In the largest transaction of its kind, TC Energy Corp. has agreed to sell equity interest in two of its Canadian natural gas pipelines to an Indigenous-owned investment partnership.
The Alberta Indigenous Opportunities Corp. (AIOC) agreed to pay C$1 billion ($720 million) for a 5.34% equity interest in the Foothills system and the massive NGTL System, which moves most of Western Canada’s gas supply.
The agreement, said to be in the works for months, was negotiated by a consortium representing “specific Indigenous communities” across Alberta (AB), British Columbia (BC) and Saskatchewan. Up to 72 Indigenous communities could become equity owners in the natural gas infrastructure that spans Western Canada.
“This transaction marks a profound step toward economic reconciliation, providing an unmatched opportunity for sustainable growth and prosperity for the participants,” AIOC CEO Chana Martineau said.
“Indigenous ownership is the path to a more prosperous nation,” TC CEO François Poirier said. “As owners, Indigenous communities will have resources to invest for the future and greater economic sovereignty.”
The AIOC “is leading the world with its innovative approach to supporting Indigenous economic opportunity.”
The culmination of the equity investment was begun in 2023, when TC launched a strategy that would allow Indigenous communities the opportunity to buy minority stakes.
NGTL Delivers
The 15,513 mile-long NGTL system connects most of Western Canada’s natural gas production, centered in northeastern BC and AB. According to TC, “one in every 10 molecules of natural gas across North America comes through the NGTL natural gas infrastructure.”
During the first quarter, NGTL averaged 15.3 Bcf/d, up 0.7 Bcf/d from a year earlier. The system achieved a record 17.3 Bcf/d deliveries in January.
Foothills traverses 769 miles and includes Foothills BC and Foothills Saskatchewan systems. The pipes transport natural gas produced in Western Canada to markets in AB, BC, Saskatchewan, as well as to the United States.
Foothills receives gas from an interconnect with NGTL near Caroline, AB, and other interconnection points further south.
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The transaction, now slated to be completed by the end of September, is expected to give the Indigenous communities stakes in TC’s business tied to emerging LNG exports.
TC’s 2.1 Bcf/d Coastal GasLink (CGL) pipeline is complete, which was initially launched to serve the Shell plc-led liquefied natural gas export project in Kitimat, BC. LNG Canada’s first train is nearing completion.
CGL also could deliver gas to the Cedar LNG Partners LP export facility. The floating LNG project in BC, jointly owned by the Haisla Nation and Pembina Pipeline Corp., was sanctioned in late June.
When Cedar was sanctioned, Poirier had praised the deal and said it “redefined” the future of North American energy development.
“Through Indigenous ownership, Cedar LNG will create opportunities that will support Indigenous and local communities in northern British Columbia and deliver benefits to the world by meeting global demand for more secure, affordable and sustainable energy.”
