TC Energy Corp. (‘TC Energy’ or ‘the Company’) has announced signing of option agreements to sell a 10% equity interest in the Coastal GasLink Pipeline Limited Partnership to Indigenous communities across the project corridor.
The opportunity to become business partners through equity ownership was made available to all 20 Nations holding existing agreements with Coastal GasLink. The Nations have established two entities that together currently represent 16 communities who have confirmed their support for the option agreements: CGL First Nations Limited Partnership and the FN CGL Pipeline Limited Partnership. The formal establishment of these agreements comes from interest expressed by Indigenous groups across the project corridor to become owners in Coastal GasLink alongside Alberta Investment Management Corp., KKR, and TC Energy.
The equity option recognises the important relationship that TC Energy and Coastal GasLink have with the Indigenous groups along the approved pipeline route and the desire to be true partners. The equity option is in addition to 20 agreements Coastal GasLink has with Indigenous groups along the route which provide opportunities for contracting and employment as well as other long-term benefits. The equity option is exercisable after commercial in-service of the pipeline, subject to customary regulatory approvals and consents, including the consent of LNG Canada.
“The finalisation of the option agreement represents a historic milestone in our desire to participate as equity owners in Coastal GasLink. 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.”
Chief Corrina Leween, Cheslatta Carrier Nation which is a member of the CGL First Nations Limited Partnership Management Committee.
“For years we have watched industry and governments generate revenues from the operations of their projects, while we live with the impacts. This investment in Coastal GasLink will finally start to shift the landscape, aligning industry and Indigenous peoples’ interests over the entire life cycle of a project.”
Chief Justin Napoleon, Saulteau First Nations which is a member of the FN CGL Pipeline Limited Partnership.
“We are proud to advance our relationships with the Indigenous communities across the route through equity ownership in Coastal GasLink. Together, as business partners, we have the opportunity to learn, grow and change the way energy is developed in Canada. This is one of the ways we can advance reconciliation.”
François Poirier, TC Energy President and CEO.
“We recognise that enduring relationships need to include long-term economic opportunities that support the resiliency of Indigenous communities. We continue to learn a great deal from these relationships and value the opportunity to become true partners with Indigenous communities throughout the lifecycle of this Project.”
Bevin Wirzba, Coastal GasLink President.
Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/09032022/tc-energy-signs-equity-option-agreements-with-indigenous-communities/