Indigenous Collaboration with TC Energy on Natural Gas Network Significantly Impacts Industry

August 3, 2024 TruthUSA

Commentary

The acquisition of a $1 billion stake in TC Energy’s natural gas pipeline network by an indigenous consortium is transforming the relationship between indigenous communities and resource companies in Canada. This deal, which is the largest indigenous ownership equity agreement in Canadian history, paves the way for future collaborations in various resource sectors. It signifies a significant shift in how indigenous people are perceived and engaged by enterprises involved in natural resource development.

To address the concerns of indigenous citizens affected by resource extraction projects on their lands, companies operating on Crown lands were required to conduct consultations. However, these often resulted in one-time payments to local indigenous bands to move them out of the way. Limited efforts were made to involve local people or their businesses, viewing indigenous communities as obstacles to be appeased rather than as valuable partners or assets.

In the Northwest Territories, companies were mandated to partner with indigenous groups. During my time working in the Mackenzie Delta region on oil and gas exploration projects, these partnerships typically involved making a deal with a local indigenous individual and allocating a small share of project revenues to them. While this distributed some wealth locally, true working partnerships were not established, and once the projects concluded, the relationships dissolved. These partnerships were largely symbolic.

The recent TC Energy deal changes this dynamic entirely. A consortium comprising 72 indigenous communities has become a significant shareholder in the company. Rather than being placated, these communities have been included at the table and now share a vested interest in the success of TC Energy’s operations. This former adversarial relationship has transitioned into a genuine partnership. The indigenous consortium stands to benefit from TC Energy’s prosperity, helping alleviate economic challenges in isolated indigenous communities.

This partnership is set to foster the growth and operation of TC Energy’s gas pipeline network, diminishing opposition from indigenous groups. Residents in areas affected by pipeline activities will no longer question, “What’s in it for me?”

Not everyone may welcome this partnership. Environmental activists opposed to oil and gas development will find themselves with fewer allies in their fight against progress. Activists from distant urban areas may face resistance if they try to obstruct a project in which the local indigenous band has a stake. These groups will no longer be able to claim to speak for local indigenous interests.

Indigenous partners will not condone irresponsible development in ecologically sensitive areas. Their input will now be sought to strike a balance between land preservation and extracting benefits for their communities.

The TC Energy partnership with the indigenous consortium does come with risks. The equity stake is being acquired through a loan guarantee from the Alberta Indigenous Opportunities Corporation (AIOC), a Crown corporation supported by the provincial government. If the deal falters and the indigenous consortium defaults on the loan, taxpayers will bear the financial burden. While the TC Energy partnership is less risky than the previous Keystone pipeline project, no loan is without its uncertainties.

Companies seeking to engage in resource extraction in Canada now have a pathway to gaining future approvals through collaborations with indigenous groups. This partnership model will benefit not only oil and gas companies but also forestry, fishing, and mining companies. As isolated indigenous communities witness the advantages of responsible resource development in their areas, they will pursue new partnerships.

For years, federal regulatory policies have impeded resource development in Canada. If projects were not halted altogether, they were often bogged down by extensive and burdensome regulations. Federal ministers will think twice about hindering or shutting down resource developments when indigenous leaders are ready to demand explanations for impeding business opportunities.

Projects must prioritize the interests of both the indigenous population and company shareholders. Through partnerships, these interests can now align for mutual benefit. The TC Energy collaboration with the indigenous consortium could stimulate a surge in new resource development, which could significantly bolster Canada’s economy.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.

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