Tag Archives: Rail Blockades

Warren Buffett’s exit from $9-billion Quebec LNG project after rail blockades ‘a signal’ to investors

‘We’re not going to find $4 billion tomorrow morning, and we sure aren’t going to find it in the region,’ says Saguenay deputy mayor

Warren Buffett, one of the world’s most influential investors, has pulled out of a proposed $9 billion liquefied natural gas project in Quebec over concerns about railway blockades and infrastructure challenges.

The domestic oil and gas sector was already reeling after Teck Resources cancelled its $20.6 billion Frontier oilsands project in Alberta last month, partly over fears about rail blockades, and as other strategic investors have avoided the industry.

“Over the last month, a clear signal has been sent to businesses across Canada that the rule of law will not be upheld and that major projects cannot get built,” Conservative MP for Chicoutimi-Le Fjord Richard Martel said in an email, adding that Quebecers “risk losing out” on a multi-billion project.

GNL Quebec confirmed Thursday it had lost a major potential investor as it seeks to build the $9 billion Énergie Saguenay project to export Western Canadian natural gas from a proposed facility in Quebec.

“This was a major private investor who left at the last minute,” GNL Quebec spokesperson Stephanie Fortin said in an interview.

“The reason is the recent challenge in the Canadian political context.”

She declined to provide the name of the investor or confirm the identity, but Montreal-based La Presse cited unnamed sources when it reported Thursday the investor was Omaha, Neb.-based conglomerate Berkshire Hathaway Inc., which is controlled by Buffett.

The identity was confirmed by Saguenay deputy mayor Michel Potvin to the Montreal Gazette.

Potvin, who heads the local investment agency known as Promotion Saguenay, said Berkshire would have invested about $4 billion.

“We did not need this, especially at this stage of the project,” Potvin said. “We’re not going to find $4 billion tomorrow morning, and we sure aren’t going to find it in the region. So we have to roll up our sleeves.”

In recent weeks, rail blockades and protests have also snarled major infrastructure in Canada, disrupting port shipments and stalling the delivery of grains and other commodities across the country.

“Add it to the list,” Raymond James analyst Jeremy McCrea said of Berkshire Hathaway’s decision to pull out of the LNG project in Quebec.

Major resource companies such as ConocoPhillips Co., Total SA and Devon Energy Corp. have sold billions of dollars in assets in Canada in recent years as an exodus of investors have caused activity in the energy sector to plummet.

“Reported news of a large investor pulling out of a major LNG project echoes what we have been independently hearing from other investors,” Alberta Associate Minister of Natural Gas Dale Nally said in an email to the Financial Post. “It’s undeniable that weeks of railways and ports being blockaded would deter international investors from doing business in Canada.”

Quebec Premier François Legault has frequently called for action to end the rail blockades in recent weeks as they hurt his province and much of Eastern Canada. His office declined a request for comment Thursday about how the blockades affected investment in the LNG project proposed for Saguenay.

Berkshire Hathaway did not respond to a request for comment.

Financial analysts, investors and energy executives say losing funding from Buffett is a major blow to the industry, which has already seen other investors quit, because other fund managers take cues from the so-called Oracle of Omaha’s investment strategy.

Buffett is the fourth-richest man in the world with an estimated net worth of US$81.2 billion and he built Berkshire Hathaway into a $508-billion conglomerate over the past few decades.

Berkshire Hathaway continues to own shares in Calgary-based oilsands producer Suncor Energy as well as U.S. energy companies Occidental Petroleum and Phillips66.

But the company’s decision not to invest in Énergie Saguenay “sends a signal that all governments and particularly the federal government should pay attention to,” said Tristan Goodman, president of the Explorers and Producers Association of Canada, which represents mid-sized oil and gas companies.

“We have to have foreign investment,” Goodman said. “We do need to ensure that major infrastructure projects can be built across the country.”

In addition, Berkshire Hathaway’s reported decision not to invest in a Canadian infrastructure project – even when other firms like Teck have pulled out of major projects – is particularly troubling because the company has a history of spending money when other investors are fearful.

“He’s a contrarian, which makes it even more of a message,” said Martin Pelletier, chief investment officer with TriVest Wealth Counsel Ltd. in Calgary.

