Tc Energy has agreed to divest its remaining 15% stake in the Northern Courier Pipeline (NCP ) in Canada, to Astisiy for about $1.3bn.

Astisiy consists of Canada’s Suncor and eight local communities in the Regional Municipality of Wood Buffalo (RMWB).

The Northern Courier Pipeline (NCP) pipeline system asset comprises two 90km pipelines.

Considering the Indigenous collaboration, Suncor obtained the rights to acquire a 15% stake in the pipeline from TC Energy in 2019.

This is a part of Northern Courier’s execution of $1bn long-term, non-recourse financing and sale of 85% stake in the pipeline by TC Energy to the Alberta Investment Management (AIMCO ).

The option has now been exercised by Suncor, three First Nations and five Métis communities.

Upon completion of the deal, Suncor will operate the pipeline.

Suncor expects the partnership to generate about $16m in gross revenues annually for its partners and provide reliable income.

TC Energy strategy and corporate development executive vice-president, and liquids pipelines president Bevin Wirzba said: “We are pleased that Indigenous communities will be provided the opportunity to participate in and benefit from the ownership of this asset, through Suncor exercising its previously-acquired right to purchase our minority interest.

“At TC Energy, we believe Indigenous communities must realize long-term sustainable benefits from energy projects.

“Expanding economic opportunities for Indigenous communities is an important way to advance reconciliation between Indigenous and non-Indigenous peoples.”

Subject to customary closing conditions and regulatory approvals, the transaction is planned to close in the fourth quarter of this year.

The pipeline is designed to transfer bitumen and diluent products from the Fort Hills mine and bitumen extraction facility to Suncor-operated East Tank Farm (ETF) located near the oil sand hub of Fort McMurray, Alberta.