Coming off the completion of two major pipelines – the Trans Mountain Expansion (TMX) and Coastal GasLink (CGL) – Canada has more upcoming opportunities to expand its oil and natural gas exports to countries abroad while maximizing the value of our natural resources --- a win-win-win for Canadian families, governments, and the world.
The reality is that Canadians are facing challenging economic conditions nationally. Our labour productivity is down, our standard of living is decreasing, and our economy is performing poorly compared to our peers. With $670 billion of cancelled or suspended natural resource projects seen across Canada since 2015, it’s clear we can no longer forfeit these economy-boosting developments.
The Prince Rupert Gas Transmission (PRGT) Line, a now-under-construction project that will connect B.C.’s natural gas resources to the proposed Ksi Lisims LNG facility on the West Coast, is yet another major project that, if built, will underpin a strong economy for Indigenous and non-Indigenous communities for decades to come. In the remote regions of northern B.C., such economic opportunities come once in a lifetime, according to many Indigenous leaders.
Like TMX and CGL, non-governmental organizations (NGOs) are already campaigning against the pipeline, despite its much-needed economic benefits.
Here are three critical reasons the Prince Rupert Gas Transmission Line is in B.C.’s best interests and why Canadians cannot afford to miss out on this immense opportunity.
- Pipeline Shortage Costs B.C. Lower Mainland Residents $1.5 Billion Annually
- Canada Ought to Support Its Own Workforces, Families & Communities
- U.S. Looks Past Keystone XL Pipeline to Less Reliable Producers. Why?
#1 - Indigenous Ownership & Collaboration
Indigenous people will be proudly at the heart of Canadian LNG. pic.twitter.com/5pGP51ahiP
— LNG Action (@LNGAction) December 19, 2024
The Nisga’a Nation, a main proponent of Ksi Lisims LNG, is part owner of the PRGT pipeline project, which was sold to the Nisga’a Lisims Government and Western LNG in June of 2024 [1]. As a result, the completion of PRGT would have a direct and positive impact on Indigenous economic reconciliation with project proponents.
“Today’s update reaffirms our commitment to meaningful actions that respond to feedback we’ve heard from First Nations along the right of way,” said Eva Clayton, President of the Nisga’a Lisims Government, while announcing the purchase agreement [2].
“PRGT is our chance as Indigenous people to develop a pipeline project in our own way, to show how it can and should be done. By working together, and with world-leading construction managers, we’re confident this project will set a new bar… and leave a legacy of prosperity for Nations across B.C.”
CGL, for example - another natural gas pipeline in B.C. of similar size and scope to PRGT - ended up spending $1.8 billion with Indigenous and local businesses [3]. It also agreed to sell a 10% equity interest to 17 different First Nations along its route [4], creating a new means of revenue generation for these communities over the long term to support various initiatives such as infrastructure and social programs.
Because of the similarities between the two projects, it is not unreasonable to assume that PRGT would likely also have a similar positive economic impact on local communities and the province as a whole.
Canadian and Indigenous families cannot afford to miss the economic opportunities presented by significant energy infrastructure projects like the PRGT pipeline.
#2 - Economic Opportunities & Job Creation
More funding for healthcare, education, emergency services, and social programs is a resounding positive.
— LNG Action (@LNGAction) November 3, 2024
Why would anyone obstruct these local economic opportunities? #BcPoli pic.twitter.com/bEXVoX6XoB
Like other natural gas developments in B.C., the PRGT pipeline would bring about massive economic benefits for Indigenous and non-Indigenous communities. It would create thousands of jobs and result in billions of dollars in spending with local businesses to procure various goods and services.
A key part of the Ksi Lisims LNG project, PRGT will transport natural gas from B.C.’s northeastern plays to the West Coast for liquefaction and export. Altogether, Ksi Lisims LNG is estimated to create $55 billion in economic activity over 30 years, including the facility, pipeline, and natural gas production [4]. The project will be capable of producing 12 million tonnes of LNG per year and generate 4,000 construction jobs.
“For Indigenous communities, the outcomes of building Canadian LNG are tangible and essential: jobs and Indigenous-owned businesses, own-source revenues to fund clean drinking water, housing and economic opportunities, and more,” says Karen Ogen, CEO of the First Nations LNG Alliance [6].
With the advent of new LNG export facilities and the related industrial activity that comes with it, natural gas may also become B.C.’s most valuable export, according to industry leaders [7]. Additionally, the B.C. government estimates that natural gas royalties are forecast to reach $684 million in 2023-24, increasing annually to $1.43 billion in 2027 [8].
