Opinion: Flexibility needed for successful Indigenous-energy partnerships – Calgary Herald

Aug 05, 2024

In June of this year, Pembina and partner the Haisla Nation announced a positive final investment decision (FID) for Cedar LNG, a floating facility that will export approximately three million tonnes of liquified natural gas each year, beginning in 2028. As we move forward together, the world’s first Indigenous majority-owned LNG project with one of the cleanest environmental profiles is now a reality.

Chief councilor Crystal Smith of the Haisla Nation has spoken about the significance of Cedar LNG to her community and their economic self-determination. Additionally, the project will increase access for Canadian lower carbon commodities to reach global markets and demonstrates a true commitment to Indigenous reconciliation by honouring the complementary strengths the Haisla Nation and Pembina each bring to the partnership. Cedar LNG will continue to celebrate the project we are developing, but it is equally important to recognize that our journey to this point brought challenges that required a creative and flexible approach.

Most opportunities for Indigenous ownership of energy projects in Canada have focused on existing operating assets – projects with steady revenue streams that support simple financing arrangements. Greenfield projects, like Cedar LNG, require years of pre-FID work to obtain regulatory approvals, commence engineering, procurement and construction work, and negotiate customer agreements, among other things. This work requires significant capital investment and risk acceptance. In order to progress Cedar LNG, Pembina made material at-risk financial commitments on behalf of the partnership prior to knowing if the project was viable, and without project or Haisla Nation financing in place. As a partnership, we worked through tough decisions together within a shared governance structure.

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