The Northern Gateway Project by Enbridge is a controversial project as it affects the First Nations’ lands and riles up environmental concerns. The article “There will be no pipeline” brings up the issue of the pipeline being built by Enbridge, and how it will force the people of the Yinka Dene Alliance to move. The pipeline is scheduled to go through the Nak’azdli lands, which is a sacred and historic piece of land to the First Nations people. The First Nations people are now in control of this project as they state how their aboriginal rights are being violated in this article. This external factor will affect Enbridge’s business model as their business model may need to compromise to the needs of the First Nations and environmentalists.

Enbridge’s project is to create a cost efficient pipeline stretched from Alberta to northern British Columbia. Because of the barriers of entry put up by the First Nations, this will likely force Enbridge to switch costs, perhaps being forced to build around the land of the First Nations, which will not be cost effective. Government regulations put in place to help protect the First Nations’ land will thwart a direct entry through the Nak’azdli lands to the marine terminal in Kitimat, in northern British Columbia. The First Nations and environmentalists’ fight will affect the political and economical factors to their business model.

Sources:

http://www.theglobeandmail.com/globe-debate/first-nations-hold-the-key-to-the-northern-gateway-pipeline/article19213035/

http://www.vancouversun.com/news/There+will+pipeline/10122968/story.html