Enbridge Inc. (NYSE:ENB) recently revealed that it is selling a stake in its West Coast natural gas system. Let’s shed some light on the development.
A pipeline of natural gas cutting through a rural landscape.
Enbridge Inc. (NYSE:ENB) is a midstream energy company that focuses on transporting and distributing oil, natural gas, and natural gas liquids. The Canadian company moves about 40% of the crude oil produced in North America.
The Canadian pipeline operator recently announced that it has entered into an agreement with an Indigenous-owned partnership representing 36 First Nations in British Columbia. According to the deal, Stonlasec8 Indigenous Alliance will pay C$715 million ($511.19 million) to acquire a 12.5% stake in Enbridge’s Westcoast pipeline, which stretches for 1,802 miles from northeast British Columbia to the Canada-U.S. border, with a capacity of 3.6 billion cubic feet of natural gas per day. The transaction is expected to close at the end of the second quarter of 2025. On closing, this will be the first major investment to receive a loan guarantee under the Canadian Indigenous Loan Guarantee Program, announced by the Government of Canada last Spring.
Following this agreement, Enbridge Inc. (NYSE:ENB) has now struck four equity deals with Indigenous groups as part of its Indigenous reconciliation program launched in 2022. Cynthia Hansen, Enbridge’s Executive Vice President and President of Gas Transmission and Midstream, stated:
“Enbridge’s Westcoast natural gas pipeline system is a critical piece of energy infrastructure that has been providing people with the energy they need for more than 65 years. This transaction provides an opportunity to build on our relationships with Indigenous communities and advance reconciliation.”
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