TC Energy Corporation TRP has finalized an Indigenous investment agreement for its Coastal GasLink (CGL) pipeline, creating an opportunity for five First Nations in British Columbia to participate in the long-term economic benefits of Canadian energy infrastructure. The agreement marks an important milestone in the company’s efforts to strengthen Indigenous economic participation while supporting the development of Canada’s natural gas export capabilities.
Five First Nations Secure Economic Interest in Coastal GasLink
Under the finalized agreement, Haisla Nation, Halfway River First Nation, McLeod Lake Indian Band, Saulteau First Nations and West Moberly First Nations will obtain an economic interest in the entity that holds TC Energy’s limited partner interest in Coastal GasLink. The investment vehicle, FN CGL Pipeline Limited Partnership, was established by the participating nations to pursue this opportunity.
The transaction is expected to provide these communities with predictable, long-term financial returns associated with TC Energy’s limited partner interest in the pipeline. It follows years of collaboration and efforts by the participating nations to establish an Indigenous-owned and financed investment entity.
The agreement is the first of two planned Indigenous investment transactions related to Coastal GasLink. A second transaction involving additional First Nations is expected to close in the fourth quarter of 2026.
Long-Term Partnership Supports Indigenous Economic Participation
The agreement builds on more than a decade of engagement between TC Energy and Indigenous communities. The company has worked with these communities to advance economic opportunities through employment, contracting, training and community investment.
According to TC Energy president and CEO François Poirier, the transaction converts years of partnership into long-term economic opportunities, allowing participating communities to generate predictable income and direct investments toward their priorities.
West Moberly First Nations Chief Roland Willson also highlighted the importance of financial certainty, partnership and shared prosperity. The investment framework provides Indigenous Nations with a stronger role in Canada’s energy future while supporting their ability to make independent decisions about economic development.
The transaction also aligns with Canada’s broader focus on Indigenous ownership in major energy and natural resource projects. By providing participating First Nations with an economic interest in established infrastructure, the agreement creates an avenue for them to share in the financial benefits associated with Canada’s energy exports.
Like TC Energy, Enbridge Inc. ENB and Pembina Pipeline Corporation PBA also strengthen their relationships with Indigenous communities through investments in Canadian energy infrastructure. Enbridge has facilitated Indigenous equity ownership in its Westcoast natural gas pipeline system, supporting long-term economic participation. In 2025, ENB completed an agreement enabling 38 First Nations in British Columbia to acquire a 12.5% equity interest in its Westcoast natural gas pipeline system for approximately C$736 million. Meanwhile, Pembina is partnering with the Haisla Nation to develop the Cedar LNG project in British Columbia. PBA’s project expands Indigenous involvement in LNG infrastructure while supporting Canada’s growing natural gas export opportunities.
Coastal GasLink Strengthens Canada’s LNG Export Potential
Coastal GasLink plays a significant role in connecting Canadian natural gas supplies with international markets. The 670-kilometer pipeline transports approximately 2.1 billion cubic feet of natural gas per day from northeastern British Columbia to the LNG Canada facility in Kitimat, where the gas is liquefied for export.
As the pipeline’s operator and co-owner, TC Energy is positioned to support growing demand for Canadian liquefied natural gas (LNG). The planned Coastal GasLink Phase 2 expansion is expected to nearly double the pipeline’s transportation capacity through additional compression and facility upgrades along the existing route.
The expansion follows LNG Canada’s final investment decision on its second phase, announced on Sept. 29, 2026. The broader LNG Canada project is expected to double the facility’s production capacity, strengthening Canada’s ability to supply global markets.
By expanding capacity through existing infrastructure, Coastal GasLink Phase 2 is intended to connect more Canadian natural gas to international customers without requiring the construction of an entirely new pipeline. The development is also expected to create opportunities for Indigenous and local communities through employment, contracting, training and skills development.
Indigenous Investment Complements Coastal GasLink Expansion
TC Energy’s finalized investment agreement reinforces the importance of Indigenous participation as Canada’s energy infrastructure expands. The transaction provides five First Nations with an opportunity to benefit financially from an established pipeline while strengthening their involvement in the country’s energy sector.
Meanwhile, Coastal GasLink Phase 2 offers the potential to increase natural gas transportation capacity and support LNG export growth. Construction is expected to begin in early 2027, with the expansion anticipated to enter service in the early 2030s.
Together, the Indigenous investment agreement and the planned pipeline expansion highlight TC Energy’s focus on connecting Canadian natural gas with global markets while creating longer-term economic opportunities for communities along the infrastructure corridor.
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This article originally published on Zacks Investment Research (zacks.com).
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
