TC Energy, Indigenous Partners Fall Out After End of Keystone XL pipeline

Natural Law Energy Inc., a group representing a number of Indigenous communities in Western Canada, is asking for “financial compensation for all the losses of income and the lost opportunities for future income” associated with an investment agreement signed in November 2020, according to a letter signed by Natural Law Chief Executive Officer Travis Meguinis and seen by Bloomberg News.

Natural Law agreed that year to invest as much as $1 billion in Keystone XL. United States President Joe Biden pulled a key permit after taking office in January 2021, squelching plans to complete the 830,000-barrel-a-day pipeline.

Natural Law’s memorandum of understanding with TC Energy included possible equity stakes in other projects, according to Meguinis’s letter. But no deals came to fruition and TC Energy informed Natural Law that it intends to end the investment agreement, the company said in an email.

“Following the termination of the Keystone XL Pipeline project, TC Energy sought but was unsuccessful in identifying other commercial opportunities for investment with Natural Law Energy that met our shared goals and interests,” Calgary-based TC Energy said in a statement emailed to Bloomberg. “We have a long-standing relationship with the signatory Nations and remain committed to working directly with each Nation to understand their priorities and seek future opportunities to work together.”

‘Bad faith’

Companies including TC Energy and Suncor Energy Inc. have turned to alliances and equity partnerships with Indigenous groups in try to overcome overcome opposition to building new projects. Energy infrastructure is seen by some people as a threat to Indigenous land and their traditional resources, though others back their involvement in pipelines as a way of alleviating poverty in those communities.

Bloomberg.com