GNL Quebec’s Fortin said the company is looking for additional investors for the project, which is expected to create 6,000 direct and indirect jobs across in Quebec during construction.

“I cannot say where our new investor will come from,” Fortin said, noting that publicly losing a strategic institutional investor “will make it harder” to find more investors.

She said the company still has 15 other unnamed investors in the project but will continue looking for more investors.

Still, she said, the company’s timeline for Énergie Saguenay has not been compromised. GNL Quebec is planning to make a final investment decision on the project at the end of 2021.

By Geoffrey Morgan, the Financial Post, March 5, 2020.

[SOURCE]

Photo credit: Ryan Remiorz/The Canadian Press

Police lay charges after arrests at Tyendinaga rail blockade

Ontario Provincial Police officers make an arrest at a rail blockade in Tyendinaga Mohawk Territory, near Belleville, Ont., on Monday Feb. 24, 2020. THE CANADIAN PRESS/Adrian Wyld

By Ted Raymond – CTVNewsOttawa.ca

OTTAWA — Ontario Provincial Police have announced the charges laid against ten people who were arrested Monday at the rail blockade in Tyendinaga, Ont.

The rail blockade was set up in solidarity with Wet’suwet’en hereditary chiefs in northern B.C., who oppose a natural gas pipeline project in their territory. Demonstrators in Ontario were demanding the RCMP leave Wet’suwet’en territory.

The arrests came the morning of Feb. 24, about eight hours after a midnight deadline passed calling on demonstrators to end their blockade, which had stymied rail service in the area for 19 days.

Police say they were notified at 8 a.m. ET that the injunction regarding the blockade would be enforced. Police claim they told demonstrators to leave and warned they could be arrested if they did not comply.

Officers and demonstrators scuffled at the blockade briefly before arrests were made. Police say one person was injured and was taken to hospital for treatment. Their injury was described as minor and they have since been released.

All ten people were charged with mischief over $5000 and disobeying a court order, as well as a Railway Safety Act charge of entering land where line work is situated.

Three people are additionally charged with resisting arrest. One person is also facing a charge of obstructing police.

All ten have been released on bail and are due in court in Napanee, Ont. March 24.

Since the arrests, protests have been held across Canada, including in Vancouver, Winnipeg, and Ottawa.

In Tyendinaga, protesters set fire to the tracks at one point.

Later, wooden pallets were ignited next to the tracks.

Police in Ontario say their investigation into the protest activity is ongoing.

“The OPP will continue to engage in dialogue, with a reasoned and tempered approach, and proper use of police discretion,” the police service said in a press release.

Charged are:

  •  Aaron Maracle, 36, of Ottawa, Ont.
  •  Corey Jay Jocko, 33, of Akwesasne, Ont.
  •  Tommy Gill, 34, of Odanak, Que.
  •  Harley Moses David, 31, of Akwesasne, Ont.
  •  Trevor Spencer, 45, of Belleville, Ont.
  •  Harry Joseph Benedict, 30, of Akwesasne, Ont.
  •  Nicholas Kolbasook, 25, of Akwesasne, Ont.
  •  Nathan Strongitharm, 34, of no fixed address
  •  Jacob Sharpe, 24, of Tyendinaga Township, Ont.
  •  Stewart Americanhorse, 43, of Ohsweken, Ont.

Kolbasook, Strongitharm, and Sharpe are facing additional charges of resisting arrest. Americanhorse is facing an additional charge of obstructing police.

During testimony at the House of Commons public safety and national security committee, Conservative MP Doug Shipley asked Public Safety Minister Bill Blair, on behalf of a constituent, if the rail blockades constitute an act of terrorism.

Blair said they are not.

With files from The Canadian Press

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CN, CP trains sharing rail lines to keep supplying Canada during blockades

Two CN locomotives sit idle on the tracks near Napanee Ont. (Largs Hagberg/Canadian Press)

Federal government kept the ‘rare’ arrangement under wraps, fearing the blockades would spread

Quiet talks brokered by a government desperate to stop a growing economic threat led to two rail rivals coming together with a workaround to bypass the Tyendinaga blockade site.

Since last week, Canada’s two largest railways — CN and Canadian Pacific — have been quietly sharing their rail lines to transport essential supplies to communities in need, according to multiple government, CN and industry sources.

