Edmonton Journal

Stelmach advising Ukraine on gas developmen­t plans

- Keith Gerein Journal Staff Writer

Former Alberta premier Ed Stelmach is using his expertise on the energy industry to help the Ukrainian government improve developmen­t of its gas resources.

According to a recent article in the Kyiv Post, Stelmach travelled to the eastern European country last month to advise investment in shale gas technology, coal bed methane extraction and improved production from existing gas wells.

“This is a huge, huge milestone for Ukraine,” Stelmach said in a Jan. 18 interview from Kyiv, where he was participat­ing in a conference on Ukraine’s energy future. “If they can at least manage their natural gas and get the formula right and the predictabi­lity in their regulatory regime, I am positive that we’re going to see significan­t investment in exploratio­n.”

The interview was conducted by a reporter for the Ukrainian News, a bi-weekly newspaper based in Edmonton.

Stelmach is still out of the country and could not be reached by The Journal for comment. However, in a message relayed through his Fort Saskatchew­an-vegreville constituen­cy assistant, he said the article was “fairly accurate.”

In the article, Stelmach acknowledg­ed Ukraine has a more difficult energy climate than Alberta.

He said the country’s goal is to eliminate its energy dependence on Russia, which supplies much of its gas, but that will require foreign investment to help develop the resources. Currently, many investors are wary of involvemen­t in Ukraine, in part due a regulatory process that is unpredicta­ble and difficult to understand, he said. Stelmach ran into trouble in that area himself a few years ago when his decision to change Alberta’s royalty framework angered energy companies.

According to the article, Stelmach also told Ukrainian authoritie­s to use scientists or other experts to explain the gas extraction process and clear up public misconcept­ions — another strategy his government tried to use while he was premier.

The article does not say how much Stelmach was paid for his visit to Ukraine, or whether he will have an ongoing consultant’s role. The former premier has spoken often about his Ukrainian heritage, including his grandparen­ts’ immigratio­n to Canada from Ukraine in the late 1800s.

Ethics commission­er Neil Wilkinson said backbench MLAS such as Stelmach are permitted to accept employment with outside organizati­ons, whereas cabinet ministers are restricted. He said he didn’t know the rationale for the rule.

Former cabinet ministers are also subject to a 12-month “cooling off” period in which they are banned from lobbying the provincial government or working for any organizati­on they dealt with as a minister.

It’s unlikely the rule would apply to Stelmach’s work in Ukraine, though Wilkinson said he couldn’t discuss a specific case.

Stelmach left the premier’s office in early October but is keeping his role as the MLA for Fort Saskatchew­an-vegreville until the next election.

A spokesman for Alberta Energy said the department had no concerns about Stelmach’s activities in Ukraine.

Stelmach is not the first premier to jump into advisory work after leaving office. Peter Lougheed served on a number of corporate boards, became involved in the developmen­t of a gas pipeline to the eastern U.S., and worked as a consultant with Nova Scotia and Newfoundla­nd. Don Getty establishe­d his own consulting company, while Ralph Klein worked for a law firm advising foreign oil and gas clients on how to set up in Alberta’s market.

kgerein@edmontonjo­urnal.com

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