TC Energy says $1B sale of minority stake in pipeline to Indigenous groups is delayed

TC Energy Corp. says a deal to sell a minority stake in its Western Canadian natural gas transmission network to a consortium of Indigenous communities has been delayed.

The $1-billion agreement, announced in July, is meant to enable 72 Indigenous communities to take a 5.34 per cent stake in its Nova Gas transmission system and Foothills pipeline assets – comprising a combined 25,000-kilometre network of natural gas infrastructure.

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The Calgary-based pipeline company says the deal is delayed “due to an identified transaction structuring issue within the NGTL partnership.”

TC Energy says it is working to ensure the transaction “delivers meaningful distributions to Indigenous communities while upholding the fundamental value” of the assets involved.

The deal was backed by the Alberta Indigenous Opportunities Corp. and negotiated by a consortium committee representing Indigenous communities across Alberta, British Columbia and Saskatchewan.

Inclusive of debt, the deal has a total enterprise value of $1.65 billion, making it Canada’s largest-ever Indigenous equity ownership agreement.