A partnership of 36 First Nations in British Columbia is acquiring a 12.5% stake in Enbridge Inc.’s Westcoast natural gas pipeline system for CA$715 million (US$511 million) — a landmark deal that represents the first transaction backed by Canada’s new federal Indigenous loan guarantee program.
The group, known as the Stonlasec8 Indigenous Alliance LP, secured CA$400 million in loan guarantees from the newly launched Canada Indigenous Loan Guarantee Corporation (CILGC), a federal entity created in December 2024 to help Indigenous communities gain access to capital and participate in major infrastructure projects. The program aims to provide up to $10 billion in guarantees for such investments.
The deal marks Enbridge’s fourth equity partnership with Indigenous groups, and its first involving a natural gas pipeline. Previous agreements include a C$1.12 billion minority sale in 2022 involving seven Alberta oil pipelines. Enbridge executives say partnerships like these are increasingly essential for aligning with Indigenous interests and ensuring community support for energy development.
The Westcoast pipeline, operated by Enbridge subsidiary Westcoast Energy Inc., spans more than 2,900 kilometers (1,802 miles), transporting up to 3.6 billion cubic feet per day (Bcf/d) of natural gas from northeast British Columbia to the Canada-U.S. border. The line has been in service for over 65 years and crosses extensive traditional Indigenous territory.
“For decades, energy infrastructure has crossed our lands without our participation,” said Chief David Jimmie, president of Stonlasec8 and Chief of Squiala First Nation. “This investment changes that. Our communities will now share in the long-term economic benefits while supporting housing, environmental protection, and cultural preservation.”
The partnership is the result of two years of negotiation, according to Enbridge, and comes amid growing consensus that Indigenous co-ownership is critical to gaining support for resource projects in Canada. Earlier this year, 14 CEOs from leading energy firms, including Enbridge, signed a letter urging federal leaders to promote Indigenous equity in pipeline and infrastructure projects.
“This is what reconciliation looks like,” Jimmie added. “Energy companies now recognize that without Indigenous participation, it will become increasingly difficult to move these kinds of projects forward.”
Cynthia Hansen, Enbridge’s EVP of gas transmission and midstream, said the deal reflects Enbridge’s commitment to advancing reconciliation through sustained economic partnerships.
The transaction is expected to close by Q2 2025, subject to regulatory approvals and customary closing conditions.
Deal Overview:
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Stake Sold: 12.5% of the Westcoast pipeline
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Value: CA$715 million (US$511 million)
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Pipeline Capacity: 3.6 Bcf/d
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Loan Guarantee: CA$400 million via CILGC
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Purpose: Economic reconciliation, Indigenous equity, and energy development alignment
RBC Capital Markets acted as financial advisor to Enbridge, with McCarthy Tétrault as legal counsel. TD Securities Inc. advised the Stonlasec8 partnership, supported by Boughton Law and MNP LLP on legal, tax, and business matters.
$2.3B Q1 Profit in May, Citing Policy Momentum in Canada and U.S.
In May 2025, Enbridge Inc. reported strong first-quarter results, with net income rising to $2.3 billion, up from $1.4 billion a year earlier. Revenue increased to $18.5 billion, up from $11.04 billion.
During the earnings call, CEO Greg Ebel said he was “completely enthused” by the growing political focus on energy infrastructure development in both Canada and the U.S. He noted a shift in tone, with governments appearing more supportive of accelerating oil and gas projects.
Ebel highlighted Canada’s April federal election as a turning point, with the newly elected government promising streamlined permitting, a single federal project review process, and positioning Canada as an “energy superpower.” Still, he pointed out that unresolved issues—including the carbon levy, emissions cap, and tanker bans—continued to create uncertainty.
He also referenced policy momentum in the U.S., where the administration had pushed for faster approvals of LNG terminals and pipeline projects.
While Enbridge executives had not yet met with Canada’s new prime minister, Ebel stressed that key policy shifts—particularly those related to permitting and Indigenous partnerships—could be enacted swiftly with legislative or regulatory action.
Separately, Enbridge confirmed it had acquired a 10% stake in the Matterhorn Express natural gas pipeline in the Permian Basin for $300 million USD, as part of its long-term growth strategy in U.S. midstream assets.
Despite volatility in commodity prices, particularly in the U.S., Enbridge remained shielded due to its contract-based model. EVP of Liquids Pipelines Colin Gruending stated that the company had seen mixed signals from Permian producers but emphasized the basin’s strategic importance.
Enbridge’s Q1 performance and ongoing expansion efforts reflected continued confidence in North American energy markets and policy tailwinds heading into the second half of 2025.
