Welcome to Net Zero, your daily industry brief on clean energy and Canadian-resource politics.
Project Reconciliation, a Canadian Indigenous group, is seeking a full ownership stake in the Trans Mountain oil pipeline, according to the group’s new chairman.
The group is among several Indigenous organizations that formed more than two years ago to seek a stake in Canada’s only oil-pipeline system that delivers crude oil from Alberta to the Pacific Coast. Until now, Project Reconciliation had sought no more than a 51 per cent stake. Now it’s seeking 75 per cent, with the option to eventually own 100 per cent of the pipeline.
“We are hopeful that we can get our position across,” Robert Morin, the group’s chairman, told Bloomberg. The group has said it has funding lined up for the purchase, without revealing its financing source.
The group wants to use pipeline revenue to establish a sovereign wealth fund to support Indigenous communities, which are often poorer than other. Other Indigenous groups, including some in British Columbia, see the project as a threat to the environment and have sought to block it. The federal government bought Trans Mountain from Kinder Morgan for $4.5 billion in 2018 after the company threatened to scrap the line’s expansion in the face of fierce environmental opposition.
Alberta’s oilsands industry badly needs more conduits to export its crude, and many hope that Indigenous participation will help quell objections to the project. Prime Minister Justin Trudeau’s government has said it will sell its ownership once the expansion is completed, and is open to Indigenous participation. The government is currently engaged in consultations with First Nation communities. Bloomberg has the full story.
Ahead of the G7 Summit in the U.K. later this week, Australian Prime Minister Scott Morrison continues to resist international pressure to lock in more ambitious climate commitments. In an address to a think tank on Wednesday, Morrison spoke of a nation’s sovereignty over its methods of carbon-emissions reductions.
“Australia does not support setting sectoral targets or timeframes for decarbonizing particular parts of our economy, or setting false deadlines for phasing out specific energy sources,” Morrison said in a speech to the Perth USAsia Centre.
Climate change is expected to be a popular topic at the summit, where Morrison will have meetings with other leaders, including his first face-to-face with U.S. President Joe Biden. The Guardian has more.
Staying with the G7, a new study has determined that the economies of G7 countries, including Canada’s, will shrink twice as much as they did during the pandemic if they don’t address climate change. The research, conducted by Oxfam and the Swiss Re Institute, found that the world’s biggest industrial economies will lose 8.5 per cent of GDP annually, or nearly $5 trillion by 2050, if political leaders don’t take concrete action against climate change.
“The climate crisis is already devastating lives in poorer countries, but the world’s most developed economies are not immune,” Danny Sriskandarajah, CEO of Oxfam Great Britain, said Monday.
Meanwhile, the Biden administration said it will explore the potential of offshore wind energy in the Gulf of Mexico. On June 11, the Department of the Interior’s Bureau of Ocean Energy Management will publish a request for interest in developing offshore wind projects on the Outer Continental Shelf.
“This is an important first step to see what role the Gulf may play in this exciting frontier,” Interior Secretary Deb Haaland said in a statement.
Biden has made expanding the use of clean energy, especially offshore wind, a cornerstone of his fight against climate change. Reuters has that story.
On Wednesday morning at 8:56 a.m., West Texas Intermediate was trading at US$70.36 and Brent Crude was going for US$72.63.
Pembina Pipeline says it will buy a 50 per cent stake in the proposed Cedar LNG Project to develop a floating liquefied natural gas (LNG) facility in British Columbia, in partnership with the Haisla Nation. Pembina expects to invest about $90 million in Cedar LNG over the next two years, including costs to acquire its interest in the project and developmental ones.
Cedar LNG, which will have an annual LNG liquefaction capacity of about three million tonnes, lies within the traditional territory of the Haisla Nation and will provide LNG to Asia-Pacific markets.
The estimated gross cost cost of Cedar LNG is $2.4 billion, and the final investment decision is expected in 2023. Reuters has more details.
Northern Affairs Minister Dan Vandal met with representatives of the the Nuluujaat Land Guardians, the group that blockaded the airstrip at Baffinland Iron Mines Corp.’s Mary River mine, who protested against Mary River mine’s proposed expansion.
“Guardians spoke about the strengths and values of their communities and land-based economic options for current and future generations of north Baffin residents,” reads a statement from the group. They want Vandal to understand “the choices and preferences of residents who do not wish to be involved in mining.”
The Nunavut Impact Review Board is currently conducting an assessment of the mine’s expansion, which opponents believe will have a negative effect on the surrounding environment. Nunatsiaq News has the full story.
Finally, Innovation Minister François-Philippe Champagne and Natural Resources Minister Seamus O’Regan are set to make an announcement on Wednesday regarding efforts to advance a project to create net-zero emission hydrogen energy in Canada. They will be joined by Alberta Premier Jason Kenney and Don Iverson, the mayor of Edmonton.
Canadian Crude Index was trading at US$55.44 and Western Canadian Select was going for US$56.15 this morning at 8:57 a.m.