The approval of the $40 billion liquefied natural gas project in Northern British Columbia is a huge win for the First Nations who find their communities along the associated up-and-coming pipelines and export terminal. This mega project means jobs, careers, business opportunities and revenues for these Indigenous people and their communities for decades to come.
It also means lots of opportunities for all Canadians working in the oil and gas industry especially in the provinces of British Columbia and Alberta. At a time where oil pipelines have been suspended or cancelled all together, the BC LNG investment is a shining light in a rather dark outlook for Canada’s petroleum industry.
While this massive energy infrastructure project will benefit all Canadians, more specifically here’s some hard facts showing several reasons why BC LNG matters to First Nations.
- Also see: 3 Reasons Why Canada Needs BC LNG
The Coastal GasLink pipeline to feed the new liquefied natural gas facility underway in Kitimat travels through the territories of 20 different First Nations. This pipeline - to be built, operated and maintained by TransCanada Corp. - has resulted in signed project agreements with all elected officials in Indigenous communities along it’s path – 20 in all.
The final investment decision made on BC LNG means that more than $1 billion CAD will be granted in employment and work contracts, much of which will be awarded to Indigenous businesses and communities.
The provincial government of B.C. has also agreed to pay $34 million to the First Nations along the Coastal GasLink pipeline route between the pre-construction and completion phases of the project.
Reason #2 – Community Benefits
Along with economic benefits come those for the community. TransCanada has awarded approximately $620 million in contract work for management, health and security services associated with the pipeline's construction to Indigenous businesses in northern British Columbia.
Furthermore, an additional $400 million in employment opportunities and contracts are expected to go these First Nations communities during the Coastal GasLink pipeline’s construction.
This money is without a doubt going to help Indigenous communities thrive by providing funds for infrastructure, schools and other things of the sort. This money will help these communities prosper, just like the responsible natural resource development has for many other Canadians!
Reason #3 – Continuing Benefits
The benefits don’t stop there. The provincial government of British Columbia will further help First Nations prosper from the LNG project through multibillion-dollar revenue-sharing agreements.
Signed by the former BC Liberal government during 2014 and 2015, each First Nation community with its own pipeline benefit agreement will receive $10 million every year once the pipeline is in service.
This agreement continues as long as the Coastal GasLink pipeline continues to deliver natural gas to the terminal at Kitimat for export to global markets.
The current 40-year export license that BC LNG has means that these pipeline benefit agreements could generate up to $5.6 billion in total revenues for First Nations.
I Support Canadian Energy
Canada’s oil and gas companies adhere to the highest environmental and human rights standards on the planet. With an increasing global demand for natural gas, Canada should be the one to meet that demand through Canadian LNG.
Truth is that when Canada meets rising global demand, other producers with lower environmental standards / regulations and regard for human rights have to compete with us. Therefore, Canadian-produced oil and natural gas is a win for Canada and the global environment!
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