Latest news with #Stonlasec8
Yahoo
19-05-2025
- Business
- Yahoo
Enbridge Inc. (ENB) to Sell Stake in West Coast Pipeline
Enbridge Inc. (NYSE:ENB) recently revealed that it is selling a stake in its West Coast natural gas system. Let's shed some light on the development. A pipeline of natural gas cutting through a rural landscape. Enbridge Inc. (NYSE:ENB) is a midstream energy company that focuses on transporting and distributing oil, natural gas, and natural gas liquids. The Canadian company moves about 40% of the crude oil produced in North America. The Canadian pipeline operator recently announced that it has entered into an agreement with an Indigenous-owned partnership representing 36 First Nations in British Columbia. According to the deal, Stonlasec8 Indigenous Alliance will pay C$715 million ($511.19 million) to acquire a 12.5% stake in Enbridge's Westcoast pipeline, which stretches for 1,802 miles from northeast British Columbia to the Canada-U.S. border, with a capacity of 3.6 billion cubic feet of natural gas per day. The transaction is expected to close at the end of the second quarter of 2025. On closing, this will be the first major investment to receive a loan guarantee under the Canadian Indigenous Loan Guarantee Program, announced by the Government of Canada last Spring. Following this agreement, Enbridge Inc. (NYSE:ENB) has now struck four equity deals with Indigenous groups as part of its Indigenous reconciliation program launched in 2022. Cynthia Hansen, Enbridge's Executive Vice President and President of Gas Transmission and Midstream, stated: 'Enbridge's Westcoast natural gas pipeline system is a critical piece of energy infrastructure that has been providing people with the energy they need for more than 65 years. This transaction provides an opportunity to build on our relationships with Indigenous communities and advance reconciliation.' While we acknowledge the potential of ENB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ENB and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks According to Hedge Funds. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
National Observer
16-05-2025
- Business
- National Observer
A 'foot in the door': BC First Nations buy into Enbridge pipeline
For decades, a natural gas pipeline has cut through the territories of dozens of First Nations in BC — moving billions of dollars' worth of gas with zero ownership and little return to the communities. Now, 36 First Nations have bought in. 'For decades, the nations have watched resources leave their communities with very minimal benefit,' said Justin Napoleon, from Saulteau First Nation and director of Stonlasec8, a newly formed, Indigenous-owned, limited partnership made up of 36 First Nations in BC, including Treaty 8 members. In a landmark deal announced today, Stonlasec8 revealed its plan to invest approximately $715 million to acquire a 12.5 per cent ownership in Enbridge Inc.'s Westcoast natural gas pipeline system that stretches from BC's remote northeast to the US-Canada border. 'Now, they get to see development in a new light — as something they actually own, a piece that's truly part of theirs," Napoleon said. The deal gives Indigenous communities along the pipeline a direct financial stake in infrastructure on their traditional lands. 'Enbridge brought the opportunity to us,' said David Jimmie, chief of Squiala First Nation and president and chair of Stonlasec8. 'I think it signals through industry, and across the country, that these partnerships can be successful — and they can be done.' 'Enbridge brought the opportunity to us,' said David Jimmie, president and chair of Stonlasec8. 'I think it signals through industry, and across the country, that these partnerships can be successful — and they can be done.' A significant step was securing a $400-million loan guarantee from the federal government through an initiative launched in December 2024. This makes the Stonlasec8 investment the first major project supported by the $10-billion federal Indigenous Loan Guarantee Program. The government program 'opens up doors for the nations to access capital and take that step towards economic self-determination,' Napoleon said. The Westcoast pipeline transports up to 3.6 billion cubic feet of natural gas daily along a 2,900-kilometre route, supplying BC, Alberta, and the US Pacific Northwest. Through this partnership, Indigenous communities shift from stakeholders to shareholders, gaining a role in co-governing infrastructure on their lands, Jimmie said. The financial returns from the Westcoast pipeline are slated to be distributed equally among the First Nations in the Stonlasec8 consortium. Each nation will then decide how those funds will be invested in their communities. 'My hope is it's predictable, long-term, recurring revenue that you can plan around ... You can build that into your community planning as needed, and it's a reliable source of income,' Napoleon said. A step forward, with limits Historically, BC First Nations have faced major financial barriers to resource project ownership. A decade ago, 16 nations in BC were denied a commercial-rate loan for the Pacific Trail Pipeline and settled for a buyout instead of equity. To Indigenous leaders, this new agreement signals progress, but also exposes the complexities of participation in resource development. They acknowledge the tension: financial participation brings opportunity, but also binds nations to the risks and responsibilities of fossil fuel infrastructure. While Stonlasec8's 12.5 per cent stake marks a significant shift from previous exclusion, it does not translate to a controlling voice on how the pipeline is run or how environmental risks are managed. 'We don't have that power. At 12.5 per cent interest, you're not going to be a major decision-maker in this — but it gets your foot in the door, and you're able to have the conversation, which we couldn't do before,' Jimmie said. Jimmie said Enbridge and other companies must still adhere to regulatory processes, engage with First Nations, and share environmental assessment findings. 'We still do wear the other hat as rights- and title-holders in the territory,' he said. John Desjarlais, executive director of the Indigenous Resource Network, an organization that advocates for Indigenous participation and leadership in resource development, said he is thrilled about the partnership. 'There's a lot of good components that could mobilize a good, meaningful development, and shape the policy that we're going to see into the future,' Desjarlais said. But he warns that these are not mere stakeholder roles but business partnerships, separate from government obligations of consent or consultation — which means the legal and financial risks rest heavily on the Indigenous partners. 'It's interesting — we talk about oil spills, but now we'd be talking about a nation spilling oil on its own nation, or other nations … affecting its rights and other rights,' Desjarlais said. He said Indigenous nations will need to prepare for the possibility of managing crises that affect their own lands and neighbouring rights, in addition to ongoing community challenges, including housing, education and mental health crises. Jimmie said discussions around potentially growing Stonlasec8's stake hadn't occurred — but if there's an opportunity, First Nations would be open to it.
