First HaiSea tug heads for BC. Our cost advantage on LNG exports. And more . . .

Our newsletter of 25 May 2023

Photo of tug
First HaiSea tug heading for BC

The HaiSea Wamis is en route to BC from Sanmar Shipyards in Türkiye.

It’s the first of five tugs for the HaiSea Marine fleet, majority owned by the Haisla Nation in partnership with Seaspan ULC.

It’s the world’s first fully-electric harbour tug. And it has just won the 2023 International Tug & Salvage Tug of the Year Award.

HaiSea will end up with three such electric harbour tugs, and two dual-fuel (LNG and diesel) escort tugs to serve visiting LNG carriers. These two escort tugs will be will be most powerful tugs on the West Coast. All five meet stringent green-marine specifications.

The tugboats’ design includes a cabin for each crew member, and with their own bathroom privacy. That’s to accommodate women sailors, and HaiSea Marine hopes to attract more women.

Meanwhile, at the tug’s new home berth, the LNG Canada project has entered the next stage of work, driving piles into the seabed.

This in-water work is expected to last four to eight weeks, with minimal public impacts expected. While impact hammers may be deployed, the piles will be installed using a vibratory hammer predominantly; these produce significantly less noise than impact hammers. The area will be actively monitored for marine mammals and acoustic levels.”

  • And the Gitga’at First Nation and LNG Canada broke ground for a marine emergency response and research facility at Hartley Bay BC.

 

Canada’s cost advantage for LNG exports

Andy Mah, a director of Advantage Oil & Gas (which is linked to the Nisga’a Nation’s Ksi Lisims LNG project) told the Canada Gas & LNG Exhibition and Conference that growing world demand for LNG offers ample opportunities for Canadian producers to sign long-term offtake deals with Asian buyers in particular.

And, he said, low upstream costs mean Canada can “can compete with the world’s leading natural gas producers” such as Saudi Arabia, Iran and Qatar.

Paul Sullivan of engineering company Worley added that, as well as that cost advantage in the feedstock gas price, Canadian LNG producers are razor-focused on reducing carbon intensity to the “lowest level.”

Stewart Muir, founder and CEO of Resource Works, told the conference that “2023 can potentially be a turning point for Canada’s West Coast.”

He noted that not just LNG but also incremental volumes of propane will be exported to Asia.

At the same time, though, Resource Works warned that Canadian complacency could risk a once-in-a-generation LNG opportunity, as BC LNG faces competition: “BC LNG faces competition on all sides as Alaskan and Mexican projects move forward.”

Resource Works noted that planners of an Alaska plant see its LNG exports going to countries in Asia to compete with Russia. “But – critically – that means also with BC.”

And it concluded with this: “If the BC and the federal government won’t loosen the red-tape choking domestic LNG proposals, they may find themselves losing out on a once-in-a-generation opportunity to fight climate change, contribute to meaningful economic reconciliation and secure a bright economic future for their citizens.”

Photo German Chancellor Scholz

LNG exports to Europe pushed

Prime Minister Trudeau may have said there has “never been a strong business case” for LNG exports to Europe, but others see an opportunity for Canada.

New Brunswick Premier Blaine Higgs went this month on a mission to Europe with hopes of attracting investor interest in Canadian LNG.

“I feel confident we would have investors with serious capital if we had an open door to do such projects. Europe’s need for energy is urgent. Canada can be part of the solution, but we just don’t get it here. There is a crisis that people in Europe feel directly. We are a resource- and energy-rich nation and we’re seen as a nation that is not doing its part. I intend to try and make this more of an issue.”

And our Alliance CEO, Karen Ogen, said Canada needs to start exporting our LNG — and that includes shipping it to Europe from the East Coast.

She told ‘The Huddle’ podcast from Atlantic Canada: “We’re seeing with the European energy crisis that  Canada is well situated geographically to be able to ship our LNG to the European countries. . . .  It will not only help our economy but also help the Indigenous economy as well.”

She noted that Alliance members include the the Miawpukek Nation from Newfoundland and Labrador. And while Canada may be saying no to LNG exports from the East Coast, “I understand they’re still working with Germany (and) the European countries yet. There’s a demand for it. Canada should be the one to say Yes to these projects.”

Germany’s call for our LNG is a golden opportunity for Canada, says Lisa Baiton, CEO of the Canadian Association of Petroleum Producers: http://ow.ly/NMyl50Or0gA

In a separate podcast, Kelly Ogle of the Canadian Global Affairs Institute talked with Eric Miller, president of the Rideau Potomac Strategy Group, about Miller’s paper on the role of natural gas in Canada’s lower-carbon future.

Meanwhile, the G7 nations pledge climate progress, but back ‘temporary’ use of natural gas. ‘We stress the important role that increased deliveries of LNG can play.’

Impact Benefit Agreements

  • Check out our updated Wayfinding Guide to IBAs, with insights from First Nations, government and industry leaders. Read it here:  http://ow.ly/y7Fc50OgaMx

Indigenous clean-energy news

ALSO IN THE NEWS

 DATES

This week

More in June

  • National Coalition of Chiefs Energy and Natural Resource Summit, June 11-12, Calgary: http://ow.ly/s7EH50NEGEC Speakers include our Alliance chair, Haisla Chief Councillor Crystal Smith, and our Alliance CEO, Karen Ogen.
  • The Global Energy Show, June 13-15, Calgary: http://ow.ly/UvTL50LjFlM
  • The First Nations Power Authority holds its Indigenous Cleaner Energy Forum, June 26-27, Saskatoon: http://ow.ly/NYMx50NVA1A

July

September

October

2024

  • The International Gas Research Conference, May 13-16. Our Karen Ogen is on the national organizing committee. Conference website: https://igrc2024.org/

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