Canada Transfers Trans Mountain Pipeline to Indigenous Ownership

Ottawa, May 22, 2024 – Ahead of Canada’s plan to transition the Trans Mountain pipeline to Indigenous ownership, the federal government is revising how it manages the pipeline, according to a notice published in the Canada Gazette on Wednesday.

The Canada Development Investment Corporation and Trans Mountain Corporation will no longer require authorization from the governor in council for transactions such as incorporating subsidiaries. This change aims to streamline operations and enhance competitiveness in the sector, facilitating Indigenous economic participation in the pipeline.

Canada acquired the Trans Mountain pipeline system in 2018. Initially, the pipeline had a capacity of 300,000 barrels of oil per day. Following an extensive expansion project, the pipeline can now transport approximately 890,000 barrels per day from Alberta to the Pacific coast.

The federal government’s investment in the pipeline, described in the Canada Gazette notice as a “necessary and serious investment in the national interest,” has significantly boosted the country’s GDP by $26.3 billion and generated “thousands of middle-class jobs.”

Despite its economic benefits, the Trans Mountain pipeline has been a source of controversy, particularly regarding its environmental impact. The expanded pipeline and related port activities are expected to emit around 400,000 tonnes of greenhouse gases annually, equivalent to the emissions from 95,000 gas-powered cars, according to the U.S. Environmental Protection Agency.

Several First Nations leaders have voiced concerns over the pipeline’s potential environmental effects. The chief of the Coldwater First Nation has highlighted risks to groundwater, while Secwépemc matriarch Miranda Dick has protested against the pipeline’s impact on local water resources.

Nevertheless, various Indigenous-led groups, including the Western Indigenous Pipeline Group, Project Reconciliation, and the Alberta-based Iron Coalition, have shown interest in acquiring the pipeline. This transition aligns with broader goals of increasing Indigenous participation in major economic ventures.

The expanded pipeline commenced commercial operations this month after enduring years of regulatory hurdles and construction delays. Since its purchase by Ottawa, the project’s cost has surged from $7.3 billion to over $34 billion.

Trans Mountain Corporation announced it expects to load the first vessel with oil from the expanded pipeline this month. On Monday, the tanker Dubai Angel docked at the Westridge Marine Terminal in Burnaby, B.C., preparing to load the initial cargo of crude oil from the newly expanded pipeline.

This strategic shift in management and ownership structure marks a significant milestone in the Trans Mountain pipeline’s history, potentially ushering in a new era of Indigenous economic empowerment and participation in Canada’s energy sector.