PETRONAS Pipeline Interest 11

To understand the escalating pipeline conflict between the Wet’suwet’en First Nation land defenders and Coastal GasLink, it is necessary to trace the line of financial interests behind this CAD $6.2-billion investment. According to CTV News on December 26, 2019 TC Energy announced the sale of a 65% share of this pipeline project to Kohlberg Kravis Roberts & Co and Alberta Investment Management Corporation (on behalf a number of its clients). In the oil and gas industry, pipeline infrastructure, which is located between extraction facilities and refineries/ export terminals, are referred to as the the ‘midstream’. Coastal GasLink is, in fact, the 3rd Oil ‘midstream’ Canadian infrastructure project that Kohlberg Kravis Roberts & Co (KKR) has invested in. You could say that the Canadian oil and gas industry has delegated the most contentious aspect of the industry, the aspect that involves traversing First Nations territory, to KKR. So who are they?

Well, as Joyce Nelson informs us, KKR is a Wall Street ‘private equity’ firm with Canadian headquarters in Calgary. It is a massive financial entity that is in the business of investing in companies that are facing difficult scenarios, eventually re-selling the equity, to make large profits. In Western Canada KKR now owns the Encana Corp. natural gas pipeline and also has a stake in SemCams Midstream, which owns and operates 700 miles of natural gas pipelines in partnership with Energy Transfer. Energy Transfer is the company that, notoriously, subdued indigenous protesters from at the Standing Rock reservation in the U.S. in 2016 by marshalling effective state-supported repression.

In short, as nelson notes, “KKR not only has a primary position in the midstream natural gas industry of Western Canada, it also has scandalously partnered with a company well-versed in stopping indigenous protests”. Further, as if to underscore its access to the apparatus of the state, KKR has appointed retired four-star U.S. general and former director of the CIA, General David Petraeus as chair of KKR Global Initiative, its own in house intelligence agency.

Indeed, in the conflict over Coastal GasLink’s passage across unceded Wet’suwet’en territory, the hereditary Chiefs of the Gilseyhu, Laksilyu, Tsayu, Laksamshu, Gitdumdenet bands and their supporters are valiantly facing-off against the mighty governments of BC and Canada, as well as the combined corporate interests of TC Energy Corp, LNG Canada (Shell, Petronas, PetroChina, Mitsubishi Corp, Kogas Canada), Alberta Investment Management Corporation, as well as those of the insidiously tentacular Kohlberg Kravis Roberts & Co.

Image https://www.foxnews.com/politics/petraeus-resigns-after-affair-with-biographer-turned-up-in-fbi-probe-fox-news-confirms

https://www.ctvnews.ca/business/tc-energy-to-sell-a-65-per-cent-equity-interest-in-coastal-gaslink-pipeline-1.4744497

https://www.counterpunch.org/2020/02/12/wall-street-invading-wetsuweten-territory/

PETRONAS Pipeline Interest 9

Having arrested 6 Wet’suwet’en defenders on 6 Feb the RCMP arrested another 4 on Friday and 11 more on Saturday 8 Feb in the ongoing conflict between the Wet’suwet’en First Nation (Gilseyhu, Laksilyu, Tsayu, Laksamshu, Gitdumdenet) on one side and corporate interests (TC Energy Corp, LNG Canada, Shell, Petronas, PetroChina, Mitsubishi Corp, Kogas Canada)and the state (BC, Canada) on the other. The arrests are pursuant to an injunction granted by the BC Supreme court against the Wet’suwet’en blockade of on the $6.6-billion dollar Coastal GasLink pipeline project.

In extending the injunction on Dec. 31, Justice Marguerite Church is reported to have said, “the Wet’suwet’en people are deeply divided with respect to either opposition to or support for the pipeline project.” As I have noted before, the 5 Wet’suwet’en elected band councils which derive their authority on reservation lands from the Indian Act support the pipeline, while the Hereditary chiefs who claim title to wider territories on behalf of the Wet’suwet’en First Nation oppose it.

The Coastal GasLink pipeline, which crosses unceded Wet’suwet’en territory, is owned by TC Energy Corp (formerly TransCanada) with LNG Canada(Shell, Petronas, PetroChina, Mitsubishi Corp, Kogas Canada) as a venture partner, whose significance is indicated in TC Energy Corp’s own documents which describe it as a ‘customer’. In other words the pipeline is being built for LNG Canada with investment from LNG Canada, in which Malaysia’s PETRONAS corporation holds a 25% stake.

