TC Energy Corporation in its $1 billion Indigenous equity ownership agreement

On July 30, 2024, TC Energy Corporation announced an equity interest purchase agreement (Agreement) with an Indigenous-owned investment partnership for a minority equity interest of 5.34 per cent in the NGTL System and the Foothills Pipeline assets (together, Partnership Assets) for a gross purchase price of $1 billion. The Agreement is backed by the Alberta Indigenous Opportunities Corporation (AIOC) and was negotiated by a consortium committee (Consortium) representing specific Indigenous Communities (Communities) across Alberta, British Columbia and Saskatchewan. This results in an implied enterprise value of approximately $1.65 billion, inclusive of the proportionate share of the Partnership Assets’ collective debt.

This historic partnership will enable up to 72 Indigenous Communities closest to the Partnership Assets to become equity owners in the 25,000-kilometre highly integrated network of natural gas infrastructure assets spanning western Canada. Investment in these critical energy assets delivers access to long-term revenue sources that will help create meaningful change for Indigenous Communities.

TC Energy Corporation is a North American energy company with a focus on operating pipelines, storage facilities and power-generation plants in Canada, the United States and Mexico.

Osler, Hoskin & Harcourt LLP advised TC Energy Corporation with a team consisting of Frank Turner, Kelsey Armstrong, Ana Cherniak-Kennedy (Corporate), Edward Rowe, Kim Maguire (Tax), Danna Donald, Marissa Kirsh (Project Finance), Sander Duncanson (Regulatory, Indigenous and Environmental) and Bryce Kustra (Real Estate).