TC Energy is selling a minority stake in it’s Western Canadian natural gas transmission network to a consortium of Indigenous communities for $1 billion.
The Calgary based company announced the deal Tuesday and will enable 72 Indigenous companies to take a 5.34 percent state in it’s Nova Gas transmission system and Foothills pipeline assets.
The deal is backed by the Alberta Indigenous Opportunities Corp and negotiated by a consortium committee representing Indigenous communities in Alberta, BC and Saskatchewan.
Indigenous communities across Canada are showing growing interest in acquiring equity positions in major projects and infrastructure as a way to generate revenue and economic opportunity for their people.
In 2022, for example, Enbridge Inc. struck a $1.1-billion deal to sell an 11.57 per cent interest in seven northern Alberta pipelines to 23 First Nation and Métis communities.
“We anticipate that the Indigenous investors will benefit from this partnership for some years to come,” said Chief Isaac Twinn, chair of the consortium committee and chief of the Sawridge First Nation near Slave Lake, Alta.
TC Energy said the transaction is expected to close in the third quarter of this year but is subject to receipt of band council and settlement resolutions along with financing.
