Enbridge sells stake in Westcoast pipeline to B.C. First Nations group for $715M

The alliance is to invest $715 million for a 12.5 stake in the Westcoast system. The Canada Indigenous Loan Guarantee Corp. is providing the consortium a $400-million loan guarantee — the first such deal since Ottawa set up the program late last year.

“This is truly a transformational transaction,” said Elizabeth Wademan, president and CEO of Crown corporation Canada Development Investment Corp., which owns the Indigenous loan guarantee corporation.

“It actually represents the largest loan guarantee that will be issued ever, as well as the largest number of Indigenous nations participating.”

In March, the loan program was doubled to $10 billion and opened up to investments in all sectors. It had been initially set up to serve energy and other natural resource projects.

Enbridge has signed several deals with First Nations in recent years.

Last year, Enbridge and Six Nations Energy Development LP announced plans to develop a massive wind energy project in southeast Saskatchewan. The Seven Stars Energy Project, located near Weyburn, is slated to produce 200 megawatts of clean electricity, enough to fuel more than 100,000 homes for a year.

In 2022, a consortium of 23 First Nations and Métis communities agreed to acquire an 11.57 per cent stake in seven of Enbridge’s pipelines in the Athabasca oilsands region of northeastern Alberta for $1.12 billion. A provincial Crown corporation, the Alberta Indigenous Opportunities Corp., provided a $250-million loan guarantee.

“We have this history that we’re able to build on and we continue to look at opportunities for Enbridge to advance Indigenous partnership investments across our systems,” said Cynthia Hansen, Enbridge’s president of gas transmission and midstream.

Jimmie, who is also chief of Squiala First Nation near Chilliwack B.C., said Indigenous support is “absolutely critical” for major energy projects to go ahead.

“I think (Enbridge) recognizes this and they recognize that without Indigenous participation, you’re going to find it more difficult to approach these types of projects,” he said.

Jimmie said the returns from Westcoast are to be distributed equally among the consortium partners, and each is to decide how they’ll be invested.

“But we all face similar challenges with infrastructure needs, housing needs, how we allocate for additional support for elders, support for youth,” he said.

“We look at everything that builds the community and how we can help support members in our communities and also help to advance economic development opportunities.”

Energy projects have long benefited corporations and provincial and federal governments, but now First Nations are able to reap some of the benefits, Jimmie said.

“The nations have never been a part of that decisions were made 65 years ago in a different world where participation wasn’t necessarily even contemplated.”

Enbridge CEO Greg Ebel was among the signatories to an open letter to Prime Minister Mark Carney shortly after the Liberals won last month’s federal election. In it, energy sector leaders outlined what they believe needs to be done for Canada to strengthen its economic sovereignty in the face of U.S. trade turmoil.

Among the industry’s asks was that Ottawa help Indigenous co-investment in energy infrastructure. The executives wrote that the doubling in the loan guarantee program was aligned with that recommendation, but that Canada needs to foster a competitive investment environment to ensure such programs are effective.

“We do need regulatory reforms, we need clarity, we need to be able to ensure that we have transparency in that process and speed in that process,” Hansen said.

This report by The Canadian Press was first published May 15, 2025.

Companies in this story: (TSX:ENB)

Lauren Krugel, The Canadian Press

by Canadian Press

Enbridge sells stake in Westcoast pipeline to B.C. First Nations group for $715M

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