TC Energy Partners with First Nations on Coastal GasLink Pipeline Investment

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TC Energy Corp. has finalized an agreement with five First Nations, granting them an economic interest in the Coastal GasLink pipeline, which transports natural gas to the LNG Canada facility in Kitimat, B.C. This deal marks a significant step towards Indigenous economic involvement in resource projects.

CALGARY, ALTA. — TC Energy Corp. has successfully completed a deal that grants five First Nations an economic stake in the Coastal GasLink pipeline, a crucial infrastructure project that transports natural gas from northeastern British Columbia to the LNG Canada plant and export terminal located in Kitimat, B.C. The financial specifics of this agreement have not yet been disclosed.
François Poirier, the president and chief executive of TC Energy, expressed the significance of the deal in a news release on Tuesday, stating, "This agreement turns years of partnership into long-term economic opportunity and shared prosperity." The partnership involves the FN CGL Pipeline Ltd. Partnership, which includes the Haisla Nation, Halfway River First Nation, McLeod Lake Indian Band, Saulteau First Nations, and West Moberly First Nations.
Chief Roland Willson of West Moberly First Nations commented on the importance of this investment framework, saying, "This investment framework recognizes the importance of partnership, financial certainty, and shared prosperity, while supporting our communities’ ability to make decisions about our own economic future."
TC Energy operates the Coastal GasLink pipeline and maintains a 35 percent interest in the project. The remaining interests are held by KKR & Co. and Alberta Investment Management Corp. on behalf of certain clients. This agreement is the first of two planned Indigenous investment transactions concerning the Coastal GasLink pipeline, with a second deal expected to be finalized in the fourth quarter of this year.
In 2022, TC Energy announced that it had signed option agreements to sell a 10 percent equity stake in the pipeline to Indigenous communities situated along the project corridor. Recently, TC Energy also revealed plans to enhance the existing capacity of the 670-kilometre Coastal GasLink pipeline. This expansion involves the addition of new compressor stations and upgrades to existing facilities.
For the second phase of the pipeline project, LNG Canada, which is owned by Shell Canada and four Asian partners, will lead the construction efforts. This arrangement is designed to minimize spending and mitigate cost and schedule risks for the owners of Coastal GasLink. Despite this collaboration, the partners of Coastal GasLink will continue to serve as the owners and operators of the pipeline.
Construction for the pipeline's second phase is slated to commence in early 2027, with the pipeline expected to be operational by the early 2030s. This decision follows LNG Canada's announcement that it has granted final approval for the Phase 2 expansion of its facility, which will enable the shipment of liquefied natural gas across the Pacific. The first phase of the LNG Canada facility commenced operations in the summer of 2025.

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