Enbridge and Indigenous Communities Enter $1.12 Billion Landmark Equity Partnership
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Enbridge and 23 First Nation and Métis communities entered into an agreement where the communities will acquire, collectively, an 11.57 percent non-operating interest in seven Enbridge-operated pipelines in the Athabasca region of northern Alberta for $1.12 billion.
A newly created entity, Athabasca Indigenous Investments (Aii), will steward this investment, which represents the largest energy-related Indigenous economic partnership transaction in North America to date.
“We are very pleased to be joining our Indigenous partners in this landmark collaboration,” said Al Monaco, president and chief executive officer of Enbridge.
“We believe this partnership exemplifies how Enbridge and Indigenous communities can work together, not only in stewarding the environment, but also in owning and operating critical energy infrastructure. We are looking forward to working with the Aii and deepening our relationship well into the future,” added Monaco.
This investment by Aii also fits well with commitments Enbridge made in its recently released Indigenous Reconciliation Action Plan (IRAP), building on a growing track record of engagement with Indigenous communities and employees. The IRAP incorporates advice into facility siting, environmental and cultural monitoring, employment, training and procurement opportunities and, most recently, financial partnerships such as the proposed Wabamun Carbon Hub.
Pipelines included in the transaction are the Athabasca, Wood Buffalo/Athabasca Twin, and associated tanks; Norlite Diluent; Waupisoo; Wood Buffalo; Woodland; and the Woodland extension. These assets are underpinned by long-life resources and long-term contracts, which provide highly predictable cash flows.
“On behalf of the Indigenous partners, we are proud to become equity owners in these high-quality assets which contribute to North American energy supply and security,” said Justin Bourque, president of Athabasca Indigenous Investments.
“Our partner logo theme — Seven Pipelines, Seven Generations — speaks to the long-term value potential of these assets, which will help enhance quality of life in our communities for many years to come,” added Bourque.
“This is a truly historic day for our communities in the Athabasca region,” said Chief Greg Desjarlais of Frog Lake First Nation.
“In addition to an opportunity to generate wealth for our people, this investment supports economic sovereignty for our communities. We look forward to working with a leading energy company like Enbridge, which shares Indigenous values of water, land and environmental stewardship,” added Desjarlais.
“To be involved in an Indigenous partnership that will bring ongoing benefits to our communities is very important to the Métis people of Alberta,” said Stan Delorme, chairperson, Buffalo Lake Métis Settlement.
“Today’s announcement marks a next step in our relationship with Enbridge and our neighbors in the Athabasca region,” added Delorme.
Closing of the transaction is expected to occur within the next month. The Alberta Indigenous Opportunities Corporation supported the transaction by providing Aii a $250 million equity loan guarantee.
About Enbridge
Enbridge safely connects millions of people to the energy they rely on every day, fueling quality of life through North American natural gas, oil, or renewable power networks and its growing European offshore wind portfolio. They’re investing in modern energy delivery infrastructure to sustain access to secure, affordable energy, and building on two decades of experience in renewable energy to advance new technologies including wind and solar power, hydrogen, renewable natural gas, and carbon capture and storage. They’re committed to reducing the carbon footprint of the energy they deliver, and to achieving net zero greenhouse gas emissions by 2050.
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