Enbridge sells stake in Westcoast pipeline to B.C. First Nations group for $715M

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CALGARY — For more than 65 years, Enbridge Inc.’s Westcoast pipeline has been pumping natural gas through First Nations territories across British Columbia.

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Under a deal announced Thursday, three dozen of those communities are to see long-term financial benefits from the 2,900-kilometre system that stretches from B.C.’s far northeast to the Canada-U. S. border.

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“People often ask what economic reconciliation for Indigenous Peoples looks like,” said Chief David Jimmie, president and chair of Stonlasec8 Indigenous Alliance LP, which represents 36 B.C. First Nations.

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“This is it.”

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The alliance is to invest $715 million for a 12.5 stake in the Westcoast system. The Canada Indigenous Loan Guarantee Corp. is providing the consortium a $400-million loan guarantee — the first such deal since Ottawa set up the program late last year.

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“This is truly a transformational transaction,” said Elizabeth Wademan, president and CEO of Crown corporation Canada Development Investment Corp., which owns the Indigenous loan guarantee corporation.

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“It actually represents the largest loan guarantee that will be issued ever, as well as the largest number of Indigenous nations participating.”

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In March, the loan program was doubled to $10 billion and opened up to investments in all sectors. It had been initially set up to serve energy and other natural resource projects.

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Enbridge has signed several deals with First Nations in recent years.

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Last year, Enbridge and Six Nations Energy Development LP announced plans to develop a massive wind energy project in southeast Saskatchewan. The Seven Stars Energy Project, located near Weyburn, is slated to produce 200 megawatts of clean electricity, enough to fuel more than 100,000 homes for a year.

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In 2022, a consortium of 23 First Nations and Metis communities agreed to acquire an 11.57 per cent stake in seven of Enbridge’s pipelines in the Athabasca oilsands region of northeastern Alberta for $1.12 billion. A provincial Crown corporation, the Alberta Indigenous Opportunities Corp., provided a $250-million loan guarantee.

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“We have this history that we’re able to build on and we continue to look at opportunities for Enbridge to advance Indigenous partnership investments across our systems,” said Cynthia Hansen, Enbridge’s president of gas transmission and midstream.

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Jimmie, who is also chief of Squiala First Nation near Chilliwack B.C., said Indigenous support is “absolutely critical” for major energy projects to go ahead.

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“I think (Enbridge) recognizes this and they recognize that without Indigenous participation, you’re going to find it more difficult to approach these types of projects,” he said.

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Jimmie said the returns from Westcoast are to be distributed equally among the consortium partners, and each is to decide how they’ll be invested.