A leading Canadian pipeline operator, Enbridge Inc., has announced selling a 12.5% stake in its Westcoast natural gas pipeline system to a partnership representing 36 First Nations in British Columbia for C$715 million ($511.19 million).

The Stonlasec8 Indigenous Alliance Limited Partnership secured the deal through a C$400 million ($ 286.9 million) loan guarantee from the Canada Indigenous Loan Guarantee Corporation, a subsidiary of Canada Development Investment Corporation. 

This marks the first major investment to receive a guarantee under the Canadian Indigenous Loan Guarantee Program, launched by the federal government last spring to support Indigenous participation in major projects.

The Westcoast pipeline is a vital energy artery that has operated within indigenous territories for more than 65 years. It stretches 1,802 miles (2,900 kilometres) from northeast British Columbia to the Canada-U.S. border, with a capacity of 3.6 billion cubic feet of natural gas per day.

Chief David Jimmie, President and Chair of Stonlasec8 and Chief of Squiala First Nation, hailed the agreement as a significant milestone. 

"Our Nations will receive sustained economic benefits from this asset, funding critical investments in housing, infrastructure, environmental stewardship, and cultural preservation," Jimmie said.

Enbridge's Executive Vice President and President of Gas Transmission and Midstream, Cynthia Hansen, also reiterated the significance of the project. 

She stated that the “transaction provides an opportunity to build on existing relationships with Indigenous communities and help advance reconciliation.”

Expected to close by the end of the second quarter of 2025, the deal represents Enbridge's fourth equity agreement with Indigenous groups since launching its reconciliation program in 2022.