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No plans to quit
LNG Canada says it will complete project while TransCanada shows signs of doubt
Gary Park for Petroleum News
LNG Canada has no intention of caving in to opponents of its mega-LNG venture, relying instead on the approval of all 20 elected First Nations along the 400-mile Coastal GasLink pipeline from northeastern British Columbia to the export terminal at Kitimat on the northern B.C. coast.
“Regardless of the headlines and the protests, LNG Canada has every intention of completing our project,” the consortium Chief Executive Officer Andy Caditz told an audience in Prince George.
He promised to deliver on commitments of jobs and economic benefits for First Nations, as well as local residents and trades people across northern B.C.
The 20 indigenous communities that have lined up with LNG Canada have been conditionally awarded C$620 million in contracts, of which more than C$175 million in contracts and sub-contracts have been issued.
“There is far too much at stake for LNG Canada not to defend our project,” Caditz said. “LNG Canada respects the rights of individuals to peacefully express their point of view, as long as their activities don’t jeopardize the safety of people and are within the law.”
Protest camp dismantled That was an indirect reference to a protest camp established by Unist’ot’en leaders to close off access to a Coastal GasLink worksite. That protest camp was dismantled Jan. 11 after the Royal Canadian Mounted Police arrested 14 protesters.
The RCMP and hereditary leaders agreed at that time to a deal that will comply with an interim court injunction that expires on May 31.
Majority stake for sale Apparently TransCanada is prepared to retreat from its position as sole owner of the C$6.2 billion Coastal GasLink pipeline, having hired RBC Capital Markets to manage its plans to sell a majority stake in the line.
In a filing with the National Energy Board, Coastal GasLink said “third-party joint venture partners could acquire up to 75 percent of the equity in the ownership structure. Assuming a transaction proceeds, one or more arm’s-length third parties will hold the majority of the equity.”
Crystal Smith, chief councilor of the Haisla Nation, said her First Nation is interested in becoming a co-owner.
“Any advancement that we could make to have a social impact on our communities is possible.
Karen Ogden-Toews, chief executive officer of First Nations LNG Alliance, said her organization is leading efforts by elected chiefs to buy into Coastal GasLink, challenging protests by hereditary chiefs.
She said all elected councils “see responsible LNG development in BC as a way out of poverty, as a source of revenues that will enable First Nations to tackle their huge social issues and as a path towards employment, education, income, self-government and economic reconciliation.”
Bill Gallagher, an attorney who examines conflicts between First Nations and energy companies, told the Globe and Mail that elected aboriginal communities “would probably want somewhere totaling a 10 percent stake as an entry level.”
A TransCanada spokesman some company officials are “in the early stages of discussions as we seek investors to take a stake in CGL,” though he would not cross the line into any confidential matters.
TC Energy The offer of a pipeline stake coincided with TransCanada’s disclosure that - assuming shareholder approval - it will rebrand itself as TC Energy, hoping that will “help to further unite our employees and will enable us to better connect with our diverse stakeholders,” said Chief Executive Officer Russ Girling.
Jennifer Rowland, a St. Louis-based analyst for Edward Jones, said some of the company’s investors have “grown leery of investing in Canada. I think this is a way to de-emphasize Canada, quite frankly.”
Calgary-based TransCanada has 3,500 employees in Canada, 3,200 in the United States and 300 in Mexico and is involved in pipelines, power generation and energy storage operations.
About 52 percent of the company’s earnings before interest, taxes, depreciation and amortization were expected to flow last year from the U.S. compared with 40 percent in Canada.
A company spokesman said, “we continue and plan to remain a Canadian-based corporation,” although some observers have suggested that moving company headquarters to the U.S. would make it easier for TransCanada to advance projects such as Keystone XL.
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