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Enbridge has agreed to divest an 11.57% interest in seven pipelines in the Athabasca region of northern Alberta, Canada, to a group of 23 indigenous communities in a deal worth C$1.12bn ($816m).

Athabasca Indigenous Investments (Aii), a limited partnership of 23 First Nation and Métis communities, will be responsible for acquiring the assets with funds from a private placement.

The pipelines covered under the transaction are the Wood Buffalo/Athabasca Twin and associated tanks, the Athabasca, Norlite Diluent, Wood Buffalo, Waupisoo, and Woodland pipelines, and the Woodland extension.

The deal represents North America’s largest energy-related indigenous economic partnership transaction.

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Alberta Indigenous Opportunities, a provincial Crown corporation, is providing a loan guarantee of C$250m for Aii to fund the latter’s equity stake purchase.

Athabasca Indigenous Investments president Justin Bourque said: “On behalf of the Indigenous partners, we are proud to become equity owners in these high-quality assets which contribute to North American energy supply and security.”

Enbridge said these pipelines are supported by resources and long-term contracts that provide ‘highly predictable cash flows’.

The acquisition is expected to provide Aii with a steady, long-term revenue. The transaction is planned to close within the next month.

Enbridge president and CEO Al Monaco said: “We believe this partnership exemplifies how Enbridge and Indigenous communities can work together, not only in stewarding the environment, but also in owning and operating critical energy infrastructure. We are looking forward to working with the Aii and deepening our relationship well into the future.

“This also fully aligns with our priority to recycle capital at attractive valuations, which can be used to fund numerous growth opportunities within our conventional and low carbon platforms.”