Image https://www.theglobeandmail.com/canada/british-columbia/article-wetsuweten-chiefs-vow-to-defy-coastal-gaslink-injunction/

https://www.saanichnews.com/news/rcmp-continue-to-enforce-injunction-against-wetsuweten-opposing-coastal-gaslink

https://www.straight.com/news/1355886/rcmp-prepares-crack-down-wetsuweten-nation-bottom-falls-out-lng-market-asia

https://www.tcenergy.com/siteassets/pdfs/investors/reports-and-filings/annual-and-quarterly-reports/2019/tc-2019-q3-quarterly-report.pdf

https://www.coastalgaslink.com/siteassets/pdfs/about/resources/cgl-local-contracting.pdf

PETRONAS’ Pipeline Interest 6

Remixed from a map produced by Rick Tingey, January 2016

These are the proposed pipelines connecting the interior Northern BC oil and gas fields (where PETRONAS’ North Montney gas fields are amongst the largest) to export terminals on provinces West coast (where PETRONAS owns 25% of the massive LNG Canada investment ). Three of these pipelines pass through Wet’suwet’en territory and the Wet’suwet’en are objecting and resisting. In their favour and against the push for these pipelines is the Delgamuukw Case (1997) in which the Supreme Court of Canada upheld the claim of 48 Gitxsan and Wet’suwet’en hereditary chiefs against BC and Canada to affirm Aboriginal rights, title to Aboriginal lands and the duty of governments to consult. 

Image: http://lnginnorthernbc.ca/index.php/proposed-projects/

https://www.ictinc.ca/blog/delgamuukw-gisdaway-reason-consult

PETRONAS’ Pipeline Interest 5

Unist’ot’en Camp – Stadium Pow Wow – a Tribe Called Red remix.

PLAY THIS VIDEO – You Don’t Live Here SO You Don’t Know! A Tribe Called Red’s most recent track remixed Unist’ot’en Camp style.

PETRONAS’ LNG Canada investment in Kitimat is totally dependant on the passage of the coastal GasLink pipeline which will transport natural gas from PETRONAS’ own North Montney fields.

PETRONAS’ Pipeline Interest 3

On 13, 2020, it was reported on the UNIST’OT’EN website that, in what would be an escalation of the conflict over CGL pipeline, the RCMP (Police) have set up an “exclusion zone” at 27km and are blocking media, Wet’suwet’en people, and food from getting up to their territory. The report claims that this is a violation of the Wet’suwet’en’s human rights, of Wet’suwet’en law, and of their constitutionally protected rights as Indigenous people. The report also highlights the fact that the ‘last time RCMP set up an ‘exclusion zone,’ they had authorized lethal force against unarmed people.”

I am observing these developments as a Malaysian resident of British Columbia and I cant help thinking of our own Malaysian indignation at the Indian state’s mistreatment of Kashmiris with curfews and media black outs. Malaysians must be made aware that our premier Crown Corporation stands to benefit from these apparently analogous acts of the Canadian state. As I have noted before Malaysia’s PETRONAS’ investment in Kitimat is totally dependant on this CGL pipeline which will transport natural gas from PETRONAS’ own North Montney fields. So once again, the interests of the exemplary Malaysian bumiputera (indigenous) led enterprise is contrary to the those of a group of indigenous people from British Columbia.

http://unistoten.camp/jan13/

https://economictimes.indiatimes.com/news/international/world-news/malaysian-pm-says-india-invaded-occupied-kashmir-at-unga/articleshow/71362388.cms

PETRONAS’ Pipeline Interest 2

According to a post on the UNIST’OT’EN website Wet’suwet’en Hereditary Chiefs have submitted a formal request to the United Nations to monitor RCMP (police), government and Coastal GasLink (CGL) actions on their traditional, unceded territory. This request follows the directive from the UN Committee on Racial Discrimination (CERD) requiring Canada to halt the pipeline project and withdraw RCMP from our territory in order to avoid further violations of Wet’suwet’en, constitutional, and international law. This submission reveals the Chiefs’ perception of the imminent threat posed by the RCMP and security forces currently surrounding Wet’suwet’en villages and lands.

As I have noted before Malaysia’s PETRONAS crown corporation holds a 25% stake in LNG Canada’s Kitimat development which is totally dependant on this CGL pipeline. This pipeline is intended to transport natural gas from Dawson Creek to Kitimat and much of this gas will come from PETRONAS’ own North Montney fields. As noted in the Globe and Mail, the UN Committee for the Elimination of Racial Discrimination says that it is imperative that all affected First Nations give free, prior and informed consent before the pipeline proceeds. So once again, the interests of the exemplary Malaysian bumiputra (indigenous) led enterprise is contrary to the those of a group of indigenous people from British Columbia.

https://unistoten.camp/unintervention/

https://www.theglobeandmail.com/canada/british-columbia/article-wetsuweten-coastal-gaslink-pipeline-rcmp-explainer/

PETRONAS’ Pipeline Interest 1

petronas

Malaysia’s PETRONAS crown corporation holds a 25% stake in LNG Canada’s CAD $ 40 billion project in Kitimat. This massive development is dependant on the Coastal GasLink pipeline that TransCanada is building to transport the natural gas from Dawson Creek to Kitimat. To realize the extent of PETRONAS’ interest in the completion of this pipeline, it is important to understand that much of the natural gas that will flow to Kitimat through the pipeline will come from PETRONAS’ own North Montney fields. While this pipeline has been approved by the B.C. and federal governments, it has been criticized by Amnesty International, the B.C.’s Human Rights Commission and the UN Committee for the Elimination of Racial Discrimination. As noted in the Globe and Mail, the UN committee says that it is imperative that all affected First Nations give free, prior and informed consent before the pipeline proceeds. So once again, the interests of the exemplary Malaysian bumiputra (indigenous) led enterprise is contrary to the those of a group of indigenous people from British Columbia.

