TC Energy signs deal to sell minority stake in pipeline to Indigenous groups
CTV
TC Energy said on Tuesday that it will sell a minority stake in its Nova Gas transmission system and the Foothills pipeline assets for C$1 billion ($722.1 million) to certain indigenous Canadian communities as part of a plan to reduce its debt and fund investments.
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.
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.
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.
This report by The Canadian Press was first published July 30, 2024.