CBC
15-05-2025
- Business
- CBC
B.C. First Nations group buys stake in Enbridge gas pipeline in historic deal
A group of 36 B.C. First Nations has signed a deal to buy a minority stake in Enbridge's Westcoast natural gas pipeline system. The head of the Stonlasec8 Indigenous Alliance Limited Partnership is calling the deal a significant milestone that will bring several economic benefits. Yasmine Ghania has more on the over $700-million deal.
CBC
15-05-2025
- Business
- CBC
Enbridge sells stake in Westcoast pipeline to First Nations group
Stonlasec8 Indigenous Alliance Limited Partnership will invest $715M for a 12.5 % share Enbridge Inc. has signed a deal to sell a minority stake in its Westcoast natural gas pipeline system to a group of 36 First Nations in B.C. Under the agreement, the Stonlasec8 Indigenous Alliance Limited Partnership will invest $715 million for a 12.5 per cent stake in the system. The Westcoast natural gas pipeline system extends more than 2,900 kilometres from Fort Nelson in northeast B.C. and from Gordondale near the B.C.- Alberta border, south to the Canada -U.S. border. Chief David Jimmie, president and chair of Stonlasec8 and chief of Squiala First Nation, called the deal a significant milestone. "Enbridge's Westcoast pipeline system is a legacy asset that has operated within our traditional territories for over 65 years," Jimmie said in statement. "Now, our Nations will receive sustained economic benefits from this asset, funding critical investments in housing, infrastructure, environmental stewardship, and cultural preservation. People often ask what economic reconciliation for Indigenous Peoples looks like. This is it." Enbridge chief executive Greg Ebel said the agreement is one of several such deals the company has undertaken in the last several years as it explores additional opportunities for Indigenous partnerships. "Enbridge's commitment to advance Indigenous ownership opportunities related to our existing and growing energy assets underlines our efforts to be the first choice partner for the communities we serve," Ebel said in a statement. The First Nations partnership has reached an agreement with Canada Indigenous Loan Guarantee Corp., a subsidiary of Canada Development Investment Corp., to secure a $400-million loan guarantee to enable the deal. The transaction is expected to close by the end of the second quarter of 2025, subject to financing and other conditions. Last year, Enbridge Inc. and Six Nations Energy Development LP announced plans to develop a massive wind energy project in southeast Saskatchewan. The Seven Stars Energy Project, located near Weyburn, is slated to produce 200 megawatts of clean electricity, enough to fuel more than 100,000 homes for a year.
Calgary Herald
15-05-2025
- Business
- Calgary Herald
Enbridge to sell B.C. gas pipeline stake to Indigenous groups
Article content Enbridge Inc. plans to sell a stake in a natural gas pipeline system in British Columbia to Indigenous communities in a deal that will be financially backed by Ottawa. Article content The federal government will provide a $400-million loan guarantee to support a partnership of 36 First Nations in their purchase of a 12.5 per cent interest in the Westcoast pipeline system, which transports gas from Fort Nelson, in the northeastern part of B.C., to the Canada-U.S. border. Article content 'The agreement between Stonlasec8, Enbridge and the Government of Canada is truly groundbreaking,' Justin Napoleon, a director of Stonlasec8 and former chief of Saulteau First Nation, said in a statement Thursday. Article content Calgary-based Enbridge and other Canadian energy companies have increasingly been partnering with Indigenous communities on operations that affect their land, moves that both improve relations with the groups and also seek to head off environmental and legal opposition. Article content Enbridge in 2022 agreed to sell a 12 per cent stake in seven pipelines in Alberta to First Nations and Métis communities in a deal it called 'Project Rocket.' Article content Rival pipeline operator TC Energy Corp. announced last July that it would sell a 5.3 per cent stake in its NGTL gas system and Foothills Pipeline assets to a consortium including as many as 72 Indigenous communities in western Canada. Article content
