The World’s First Indigenous Majority Owned LNG Project Is Coming to Canada!

Guest Post from Canadian Energy Centre.

The final investment decision for the world’s first Indigenous majority-owned LNG project, on B.C.’s northern coast, signals a new era for Indigenous economic participation in Canada’s energy sector, says the Haisla Nation’s Chief Councillor.

Crystal Smith says the Cedar LNG project reversed traditional roles for an energy project, with an Indigenous community inviting an outside proponent to participate rather than the other way around.

“I think the uniqueness of Cedar is that it was Indigenous-owned from the beginning, the onset of Cedar, the first decisions were made by members of the Haisla Nation as the makeup of the first Cedar LNG board members,” Smith said on a recent podcast hosted by ARC Energy Research Institute.

“Our nation has been working on the project for approximately a decade, so a little over 10 years it’s been in our sight and in our vision.”

In fall 2018, as part of a benefit agreement with the LNG Canada project in their traditional territory, the Haisla negotiated space on the Coastal GasLink pipeline for their own LNG project.

In June 2021, Pembina Pipeline Corporation entered into an agreement with the Haisla to become the Nation’s industry partner.

“We had been aware of the Cedar LNG opportunity and were quite inspired by what the Haisla were trying to do with their project and what they had accomplished with their capacity on Coastal GasLink,” said Pembina CEO Scott Burrows.

“The Haisla invited people into the project.”

The US$4 billion floating LNG export terminal in Kitimat, B.C., will have capacity to produce around three million tonnes per year of LNG for export overseas, primarily to meet growing demand in Asia.

B.C’s environmental assessment office noted Cedar LNG would have among the world’s lowest emissions, at 0.08 tonnes of carbon dioxide equivalent per tonne of LNG.

To Smith, the increased participation of Indigenous communities in LNG projects is an opportunity to improve their quality of life.

“We’ve managed poverty in Indigenous communities for far too long, and these projects mean a change in history for a lot of these communities in terms of providing revenues back to their community to be able to provide programs and services on a completely different level than we’ve ever been used to,” said Smith.

“You think about the statistics that go along with poverty; I’ve experienced them. Suicide, alcoholism and we’ve never had any other solution. And through these projects it means hope, it means a different outlook in terms of what you’re providing your generations of today and for future generations.”

The community has already seen benefits from its relationship with LNG Canada. The project has brought the Haisla employment opportunities and the ability to invest in social programming as well as a new apartment complex and a new health centre that, for the first time, includes space for traditional healing.

Smith has said that owning Cedar LNG takes their opportunity to a new level.

With Pembina as the operator, together the partners are now focused on construction at the project site and overseeing the overseas build of the floating LNG vessel.

“Once in service we will be working, we are the big O operator, but the plan is to employ as many Haisla Nation members as possible,” said Burrows.

The project is anticipated to be in service by late 2028.

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