First Nations leaders call for larger stake in Trans Mountain pipeline

CALGARY — Some indigenous leaders are criticizing Ottawa’s plan to offer a 15% stake in the recently expanded Trans Mountain pipeline system, with some saying the proposal is “inadequate.”According to Bloomberg, Stephen Buffalo, president of the Indian Resource Council, said the Liberal government should have offered a much larger share.“We’ve come a long way but, you know, the 15% is somewhat a feeble attempt at economic reconciliation,” Buffalo said.“They should at least put 50% on the table.”On Tuesday, Canadian Finance Minister François-Philippe Champagne said that negotiations with First Nations over indigenous ownership stakes in the federally owned pipeline should have been completed years ago and that the government is now working to honour its previous commitments..Champagne added that the government has also offered indigenous communities a $2.5 million lump sum as a “goodwill gesture.”“This should have been done before, and that's why we're acting to make sure that people are duly compensated for the timeline,” Champagne said.“It's a very meaningful offer if you're talking about an existing asset which has been de-risked, very much in line with market practice.”Project Reconciliation, which advocates for full indigenous ownership, also criticized the latest proposal, with Steve Mason, the group’s top executive, saying First Nations “should own a material piece.”“When we say material, it should be a minimum of 30%,” he stated.Mason’s group has put forward a plan to finance a purchase through bonds backed by pipeline toll revenue, with proceeds directed to a sovereign wealth fund for participating communities.Other First Nations leaders, such as Dale Swampy, chief executive of the pro-development National Coalition of Chiefs, welcomed the offer, but added that there is room for indigenous groups to seek a larger share later..POLL: Majority of Canadians want Ottawa to keep Trans Mountain pipeline.“It’s a great offer,” Swampy said.“I think 15% allows you to gain some control over environmental monitoring, over who gets hired.”In 2018, the federal government bought the Trans Mountain system from Kinder Morgan for about $4.4 billion after the company had suspended work on the expansion, saying it would not risk committing more shareholder money to the project amid political uncertainty and opposition from BC’s government.First Nations subsequently formed a group to pursue ownership, but an earlier effort by Ottawa to sell them a stake stalled.Three years ago, Ottawa sent dozens of communities along or near the pipeline route a letter offering an unspecified share.Alberta Premier Danielle Smith said in 2024 that the government had been considering a stake of roughly 30%.Trans Mountain is the only oil pipeline connecting Alberta to the West Coast.In 2024, its expansion was completed at a cost of roughly $35 billion, increasing capacity to 890,000 barrels per day (bpd) and giving domestic producers greater access to overseas buyers, particularly in Asian markets.

First Nations leaders call for larger stake in Trans Mountain pipeline

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