B.C. natural gas giant, Enbridge, has struck a lucrative deal with 36 First Nations for ownership of its Westcoast gas pipeline.
On Thursday, Enbridge issued a statement announcing an investment of $715 million by 36 First Nations into Enbridge’s West Coast Gasoline in British Columbia.
A $400-million federal loan guarantee backs the sale of a 12.5 per cent stake in Enbridge’s Westcoast natural gas pipeline to the Stonlasec8 Indigenous Alliance Limited Partnership. This coalition of communities with ties to the pipeline’s land will purchase the stake in the 2,900-kilometre system, which transports gas from northeastern B.C. to the U.S. border.
“Today is a significant milestone for Stonlasec8 First Nations, and we are incredibly grateful to have the Government of Canada’s leadership and support to bring this deal to fruition,” said chief David Jimmie, president and chair of SALP and chief of Squiala First Nation.
“Enbridge’s Westcoast pipeline system is a legacy asset that has operated within our traditional territories for over 65 years. Now, our Nations will receive sustained economic benefits from this asset, funding critical investments in housing, infrastructure, environmental stewardship and cultural preservation. People often ask what economic reconciliation for Indigenous Peoples looks like. This is it.”
The federal backing comes via a $400-million loan guarantee provided by the Canada Indigenous Loan Guarantee Corporation, a new Crown agency operating under the Canada Development Investment Corporation. The deal is expected to close by the end of June.
Enbridge showered praise for the move as a part of its broader Indigenous economic engagement plan.
“This transaction provides an opportunity to build on our existing relationships with Indigenous communities and help advance reconciliation,” said Cynthia Hansen, Enbridge’s executive vice president and president of gas transmission and midstream.
“These partnerships—which are part of our Indigenous Reconciliation Action Plan Refresh—allow Indigenous communities to beneficially invest in our operations and play a greater role in shaping Canada’s energy future,” said Enbridge CEO Greg Ebel. “We continue to explore additional opportunities for Indigenous partnerships.”
Enbridge’s Westcoast pipeline system transports up to 3.6 billion cubic feet of natural gas daily to western Canada and the northwestern US.
This partnership follows Enbridge’s previous equity deals with Indigenous groups, including a 2022 sale of an 11.6% stake in Alberta pipelines to 23 First Nations and Métis communities for $1.12 billion, the Wabamun Carbon Hub project with five Indigenous communities (also in 2022), and a 2023 Saskatchewan wind energy project with Six Nations Energy Development LP.