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March 10, 2022

TC Energy to sell 10% stake in Canadian pipeline project to Indigenous groups

All 20 First Nations have been offered the oppotunity to become partners in the Coastal GasLink natural gas pipeline project.

Canada-based TC Energy has offered a 10% stake in the Coastal GasLink natural gas pipeline to Indigenous groups, across the project corridor in the country.

The equity oppotunity is only available to the Indigenous groups that already hold existing agreements with the 670km long Coastal GasLink pipeline project.

For several years, environmentalists and some First Nations have been opposing the project, arguing that it will trespass on their traditional lands.

With the agreements, TC Energy intends to give more authority to the Indigenous groups.

TC Energy president and CEO François Poirier said: “We recognise that enduring relationships need to include long-term economic opportunities that support the resiliency of Indigenous communities.

“We continue to learn a great deal from these relationships and value the opportunity to become true partners with Indigenous communities throughout the life cycle of this project.”

As of now, the First Nations have incorporated two entities, which are the FN CGL Pipeline Limited Partnership, and the CGL First Nations Limited Partnership.

The entities represent 16 communities that have committed to the option agreements together.

The latest agreements are also contingent on the receipt of customary regulatory approvals and consent.

Being built in British Columbia, the Coastal GasLink pipeline will have an initial transport capacity of 2.1 billion cubic feet per day.

The project will transport natural gas from the Montney gas-producing region, near Dawson Creek, to the approved LNG Canada facility, near Kitimat.

TC Energy owns a 35% stake in the Coastal GasLink pipeline while KKR and Alberta Investment Management jointly own a 65% interest.

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