Six Nations Natural Gas a model of success

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Growth, innovation and prosperity are goals shared by virtually all Canadian companies, and provincial governments across the country are increasingly recognizing the importance of Aboriginal businesses and putting forth programs to foster their success is these areas.

The Ontario government, through its extensive 'Building Aboriginal Economies' strategy, is at the forefront of this trend. One aspect of their strategy is to increase the number of Aboriginal/corporate partnerships within the province, and to recognize existing, successful partnerships that might be used as models for future ventures.

In November 2001, the partnership between Six Nations Natural Gas Company Limited and Union Gas Limited was chosen as the winner of the second annual Ontario Aboriginal Partnerships Recognition Award.

"This partnership has had a very positive ripple effect throughout the community," said Ontario's Attorney General and Minister Responsible for Native Affairs, David Young. "Ontario is working with Aboriginal communities and the corporate sector to build market-driven partnerships to support our mutual goal of Aboriginal self-reliance, entrepreneurship and the creation of long- term employment."

Government's own research certainly demonstrates the need for such initiatives. The Royal Commission on Aboriginal Peoples has reported that the continuing fast Aboriginal population growth and the need to address high Aboriginal unemployment will require approximately 500,000 Aboriginal jobs by 2016. Although there are at present some 4,000 Aboriginal-owned businesses in Ontario, most of them are small, home-based operations in primary and traditional sectors such as fishing and trapping, transportation, agriculture, and contracting.

Six Nations Natural Gas, on the other hand, is one of a growing number of Aboriginal companies operating successfully in a more value-added economic sector. It is the first natural gas utility owned and built by a First Nation community in Canada, and as outlined by its General Manager, Nick Petruzzella, its achievements certainly warrant the recent recognition.

"We sell in excess of 4.5 cubic metres [of natural gas] a year, compared to our first year when we sold 250,000 cubic meters. At the end of our first business year we had about 150 customers, and now we have over 1,800."

The first year for Six Nations Natural Gas was 1989, when the council's then economic development manager put forth the idea of building a natural gas pipeline across the reserve. The utility company that had previously served the community was not particularly effective or efficient, and the need was certainly there.

"Prior to Six Nations Natural Gas being formed, there was another gas company that operated on one geographic portion of the reserve-about a quarter of the reserve was covered by it," explained Petruzzella. "It was old, and it was not well-maintained. It had reached its capacity in terms of gas that could be put through its system, and subsequently the number of customers that it could sell to.

"Our first invoices went out in January of 1991. We sent out 10 invoices at that time, and we've been growing ever since. In 1994, the Six Nations council eventually bought out the original gas company and merged it with Six Nations Natural Gas.

"Then, in 1995, the chance for a partnership with Union Gas developed-Union wanted to put a high pressure line across territory that was disputed in a land claim between Six Nations Band Council and the federal government. To circumvent any possibility of Six Nations getting this land and going to them later saying 'get your line out', Union Gas went to council and asked, 'Is there anything we can do to prevent this from happening.' The partnership was legalized in 1996.... Revenue and growth for both entities increased as a result of it, and there have also been increased learning and training opportunities for our Aboriginal businesses and people."

The partnership ha benefited both parties, as well as the neighboring community. Six Nations Natural Gas is able to meet its mandate to provide service to all community members and Union Gas has been able to expand its market and the gas line network. Goods and services are also purchased locally by the partners, helping the area's economy.

Located roughly one hour's drive away from many of Ontario's major centres (Toronto, Hamilton, Kitchener, and Fort Erie), Six Nations of the Grand River is the most populous Aboriginal community in Canada, with more than 20,000 members. This large customer base means that Six Nations Natural Gas is poised for continued growth.

"Our customers are mainly on Six Nations Reserve, but we also sell gas to Mississaugas of the New Credit, which is an adjoining First Nations community," said Petruzzella. "Growth is ongoing, because we still don't cover 100 per cent of our community. Also, with the way the energy markets are evolving in Ontario, we're looking as a strategy for the future to become an energy distributor rather than just a natural gas distributor."

"Partnerships between Aboriginal and Ontario companies and entrepreneurs are a fine example of how joint ventures can bolster economic development and growth for Aboriginal communities," said John Kim Bell, founder and President of the National Aboriginal Achievement Foundation, which established the Aboriginal Partnerships Recognition Award in co-operation with the provincial government.

"I am pleased that this initiative provided job training, real jobs and revenue generation for the community. By recognizing successful business partnerships through this award, it is an effective means for encouraging further joint ventures."