Indigenous Investment in Canadian Energy Projects – See the Summary Here

Canada’s First Nations are buying stakes in Canadian energy projects at an accelerating pace as they seek economic benefits from projects on their land and companies look to raise capital.

Here are some of the opportunities and recent deals:

UPCOMING:

Trans Mountain: The Canadian government owns the C$34-billion ($25.06 billion) oil pipeline that runs from Alberta to the Pacific coast and plans to sell it, at least in part to First Nations.

Coastal GasLink: Operator TC Energy signed an option in 2023 to sell 10% of the British Columbia (B.C.) natural gas pipeline to Indigenous communities.

Mainline: Enbridge is open to Indigenous part-ownership in the North American oil pipeline network but any deal may be complex since the pipeline runs through both Canada and the U.S., said executive vice-president of liquids Colin Gruending.

B.C. Northwest Transmission Line expansion: BC Hydro is talking with K’uul Power, a consortium of First Nations, to buy 50% of the C$3-billion project.

RECENT DEALS

• Enbridge sold a C$1.12-billion minority stake in seven Alberta oil pipelines to a group of Indigenous communities in 2022.

• Suncor signed a memorandum of understanding with Fort McKay First Nation in March to assess a potential oil sands lease.

• Ksi Lisims LNG, a liquefied natural gas (LNG) export project in British Columbia, is being developed by Nisga’a Nation, Rockies LNG and Western LNG. Decisions by the B.C. and Canadian governments are expected in late 2024.

• Cedar LNG, an LNG export project in British Columbia, is majority-owned by Haisla Nation in partnership with Pembina Pipeline. Final investment decision is expected in mid-2024.

• Ontario electricity transmission and distribution company Hydro One created a model in 2022 to offer First Nations a 50% stake in all future large-scale transmission line projects.

(Reporting by Rod Nickel in Winnipeg, Manitoba Editing by Alistair Bell)