This record-breaking deal grants Indigenous communities the largest equity stake in Canada's natural gas network
TC Energy Corp. is selling a minority stake in its Western Canadian natural gas transmission network to a consortium of Indigenous communities for $1bn, according to BNN Bloomberg.
The deal's total enterprise value, including debt, is $1.65bn, making it Canada's largest-ever Indigenous equity ownership agreement. The Indigenous communities will benefit from predictable, long-term cash flows from the pipelines, supported by federally regulated rates.
The Alberta Indigenous Opportunities Corp. (AIOC) backs the deal, which was negotiated by a consortium committee representing Indigenous communities across Alberta, British Columbia, and Saskatchewan.
At a news conference at TC Energy’s Calgary headquarters, Lee Thom, a councillor with the Kikino Metis Settlement of Alberta and a member of the consortium committee, highlighted the partnership’s significance.
“United, we have come to a place where we created a partnership that not only prioritizes our needs in our Indigenous communities but builds long-lasting investments into our communities that extend to generations far beyond mine and yours,” Thom said.
TC Energy CEO François Poirier called the deal an important and long-overdue step. “Indigenous ownership is the path to a more prosperous nation,” he stated.
“Indigenous ownership in Canada’s resource economy should be commonplace. It is the best way for industries across the nation to continue to operate and grow.”
Poirier also reflected on the missed opportunities of the past, noting how much more could have been achieved if such an approach had been adopted decades ago.
Energy companies have partnered with Indigenous communities for years, typically offering guarantees of construction jobs or financial benefits. However, these agreements often did not include full equity stakes.
This trend is shifting as Indigenous communities across Canada show increasing interest in acquiring equity positions in major projects to generate revenue and economic opportunities.
In 2022, Enbridge Inc. sold an 11.57 percent interest in seven northern Alberta pipelines to 23 First Nation and Métis communities for $1.1bn. Additionally, several Indigenous-led groups have expressed interest in purchasing an equity stake in the federally owned Trans Mountain oil pipeline.
This growing interest in equity ownership aligns with Canada’s commitment to reconciliation, which includes recognizing Indigenous people's right to economic self-determination.
Most of this activity has occurred in Western Canada’s energy sector, where infrastructure projects often take place on traditional Indigenous territories.
Energy companies benefit from these deals by securing the support and consent of Indigenous communities, which is increasingly essential for major projects.
Alberta Premier Danielle Smith noted the strong interest from Indigenous communities in the partnership. “An unprecedented number of Indigenous communities from Alberta, Saskatchewan, and British Columbia have already expressed their interest in being part of this partnership,” Smith said.
“This is a clear demonstration that many Indigenous people support our energy industry — they want to be part of it.”
Historically, Indigenous communities have faced challenges accessing the capital needed for major equity transactions. The AIOC, established in 2019, provides loan guarantees ranging from $20m to $250m for eligible projects.
In the TC Energy deal, the AIOC will provide a $1bn equity loan guarantee to support the Indigenous-owned investment partnership. Once finalized, communities will enter into definitive agreements as co-investors in the pipeline network, with each community deciding independently whether to participate.
The 2024 federal budget announced the creation of a national Indigenous loan guarantee program to help communities access capital and remove barriers to equity investment.
TC Energy expects the transaction to close in the third quarter of this year, subject to band council and settlement resolutions along with financing.
While TC Energy has plans to sell off assets to reduce debt, Poirier emphasized the significance of this deal for the company’s Indigenous reconciliation efforts.
“I’ll be honest with you, we have $100bn worth of assets. We could have picked any number of assets to reduce debt,” he said. “This is far more meaningful.”
