Natural gas company TC Energy has reached an agreement to sell a 5.34% stake in its Canadian gas assets to indigenous communities for C$1bn ($722.3m).  

The minority stake sale in the NGTL system and Foothills assets, which span 25,000km in western Canada, is supported by the Alberta Indigenous Opportunities Corporation (AIOC).  

A consortium representing indigenous communities from Alberta, British Columbia and Saskatchewan negotiated the agreement, enabling up to 72 indigenous communities to become equity owners. 

The assets are a crucial part of TC Energy’s network, connecting around 80% of natural gas production from the Western Canadian Sedimentary Basin to domestic and export markets.  

This basin is recognised as one of the world's largest natural gas reserves. 

The transaction's completion is anticipated in the third quarter of 2024, pending the approval of band council and settlement resolutions by the participating communities and the finalisation of financing arrangements. 

TC Energy president and CEO François Poirier said: “Indigenous ownership is the path to a more prosperous nation. 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. TC Energy is proud to be a part of this historic agreement.”  

Government of Alberta Minister of Indigenous Relations Rick Wilson said: “Alberta continues to lead on economic reconciliation with indigenous peoples. It is so exciting to see this historic investment partnership come together thanks to an unprecedented loan guarantee from the AIOC.  

“This will create significant new long-term revenue streams for the indigenous communities involved. The AIOC continues to break down barriers and build bridges by supporting indigenous ownership and inclusion in Alberta’s biggest projects. Many thanks to all the partners involved for working tirelessly to make this a reality.” 

TC Energy, headquartered in Calgary, is known for its Keystone oil pipeline.  

However, the company is currently restructuring to concentrate on natural gas transportation.  

This follows the recent dismissal of its $15bn claim by a free trade arbitration tribunal against the US Government over the Keystone XL pipeline project's cancellation.