Five First Nations Invest $65.3 Million in Coastal GasLink Pipeline

A group representing five First Nations has completed an investment deal for an interest in the Coastal GasLink pipeline, which transports natural gas from northeastern British Columbia to the LNG Canada plant in Kitimat. FN CGL Pipeline Ltd. Partnership announced on Tuesday that the five nations invested $65.3 million using their own funds.

Investment Structure and Ownership

The partnership includes the Haisla Nation, Halfway River First Nation, McLeod Lake Indian Band, Saulteau First Nations, and West Moberly First Nations. According to a news release, the members are contributing their own capital without government loan guarantees or borrowed money.

"Our Nations are making this investment with their own capital. No government loan guarantees, no borrowed money," said Chief Harley Chingee of McLeod Lake Indian Band. "It was a deliberate choice, the best way to secure maximum benefits from what we believe to be a sound commercial investment. The returns will now belong entirely to the communities, as will decisions as to how they are used."

Under the agreement, FN CGL and TC Energy collectively hold an indirect 35 per cent interest in the pipeline through a TC subsidiary. The remaining 65 per cent is held by KKR Co. and Alberta Investment Management Corp. on behalf of certain clients. TC Energy Corp. operates the pipeline.

Community and Corporate Statements

Chief Roland Willson of West Moberly First Nations stated that the framework supports community autonomy. "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," he said.

TC Energy chief executive François Poirier acknowledged the collaboration involved in the transaction. "This transaction reflects years of collaboration, leadership and determination by the Nations involved to create a long-term economic opportunity for their communities," Poirier said.

A spokesperson for TC Energy noted in an emailed statement that the structure "provides stable cash flows without typical equity volatility, helping support long-term planning and managing of community priorities." The spokesperson added that it "provides long-term predictable distributions, providing stable investment income while reducing risks associated with direct ownership."

Pipeline Expansion and Future Deals

Coastal GasLink runs 670 kilometres with a capacity of 2.1 billion cubic feet per day. TC Energy recently announced plans to double the pipeline's existing capacity by adding new compressor stations and upgrading facilities. Construction for the expansion is scheduled to begin in early 2027, with service expected in the early 2030s.

The expansion follows a final investment decision by LNG Canada for the Phase 2 expansion of its facility. LNG Canada is owned by Shell Canada and four Asian partners. The first phase of the LNG facility started up in the summer of 2025.

This transaction is the first of two planned Indigenous investment deals related to Coastal GasLink. TC Energy says a second transaction with another First Nations entity is expected to close in the fourth quarter of this year. In 2022, TC Energy announced option agreements to sell a 10 per cent equity interest in the pipeline to Indigenous communities across the project corridor.

Why it matters

This deal represents a shift toward direct Indigenous equity ownership in major Canadian energy infrastructure, moving beyond traditional benefit-sharing models. By using their own capital, the participating First Nations secure long-term financial returns and decision-making power over how those funds are used. The transaction also supports the expansion of Canada's LNG export capabilities, which aims to diversify natural gas customers beyond the United States.

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Sources

• ctvnews.ca: TC Energy completes Indigenous investment agreement
• bnnbloomberg.ca: TC Energy completes Indigenous investment agreement
• theglobeandmail.com: TC Energy completes Indigenous investment deal in Coastal GasLink - The Globe and Mail
• kalkinemedia.com: What Does the Coastal GasLink Deal Mean for TC Energy (TSX:TRP)?

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.