Although there are reportedly signed benefit with most of First Nations involved in the passage of the pipeline, there is opposition from the Wet’suwet’en Nation who have built the Unist’ot’en healing camp in its path. As explained in the Globe and Mail, the opposition to the pipeline “hinges on an old question many First Nations in Canada face: Whether authority over resource development lies with elected band councils, hereditary leaders or both. Five elected Wet’suwet’en band councils, whose authority is coded in the federal Indian Act, signed agreements with Coastal GasLink, along with 15 other B.C. elected band councils that accepted the pipeline. But the Wet’suwet’en also have a system of five matrilineal clans and 13 houses, each of which has at least one hereditary chief. Together the chiefs oversee traditional territories that, like many First Nations lands in B.C., were never ceded by treaty. Two house chiefs supported the pipeline, only to have their titles stripped by other chiefs. Eight of the house chiefs say the risk of environmental damage to the land is too great to allow the pipeline, and are part of the movement against it.”

https://www.theglobeandmail.com/canada/british-columbia/article-wetsuweten-coastal-gaslink-pipeline-rcmp-explainer/

http://www.coastalgaslink.com/

PETRONAS Upstream and Down

gas productionOn March 25 2019 the BC NDP government passed a law conceding tax exemptions and commitments to low electricity prices to the industry. The NDP has, despite challenging the previous Liberals government on their concessions to the PETRONAS Lelu Island LNG  initiative, in fact often foreshadowed their present pro-LNG position. According to Carol Linnitt  this NDP concession amounts to an incentive package worth an estimated $5.35 billion (I presume this is calculated over the 40 year accounting period being used in appraising this development) to the LNG Canada consortium of which PETRONAS itself is a 25% stake-holder.

Although PETRONAS’ own $36-billion Pacific NorthWest LNG processing and shipping terminal on Lelu Island was aborted in the face of Lax Kwa’laams opposition and a collapsing market, this Malaysian crown corporation has persisted with its interest in downstream LNG development in British Columbia. Upstream, PETRONAS is presently one of  the largest producers of natural gas in the province and, according to Ben Parfitt, it is the “the single-largest subsurface rights holder of natural gas assets in Northeast B.C.” While PETRONAS is well set for prominence both upstream and downstream in the BC LNG industry it, there is a blockage for them midstream. Development of the connecting Coastal Gaslink pipeline has been retarded by determined resistance from the Wet’suwet’en First Nation, through whose territory in must pass.

Image Modified from: https://www.bcogc.ca/node/15405/download

https://www.timescolonist.com/news/local/lng-deal-not-good-for-b-c-ndp-leader-says-as-legislation-introduced-1.1999376

https://thenarwhal.ca/6-awkward-realities-behind-b-c-s-big-lng-giveaway/

https://thenarwhal.ca/the-resource-b-c-is-piping-to-alberta-that-nobody-is-talking-about/

http://www.coastalgaslink.com/

PETRONAS vs Wet’suwet’en


If PETRONAS goes ahead with its new LNG Terminal investment in BC, the Malaysian crown corporation will hold a 25% stake in LNG Canada’s CAD $ 40 billion project. This investment will be closely aligned with the Coastal GasLink pipeline that TransCanada is building to transport the natural gas from Dawson Creek to Kitimat. A further enmeshment to note that much of the natural gas will come from PETRONAS’ own North Montney fields. All the parties involved in this set of developments, the corporations, the provincial government and the federal government have their eyes on the burgeoning Asian market for the LNG .

There remain, however, some unresolved and under reported conflicts with First Nations in connection with both the terminal and the pipeline. Although there are reportedly signed benefit agreements with 19 of the 20 First Nations involved, there is some entrenched opposition. Some members of the Wet’suwet’en Nation have built the Unist’ot’en healing camp in the path of the pipeline. So once again, the interests of the exemplary Malaysian bumiputra (indigenous) led enterprise is contrary to the those of a group of indigenous peoples from British Columbia.

http://www.coastalgaslink.com/

http://vancouversun.com/opinion/columnists/vaughn-palmer-ndp-celebrates-petronas-return-but-lng-canada-hurdles-remain