was 'substantially started,' allowing developers to move forward without a new review. This permit bypasses contemporary environmental standards, even as climate impacts worsen — raising concerns among conflicting Indigenous voices. Socially, resource hub towns such as Terrace are expected to face higher housing and food costs and overwhelmed health services. 'There will be 1,200 people in a man camp just a kilometer away … our health care system here is hanging on by its threads, and we're going to be bringing in over 1,000 workers into a tiny community,' said Gina Mowatt, a Gitxsan member. The influx of transient workers in 'man-camps' also raises worries about increased risks of sexual violence toward Indigenous women, a pattern linked to such developments. Beyond these risks, the report details uncertainty linked to BC's shifting LNG policy. The 2024 commitment to 'net-zero ready' LNG projects by 2030 still allows ongoing fossil gas use if electricity isn't yet available, meaning emissions will persist and put additional strain on local environments. Rifts between Indigenous nations While the Nisga'a Nation has actively invested in and supported the project, many hereditary leaders and community members of the Gitxsan and Tsimshian nations oppose it, asserting they never gave free, prior and informed consent. King warned that this dynamic revives a colonial 'divide and develop' tactic that pits Indigenous Nations against one another. 'There are plenty of opportunities for First Nations to negotiate with BC or Ontario or Canada, but fewer opportunities for nations to negotiate and undertake this type of diplomacy amongst themselves and I think that's by design,' he said. 'I don't think Canada wants nations to be working together. I think they want them to be divided.' He said the governments and corporations cultivate division by labeling communities that support resource development as 'the good Indians' while portraying resisting groups as 'the bad Indians.' This 'cleavage that's created and cast,' King said, mainly benefits external actors and undermines Indigenous governance, long-standing diplomatic relations and collective power. He said the approval process itself risks deepening these divisions by advancing consultation and consent with only select Indigenous groups, while excluding others is further fracturing Indigenous unity. Mowatt frames the conflict as a struggle between Indigenous communities and external actors, rather than a dispute within Indigenous nations. '[Instead] the war is against PRGT; the war is against these massive international corporations that are coming into our territory, every intention to destroy our lives here,' Mowatt said. As the project moves forward amid fractured consent and complex risks, the social and environmental stakes continue to weigh on the communities whose lives and lands intersect with the pipeline's path. 'We need the whole picture … it's about the legacy left for future generations, and who actually gets to decide what that legacy will be,' Wale said.
Vancouver Sun
02-07-2025
- Politics
- Vancouver Sun
On Canada Day, Gitxsan Nation reflects on responsible land development
On July 1, Gitxsan hereditary Chief Simoogit Geel is thinking about the land, and about Ayook , the Gitxsan system of laws governing their people's relationship with each other and with the land. The chief, also known as Catherine Blackstock, is thinking about the health of her Wilp, or house, and the salmon, the forests, the minerals and wildlife on her nation's ancestral territories. She is also thinking of the recent provincial decision to allow the Prince Rupert Gas Transmission pipeline to go ahead without renewing its expired environmental certificate or requiring consultation with First Nations. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. The proposed pipeline would transport natural gas from northeastern B.C. to a liquefied natural gas facility on the west coast, cutting through 50 kilometres of Gitanyow territory. Although an agreement with the Gitxsan nations has been in place since 2013, the American-backed project has raised controversy and legal challenges over its environmental impact. Its 11-year-old environmental certificate expired last fall. On June 10, the Union of B.C. Indian Chiefs, led by Grand Chief Philip Stewart, condemned the decision to move the pipeline ahead without engaging in consultation: 'Once again, it feels like we are headed into a long, hot summer.' 'We don't want to see a repeat of what happened with the Wet'suwet'en, with the armed police invading their pointing guns at people,' said Geel. 'No injunctions.' By respecting the traditional process of Ayook , and engaging in dialogue with the Gitxsan, Geel believes that could be avoided. 'We want to work on things as they come up,' said Geel. In 2024, Gitxsan hereditary chiefs called for the resignation of B.C. Supreme Court Chief Justice Leonard Marchand Jr., for allowing industries to use B.C. courts to obtain injunctions that lead to enforcement by the RCMP on Gitxsan territory. Geel, and 11 other hereditary Gitxsan chiefs launched an awareness campaign this week to highlight traditional Gitxsan Ayook, or laws, and their essential role in guiding responsible land development and economic growth on Gitxsan Laxyip, or traditional land. The Gitxsan Nation covers about 35,000 square kilometres in northwestern B.C. including the Hazelton area in the watersheds of the upper Skeena and Nass River region. Its communities include the Kispiox, Glen Vowell, Kitwanga, Kitwankool and Gitsegukla. 'As a hereditary chief, I have a responsibility to take care of the land. We have our own system. We have our own laws,' said Geel. 