The economic opportunities from LNG are enormous. If we look at LNG Canada, for example, the numbers are incredible [8]:
- More than 30,000 Canadians have worked on LNG Canada to date
- LNG Canada’s cumulative spending on local, Indigenous, and other businesses by LNG Canada has exceeded $4.7 billion
- That includes $3.8 billion to Indigenous-owned and local area businesses
- The project also represents the largest private-sector investment in Canadian history --- at $40 billion
Without the PRGT pipeline, Canadians will lose out on the projected $55 billion in economic activity from Ksi Lisims LNG, only to see those opportunities go to other countries abroad while global natural gas demand continues to grow to new record highs.
#3 - Lasting Positive Impacts for Communities
9 Times Countries Said They Want Canadian-Made Liquefied Natural Gas (LNG) Since 2022 #CdnPoli https://t.co/nZml6Y8gEO
— Canada Action (@CanadaAction) November 30, 2024
From benefit agreements to equity stakes, B.C.’s natural gas infrastructure projects are creating once-in-a-lifetime opportunities for remote municipalities to generate revenues that will have a direct, positive, and lasting impact on their communities.
“I’m very fortunate to be in the middle of the construction of a huge project and I am seeing first-hand the social impact that it’s having in our community. And it is a story that needs to be told, it needs to be recognized,” said Elected Chief Councillor Crystal Smith of the Haisla Nation in an interview with the Canadian Gas Association [10].
Haisla Nation is the majority owner of Cedar LNG, another upcoming project in British Columbia that will be supplied by the CGL pipeline.
“We’re not just changing and having an impact on people’s lives of today. I truly believe that what we’re creating in our community [and] the way that we’ve taken our people along for this journey, is something that’s going to be generationally positive: there are going to be huge positive impacts for many generations because we’re creating role models in a way. Opportunities that we see with LNG Canada, and with Coastal GasLink – and this is just one way the energy project is a very dynamic opportunity – have many different ripple effects that we’re seeing as we take into consideration the impact of people coming into our territory,” Smith continued.
“We’re going to need more doctors. We’re going to need more teachers. We’re going to need more nurses. This is a huge impact in everybody’s lives when it comes to our Haisla membership in the region, and the province.”
“We were able to build a youth center for the first time ever in our community. For many years, we’ve heard our leaders and ourselves included, saying our youth is our future and let’s go start investing in them. And now we finally have a facility for youth, where we can provide endless programming and opportunity for them. These are huge impacts in our community.”
Without the PRGT pipeline, many rural Canadian and Indigenous communities will lose out on the massive community-building opportunities presented by projects like Ksi Lisims LNG. Is that something we can afford?
B.C. Needs the PRGT Pipeline
The Prince Rupert Gas Transmission Pipeline represents a crucial opportunity for British Columbia's economic and social development.
With Indigenous ownership and collaboration at its core, substantial job creation and economic benefits, and long-term community development opportunities, PRGT stands to deliver meaningful benefits across northern B.C. for decades to come.
As global demand for natural gas continues to grow, this project would strengthen Canada's position as a reliable energy supplier and create lasting prosperity for Indigenous and non-Indigenous communities.
The evidence is clear: PRGT is more than just a pipeline – it's a pathway to long-term economic reconciliation, job creation, and community development that British Columbia cannot afford to miss.
SOURCES:
1 - https://www.tcenergy.com/operations/natural-gas/prince-rupert-gas-transmission-project/
2 - https://www.nisgaanation.ca/prgt-advancing-under-new-ownership-leading-construction-firms-retained/
3 - https://energynow.ca/2024/01/coastal-gaslinks-completion-is-key-to-unlocking-canadian-natural-gas-for-the-world/
4 - https://calgaryherald.com/business/energy/coastal-gaslink-pipeline-fully-installed-tc-energy
5 - https://www.cbc.ca/news/business/bakx-ksi-lisims-lng-1.6107901
6 - https://indigenouslng.ca/wp-content/uploads/2024/05/Indigenous-LNG-Opinion-Editorial.pdf
7 - https://www.biv.com/news/resources-agriculture/natural-gas-become-bcs-most-valuable-export-8295033
8 - https://www.biv.com/news/commentary/opinion-launching-canadas-lng-industry-will-bring-billions-to-bcs-economy-8398967
9 - https://www2.gov.bc.ca/gov/content/industry/natural-gas-oil/lng/indigenous-peoples-and-lng
10 - https://www.cga.ca/energy-magazine-post/an-interview-with-haisla-nation-chief-councillor-crystal-smith/