Protests by the Mohawks of Tyendinaga crippled passenger and freight train traffic on CN’s line near Belleville for more than two weeks in solidarity with anti-pipeline protests in northern B.C against the construction of the planned Coastal GasLink pipeline. Ontario Provincial Police officers on Monday arrested 10 demonstrators to get service back up and running on the line.

But as a result of what multiple government sources are describing as a very “rare” collaboration between the two rail giants, CN trains have been circumventing blockades using alternate routes — some through the U.S. — to continue deliveries to Quebec and Maritime communities facing shortages of essential goods such as propane, chemicals for water treatment facilities and animal feed.

Transport Canada and Transport Minister Marc Garneau’s office approached the two companies and helped to negotiate the rail-sharing deal — which is still active in parts of the country dealing with blockades.

Garneau said today the collaboration will not take care of the freight backlog completely, but it will help.

“It does give us some extra wiggle room,” he said in French outside today’s cabinet meeting. “But eventually we want all the barricades to come down.”

A Canadian Pacific Railway employee walks along the side of a locomotive in a marshalling yard in Calgary. (Jeff McIntosh/Canadian Press)

The deal was kept under wraps by all involved; even the industries affected weren’t told about the arrangement. The Retail Council of Canada told CBC News it didn’t know about the deal. Neither did associations representing propane suppliers in Quebec and across Canada. The groups had been warning of looming supply shortages in Quebec and Eastern Canada, where families, farmers and companies have been rationing goods. Many households use propane to heat their homes and barns.

Government sources say they didn’t advertise the deal, fearing that more blockades could pop up in response.

Prime Minister Justin Trudeau hinted at the CN/CP arrangement yesterday on the way into question period in the House of Commons.

“Over the past number of days we’ve been working with rail carriers to ensure that many trains continue to use alternate routes to get through and that’s one of the reasons we’ve been able to avoid some of the most serious shortages,” said Trudeau.

Karl Littler, senior vice president, public affairs, of the Retail Council of Canada, learned about the arrangement from CBC News and commended it.

“We’re talking about foods, we’re talking about fuel to keep people heating in what can be a cold winter,” said Littler. “You’re talking about a lot of stuff that Canadians need everyday. I think it’s the responsible thing to look to see what alternative channels exist and if that means collaboration in these circumstances, so much the better.”

One CN conductor said they witnessed how covert the operation has been. The source said they saw specially trained CN workers use CP engines, with that company’s logo on them, to haul unmarked CN cargo.

CP told CBC News it didn’t have a comment to add. CN also isn’t commenting on the deal, saying only that it’s “pleased the illegal blockade in Tyendinaga has come to an end.”

“We are also monitoring our network for any further disruptions at this time,” said CN spokesperson Jonathan Abecassis in a statement.

By: Ashley Burke · CBC News · Posted: Feb 25, 2020

[SOURCE]

Arrests made at rail blockade near New Hazelton, tires slashed on RCMP cars

RCMP before the arrests at the rail blockade near New Hazelton, north of Smithers, B.C.. on Monday evening. (Photo: Dinize Ste ohn tsiy (Rob)/Twitter)

Arrests made, tires slashed on patrol cars: RCMP

VANCOUVER — A First Nation leader says he was among several people arrested Monday night at a blockade outside New Hazelton on territory that neighbours the Wet’suwet’en Nation.

Hereditary Chief Spookwx of the Gitxsan Nation said Tuesday three other hereditary chiefs were also taken into custody as the RCMP broke up the demonstration on a CN Rail line in northern British Columbia.

The RCMP said 14 people were arrested.

A similar blockade was set up by the Gitxsan earlier this month and removed as a show of good faith on Feb. 13, but Spookwx said the protest resumed because the RCMP have not acted quickly enough to leave the Wet’suwet’en’s traditional territory where a natural gas pipeline is under construction.

Elsewhere in B.C., anti-pipeline protests blocked an intersection that serves as a key entry point to the port of Vancouver, and a group of protesters remained at the B.C. legislature.

Vancouver police told the demonstrators to move out of the intersection at the port or risk arrest for violating a court injunction, and most of the estimated 70 protesters had moved to the sidewalk.

