TC Energy in CGL options deal with First Nations
Canada’s TC Energy said March 9 it had signed option agreements with two First Nations investment groups to sell a 10% interest in the C$6.6bn (US$5.1bn) Coastal GasLink (CGL) pipeline now under construction to deliver gas to the LNG Canada liquefaction terminal being built on BC’s northern coast.
In 2020, when it sold a 65% interest in CGL to a partnership of KKR & Co and Alberta Investment Management Corp (AIMCo), TC Energy set aside a 10% equity interest in the project to allow the 20 BC First Nations along the 670-km route of the pipeline to take an ownership interest.
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Those First Nations have since established two entities which together represent 16 of the 20 First Nations that have confirmed support for the option agreements: CGL First Nations Limited Partnership and the FN CGL Pipeline Limited Partnership.
“The finalisation of the option agreement represents a historic milestone in our desire to participate as equity owners in Coastal GasLink,” said chief Corrina Leween of the Cheslatta First Nation, which is part of the CGL First Nations investment group. “For many of us, this marks the first time that our Nations have been included as owners in a major natural resource project that is crossing our territories. This deal is important because it demonstrates the value First Nations can bring as true partners in major projects.”
The equity option will be exercisable once CGL enters commercial service – anticipated in 2023 – and remains subject to customary regulatory approvals and consents, including that of LNG Canada.