& Tobago


Very usefull links


News links




Dow Jones

Oil price



Views and News






Canadian indigenous groups weigh pipeline deal to ease oil glut

The Canadian Press

Indigenous energy summit includes session on pipeline ownership options

- Six First Nations approached government on buying line
- Financing may come from bond market: Indian Resource Council

By Robert Tuttle / Bloomberg

Petroleumworld 01 17 2019

The Trans Mountain crude pipeline that Prime Minister Justin Trudeau's government bought from Kinder Morgan Inc. last year is getting interest from some indigenous groups hurt by Canada's oil price crunch.

Five or six First Nation communities have approached the federal government with a view to potentially acquiring the line, Stephen Buffalo, chief executive officer of Canada's Indian Resource Council, said in an interview at the Indigenous Energy Summit in Calgary.

Trans Mountain's expansion, which has stalled because of fierce opposition in British Columbia, is one of the projects that would help alleviate a glut that saw Canadian crude prices selling at a discount of as much as $50 a barrel to the U.S. benchmark last year.

“We'd like to see a consensus by the chiefs to at least put something on the table,” he said. “We have oil and gas producing nations that have expressed interest because the differential on the oil they have is hurting their communities.”

Trudeau's government agreed to pay $3.5 billion for the controversial project in a deal in May after Kinder Morgan gave up on fighting against lawsuits and government opposition in British Columbia, which the line crosses to take crude from Alberta's oil sands to the Pacific Coast.

Court Focus

While a purchase by indigenous groups “could be positive,” there are currently no direct talks on the matter as the government is focusing on responding to the court decision that stalled the project, Finance Minister Bill Morneau said in Ottawa.

“We welcome those discussions,” he said. “Those discussions would be appropriately held with indigenous peoples, as well as other potential owners, because we've said that this is not going to be a project, a pipeline, that will be owned over the long-term by the government.”

While Trudeau's move kept the project alive, it suffered a setback three months later when a Canadian court nullified the project's federal approval, forcing a restart of the regulatory process and pushing back construction by a year or more.

Environmental concerns include potential spills and fears that the line will heighten oil-tanker traffic in waters where killer whales live.

Alberta's oil sands are the world's third-largest source of crude reserves but the province's oil industry has struggled getting pipelines built to access markets in the U.S. and overseas. The bottlenecks prompted the provincial government to mandate a 325,000-barrel-a-day curtailment of output to support prices.

Bond Sale

If indigenous groups do eventually buy the project, a probable option to fund the purchase would be along the model used by Fort McKay and Mikisew Cree First Nations, which raised C$545 million ($410 million) through the bond market to buy a stake in an oil storage facility from Suncor Energy Inc. in late 2017, Buffalo said.

Indigenous investment in Trans Mountain might help make the project more palatable for the general public, Brian Schmidt, chief executive officer of Tamarack Valley Energy Ltd., told reporters.

“If First Nations invested in Trans Mountain and took a stake, I think it sends a strong signal across Canada,” he said.

— With assistance by Josh Wingrove


Original article



We invite you to join us as a sponsor. Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.


Story by Andrew Rosati and Alex Vasquez from Bloomberg.

bloomberg.com 01 15 2019


We invite all our readers to share with us
their views and comments about this article.
Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95, '98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1



Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2019, Elio Ohep A. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2019, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.