TC Energy signs $1B deal to sell minority stake in pipeline to Indigenous groups

TC Energy Corp. says it has signed a $1 billion deal that will enable 72 Indigenous communities to take a minority stake in its Nova Gas transmission system and Foothills pipeline assets.

The Calgary-based energy company says the agreement is Canada’s largest Indigenous equity ownership agreement.

The deal is backed by the Alberta Indigenous Opportunities Corporation and was negotiated by a consortium representing Indigenous communities across Alberta, British Columbia and Saskatchewan.

1:52 Province expanding Alberta Indigenous Opportunities Corporation mandate

Under the agreement, the corporation will provide communities with a $1 billion equity loan guarantee to support an Indigenous-owned investment partnership.

Once finalized, the communities will enter into definitive agreements as co-investors in the 25,000-kilometre network of natural gas infrastructure.

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TC Energy says 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.