Commuter rail service was moving again between Vancouver and the Fraser Valley after demonstrators blocked rail tracks late Monday afternoon, saying they were acting in support of Wet’suwet’en hereditary chiefs opposed to the Coastal GasLink pipeline.

Following his arrest on Monday night, Spookwx said supporters blocked Highway 16, the main route through the region, until about 3:30 a.m. when all the people arrested were released.

Spookwx, who also goes by Norm Stephens, said First Nations across Canada must act together as sovereignty issues raised by the construction of the pipeline are addressed because “their rights are ultimately at risk here.”

“The First Peoples of Canada should be treated with respect,” he added.

At least two dozen people blocked the tracks west of New Hazelton, the RCMP said in a statement.

One train reportedly nearly hit a male on the tracks, just before CN Rail was made aware of the blockade, the statement said.

The RCMP enforced the injunction at the request of CN Rail and the Mounties said those arrested were released on the condition that they abide by the injunction order and attend an upcoming court date.

Before midnight, police officers noted the tires were slashed on four patrol cars parked across from the highway, which the RCMP is investigating.

“We would like to remind the public that any attempts to block rail tracks is extremely dangerous and unlawful,” Cpl. Madonna Saunderson said in the news release.

“Should they put themselves in harm’s way, protesters are not only putting their own lives at risk, they are also putting the lives of train operators, rail employees, responding police officers and members of the public at risk.”

The Canadian Press, published Feb. 25, 2020.

[SOURCE]

Injunction granted against rail blockade in Kahnawake, south of Montreal

The blockade in Kahnawake, south of Montreal, has been in place in since February 10, disrupting both freight and commuter rail services. (Graham Hughes/The Canadian Press)

But Mohawk Peacekeepers said they have no intention of enforcing court order

A Quebec court has ordered Mohawk protesters to dismantle a barricade erected along a rail line running through Kahnawake, south of Montreal.

The injunction takes effect immediately, but it was not immediately clear how it will be enforced.

At a public meeting in Kahnawake Monday night, the head of the Mohawk Peackeepers police service said it had no intention of carrying out a court order against the protesters.

On Tuesday, Premier François Legault raised the possibility that Quebec’s provincial police force, the Sûreté du Québec, would be involved in an operation.

“The barricades have to be dismantled for the good of the economy,” Legault said at an event in Montreal.

The blockade in Kahnawake has been in place in since February 8, disrupting both freight and commuter rail services.

Following Monday night’s community meeting in Kahnawake, the band council issued a statement applauding both the Quebec government and CP Rail for their patience, and for not having used the “confrontational tactic” of seeking an injunction.

Canadian Pacific Railway, which owns the rail line, filed the injunction request on Tuesday morning. Quebec’s attorney general is listed as an intervenor in the decision.

Protesters set up a blockade in the Lennoxville area of Sherbrooke, Que., on Tuesday. (Brigitte Marcoux/Radio-Canada)

Protests continue elsewhere in Quebec

This latest development comes as protests continued elsewhere in Quebec in support of Wet’suwet’en hereditary chiefs opposed to a pipeline in British Columbia and Mohawk activists arrested at a rail blockade yesterday in Ontario.

A few dozen people set up wooden pallets and camping gear along the line in the Lennoxville area of Sherbrooke, Que. One sign read: “Stand up. Fight back.”

As well, a blockade on the highway running through the Mohawk territory of Kanesatake and Oka, Que., 60 kilometres northwest of Montreal, was in place for a second day.

The mayor of Oka, Pascal Quevillon, said Tuesday morning school buses would be delayed due to the blockade, which has reduced Highway 344 to one lane.

“We hope that it doesn’t continue too long,” he said of the blockade.

Kanesatake resident Brigitte Beauvais said that partially blocking traffic is a peaceful way of expressing their support.

“It’s not anything aggressive. We’re not trying to, you know, fight with anybody. We’re just showing people that we’re in support with B.C. and Tyendinaga and they’re our brothers and sisters. And we’re just here to show that we’re supporting them,” she said.

On Monday, a spokesperson for the Sûreté du Québec said officers were “watching the situation very closely.”

With files from Kate McKenna and Radio-Canada’s Brigitte Marcoux

By: CBC News · Posted: Feb 25, 2020

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