Enbridge advances historic equity ownership with First Nations on B.C. natural gas pipeline system
Enbridge Inc. has announced an agreement whereby the Stonlasec8 Indigenous Alliance Limited Partnership (the "First Nations Partnership"), which currently represents 36 First Nations in B.C., Canada, will make an investment of approximately CAD$715 MM in Enbridge's Westcoast natural gas pipeline system, resulting in the First Nations Partnership owning a 12.5% interest in that system, subject to certain closing conditions as well as customary closing adjustments.
The First Nations Partnership has reached an agreement with Canada Indigenous Loan Guarantee Corp. (CILGC), a subsidiary of Canada Development Investment Corporation (CDEV), to secure a CAD$400-MM loan guarantee to enable the transaction. Loan guarantees play an important role in advancing Indigenous involvement in essential energy infrastructure throughout Canada.
"Enbridge's Westcoast natural gas pipeline system is a critical piece of energy infrastructure that has been providing people with the energy they need for more than 65 years," said Cynthia Hansen, Enbridge's Executive Vice President and President of Gas Transmission and Midstream. "This transaction provides an opportunity to build on our existing relationships with Indigenous communities and help advance reconciliation."
"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 Stonlasec8 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."
"Enbridge's commitment to advance Indigenous ownership opportunities related to our existing and growing energy assets underlines our efforts to be the First Choice partner for the communities we serve. These partnerships – which are part of our Indigenous Reconciliation Action Plan – allow Indigenous communities to beneficially invest in our operations and play a greater role in shaping Canada's energy future," said Greg Ebel, Enbridge's President and CEO. "This transaction is one of several such partnerships we have undertaken in the last several years and we continue to explore additional opportunities for Indigenous partnerships."
"I want to thank everyone who contributed to making this historic and highly complex transaction possible. Today's announcement also underscores CDEV's role as a catalyst for transformative initiatives that benefit all Canadians," said Elizabeth Wademan, President and CEO of CDEV, the parent company of the CILGC. "We launched CILGC in record time with a commitment to operate at the speed of business. The CDEV team is proud of the leading role it played on this transaction, and for the partnership created through this deal."
"This loan guarantee is a testament to our commitment to fostering Indigenous economic reconciliation and ensuring that Indigenous Peoples have a meaningful stake in Canada's economic growth," said the Honorable François-Philippe Champagne, Minister of Finance. "We are proud to support First Nations in B.C. in this historic endeavor."
"This landmark agreement is a powerful example of how our new federal government is getting things done in Canada," said the Honorable Tim Hodgson, Minister of Energy and Natural Resources. "I am proud to support Indigenous leadership and resource development coming together to drive long-term economic prosperity and reconciliation for all Canadians."
The transaction is expected to close by the end of the second quarter of 2025, subject to the completion of required financing and the satisfaction of all conditions precedent to the transaction.
RBC Capital Markets acted as financial advisor to Enbridge and McCarthy Tétrault as legal counsel. TD Securities Inc. acted as financial advisor to the First Nations Partnership, Boughton Law as legal counsel and MNP as business and tax advisors.
About Enbridge's Westcoast natural gas pipeline system. Enbridge's Westcoast natural gas pipeline system is an essential piece of energy infrastructure that is capable of transporting up to 3.6 Bft3d of natural gas. Owned by Westcoast Energy Inc., a wholly owned subsidiary of Enbridge, this system stretches more than 2,900 kilometers from Fort Nelson in northeast B.C. and from Gordondale near the B.C.-Alberta border, south to the Canada-U.S. border at Huntingdon/Sumas. The natural gas transported on this pipeline system provides safe, secure and affordable energy that people rely on throughout B.C. and the Lower Mainland, Alberta and the U.S. Pacific Northwest.
Related News
Related News
- Three killed, two injured in accident at LNG construction site in Texas (U.S.)
- Update: How Germany is building up LNG import terminals
- TotalEnergies and partners launch the 2nd phase of Northern Lights CCS project
- Digital Exclusive: The value of experience—Why expertise matters in compressor overhauls and revamps
- Croatia's LNG terminal to auction 0.75 Bm3 of regasification capacity in May
Comments