'The industries are pretty good and knowledgeable about knowing who they should come to, and who they should talk to, but we need more respect from the government,' said Geel. The B.C. NDP's new fast-track law, which gives the provincial government broad power to override regulatory hurdles, has raised concerns. 'We still stand by our authority,' said Geel. ' You can't push something through without us.' While the original pipeline agreement is still in place, Geel said it needs to be revisited since so much time has passed. 'We do have to consider there have to be potential impacts and turn over every stone to address any concerns.' Respect for the Gitxsan traditions and culture means conversations with each of the wilps, or house groups, of the nation, each of which holds the responsibility of preserving the sanctity and safety of their traditional territories. 'We are matrilineal, so how you receive your lineage is through your mother,' said Geel. The head chief of each Wilp has the authority over a specific piece of land, but works with other chiefs and community members to come to a decision. 'If you belong to a house or wilp and that house is tied to a piece of land and the land you use to sustain yourself and have a concern about what is happening, they need to come to me and talk to the Wilp and work things through.' Paramount is preserving the sanctity of the process, respecting the voice of each Wilp . The system, with its guiding principle of Ayook , has worked since time immemorial, said Geel, who emphasized that land management decisions are based on traditional knowledge combined with science. 'We were asked to take care of the land, and each of us take it very seriously.' dryan@
Yahoo
10-06-2025
- Business
- Yahoo
B.C. premier defends new LNG pipeline with terminus near Prince Rupert
B.C. Premier David Eby is defending the provincial government's approval to continue construction on a new pipeline project that will supply natural gas to a proposed floating liquefied natural gas (LNG) terminal north of Prince Rupert, saying his government would not turn away investment in the province. The Prince Rupert Gas Transmission project is a joint venture between the Nisga'a Nation and Texas-based Western LNG to supply natural gas to the proposed Ksi Lisims LNG facility, a project the province says is still undergoing environmental assessment. "The Ksi Lisims project is an Indigenous-owned project led by the Nisga'a Nation. They are a treaty nation that has control over their jurisdiction," Eby said, speaking from Seoul, South Korea, as he nears the end of his 10-day trade mission to Asia. "They have a vision for economic growth in the area, for their people, which includes selling B.C. resources into the Asian market, where I am right now." The Nisga'a Nation and Western LNG say the Ksi Lisims project would be a floating production facility capable of producing 12 million tonnes of LNG per year. The project faces opposition from several environmental groups and the Gitanyow hereditary chiefs, who argue it will have negative environmental consequences, including a risk to important salmon habitat. Tara Marsden, sustainability director for the Gitanyow hereditary chiefs, previously told CBC News there are concerns about Western LNG's financial backing from Blackstone Inc. Blackstone is a major American asset manager whose CEO publicly endorsed U.S. President Donald Trump and contributed to his election campaign — with Marsden saying the investment undermines any notion that the project is needed to push back against Trump's tariff threats. CBC News asked Eby whether the bulk of the profits from the Prince Rupert Gas Transmission project would enrich a U.S. company. "We're not in the business of turning away investment in British Columbia," the premier responded. "Especially investment that assists us in diversifying our customers for our resources and allows us to get a higher price for those resources." The pipeline was first approved in 2014 under the ownership of Calgary-based TC Energy Corp, when it was meant to supply the now-cancelled Pacific NorthWest LNG terminal spearheaded by Malaysian energy giant Petronas. It was purchased by the Nisga'a Nation and Western LNG in 2024 under their revised proposal for the Ksi Lisims facility. Eby says he wants to work with Alberta Eby was also asked Monday about comments from Alberta Premier Danielle Smith, who said she could convince him to drop his opposition to a second crude oil pipeline from Alberta to B.C.'s North Coast. "I'm not the one who stands between Premier Smith and a pipeline to the coast. There's no proponent, there's no money, there's no project right now," Eby said. "In the event that Premier Smith is successful in assembling those things, we'll cross that bridge when we come to it." Prime Minister Mark Carney said last week he supports "nation-building projects," including a possible decarbonized oil pipeline — if he can find consensus among the said companies in South Korea that he's talking to are focused on bringing in hydrogen. He said that would involve Alberta using blue hydrogen, and B.C. exporting green hydrogen, which he said would aid in carbon transition. "I'm happy to talk to Premier Smith about our shared goals of increasing prosperity, about uniting the country," he told reporters. "Focusing on a project that currently does not exist, and focusing on our differences rather than where we can work together, is not the spirit." Eby travelled from Malaysia to Seoul where he met with officials from conglomerates like Hyundai and Samsung as well as the Canadian ambassador to South Korea. His trade mission to Asia, a bid to diversify the province's trading relationships amid the tariff war with the U.S., will wrap up Tuesday.
