- TC Energy (TSX:TRP) has revealed it has signed a C$1 billion deal to sell a minority stake in some of its assets to certain Indigenous communities
- The agreement will allow for 72 Indigenous communities to acquire an aggregate 5.34 per cent minority equity interest in the company’s NGTL System and Foothills pipeline assets
- The deal is backed by the Alberta Indigenous Opportunities Corp.
- Shares of TC Energy are down 0.31 per cent to $57.85 as of 11:06 am ET
TC Energy (TSX:TRP) has revealed it has signed a C$1 billion deal to sell a minority stake in some of its assets to certain Indigenous communities.
In a news release, the company stated that the agreement will allow for 72 Indigenous communities to acquire an aggregate 5.34 per cent minority equity interest in the company’s NGTL System and Foothills pipeline assets.
According to TC Energy, this is the largest Indigenous equity ownership agreement in Canada.
“As owners, Indigenous Communities will have resources to invest for the future and greater economic sovereignty. The Alberta Indigenous Opportunities Corporation is leading the world with its innovative approach to supporting Indigenous economic opportunity,” Francois Poirier, CEO of TC Energy, said in a statement. “TC Energy is proud to be a part of this historic agreement.”
The NGTL asset spans more than 24,000 kilometres and is the company’s natural gas gathering and transportation for the Western Canadian Sedimentary Basin. It also connects Western Canada’s natural gas production to domestic and export markets.
The company stated it expects the transaction to close sometime during Q3.
TC Energy is a Calgary-based company most known for its Keystone pipeline. Its segments include Canadian natural gas pipelines, U.S. natural gas pipelines and Mexico natural gas pipelines, as well as liquids pipelines and power and energy solutions.
Shares of TC Energy Corp. (TSX:TRP) are down 0.31 per cent to $57.85 as of 11:06 am ET.
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(Top photo of TC Energy’s NGTL System compressor station and pipeline right-of-way near Nordegg, Alberta: TC Energy)