Hamilton Spectator
05-06-2025
- Business
- Hamilton Spectator
‘A long, hot summer': B.C.'s approval of PRGT pipeline sets stage for conflict, First Nations leader says
The British Columbia government gave a green light to an 800-kilometre natural gas pipeline on Thursday, paving the way for construction to start this summer — and setting the stage for what one First Nations leader warns could be a 'long, hot summer' of conflict. The Prince Rupert Gas Transmission (PRGT) pipeline will carry gas from northeast B.C. to the proposed Ksi Lisims gas liquefaction and export facility on the northwest coast near the Alaska border, crossing more than 1,000 waterways, including major salmon-bearing rivers and tributaries. In a press release, the BC Environmental Assessment Office gave the project a 'substantially started' designation, locking in its original environmental approval indefinitely. That original approval — for the pipeline to end in Prince Rupert, B.C — was granted in 2014 and expired last November. The assessment office said enough construction occurred before the expiry date to earn it the designation, even though the pipeline's new route takes it to a different location. The decision to deem the pipeline substantially started was authored by Alex MacLennan, chief executive assessment officer and deputy energy minister. In a report outlining the reasons for the decision, MacLennan acknowledged that First Nations, including the Gitxsan Wilps, raised a range of concerns about the project, including the impact of greenhouse gas emissions and uncertainty about the pipeline's final route. The assessment office is currently considering two requests from the proponents to change the pipeline's route to serve the proposed Ksi Lisims LNG facility. 'Though I recognize that this provides some uncertainty regarding the final route of the project, the significant investment in, and pursuit of, the amendments indicate to me that PRGT Ltd. continues to invest in the project and is committed to the project being completed,' MacLennan wrote. 'As for concerns regarding greenhouse gas emissions, this matter is not relevant to the substantial start determination.' The Nisg̱a'a Lisims Government and Texas-based Western LNG are partnering to build the pipeline, after buying it from Calgary-based TC Energy last year. (TC Energy is the company behind the contentious Coastal GasLink pipeline , which saw protracted conflict during construction that led to more than 80 arrests of land defenders, observers and journalists.) While the Nisg̱a'a government has stated the project provides much-needed economic benefits to its citizens, other affected First Nations, including leaders in neighbouring Gitanyow and Gitxsan territories, have voiced their opposition and argue the PRGT pipeline will negatively impact lands and waters and populations of fish and wildlife. In a statement, Simooget (Chief) Watakhayetsxw Deborah Good said the decision 'isn't the end of the story.' Watakhayetsxw was one of the Gitanyow Chiefs who set up a blockade last August when pipeline construction started, barring any industry-related traffic from passing through. 'We'll continue to fight to protect our territory (Lax'yip) with all actions needed, in the courts and on the ground,' she said. 'From August to November 2024, we denied access for PRGT pipeline construction and we'll be continuing our efforts to ensure no construction happens on our territory,' she said. Grand Chief Stewart Phillip, president of the Union of B.C. Indian Chiefs, said approving the pipeline directly contradicts the government's stated commitment to upholding Indigenous Rights, which was passed into law in 2019 with B.C.'s Declaration on the Rights of Indigenous Peoples Act. 'There are First Nations who have very loudly stated their opposition to this pipeline and they will continue to do so,' Phillip said in a statement. 'The Declaration Act and interim approach are being tossed out the window. This is not a government who believes in reconciliation and it could trigger a long, hot summer.' Naxginkw Tara Marsden, Wilp Sustainability Director with the Gitanyow Hereditary Chiefs, questioned whether the project met criteria for the substantial start decision. While the definition of a substantial start is somewhat vague, the essence of the designation is an acknowledgement a project proponent has put in a significant amount of work to get a project going. The work done on the PRGT pipeline mainly consisted of clearing forest from a short section of the 800-kilometre route on Nisga'a lands. 'This decision makes a mockery of the true purpose and intent of what is considered to be a 'substantial start' for major infrastructure projects,' Naxginkw said in a statement. 'It leaves us asking, 'Why does the government have processes if it doesn't intend to follow them and continues to exclude concerns raised by impacted First Nations?' ' The pipeline and associated liquefied natural gas (LNG) project, Ksi Lisims LNG, are the subject of three lawsuits by Indigenous and non-Indigenous communities and groups, including a legal challenge launched by Gitanyow Hereditary Chiefs. 'Our livelihoods depend on healthy and abundant sockeye from the Nass and Skeena rivers,' Naxginkw said. 'This pipeline would cut across some of the healthiest intact salmon watersheds left in B.C.' Naxginkw previously told The Narwhal the conflict over the pipeline is pitting nation against nation, which she said is a distraction from the real issue. 'We're stuck in this cycle of people only paying attention when it's that really heated, race-based conflict and the fact that this is nation to nation is even juicier,' she explained. 'But that's not the story — the story is the climate is going to kill us all.' Natural gas is mostly composed of methane, a powerful greenhouse gas 80 times more powerful than carbon dioxide for its short-term warming impact on the planet. At every step of the process of extracting the fossil fuel for energy production — including at wellheads, along the pipeline and during the liquefaction, shipping, regasification and combustion processes — adds more greenhouse gases to the atmosphere, intensifying the effects of climate change. When built, the Prince Rupert Gas Transmission pipeline will be able to transport 3.6 billion cubic feet of natural gas per day. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
