(Reuters) - Canada's Suncor Energy said on Thursday it had partnered with eight indigenous communities to buy all of TC Energy Corp's 15% stake in the Northern Courier Pipeline Limited Partnership.
Suncor Energy facility is seen in Sherwood Park, Alberta
Suncor, three First Nations and five Métis communities will own a 15% stake in this pipeline asset with a value of about C$1.3 billion. ($1.03 billion).
Oil and gas companies have been increasingly partnering with Canada's First Nations on projects as they play a pivotal role in Canada's oil industry. Governments and companies have a legal duty to consult and accommodate First Nations before proceeding with resource projects affecting their territories.
However, some indigenous groups oppose such partnerships and deals.
The partnership is expected to generate gross revenues of about C$16 million annually for its partners and provide reliable income, Suncor said in a statement.
The indigenous communities' participation in the deal is funded through a non-recourse financing that is supported by a loan guarantee of up to C$40 million from the Alberta Indigenous Opportunities Corp.
The Northern Courier Pipeline asset consists of two 90-kilometre pipelines that transport bitumen and diesel or crude from Fort Hills in Alberta's Athabasca region to a storage, blending and cooling facility located about 30 kilometers north of Fort McMurray, Alberta.
($1 = 1.2635 Canadian dollars)
(Reporting by Arunima Kumar in Bengaluru; Editing by Amy Caren Daniel)
Suncor, three First Nations and five Métis communities will own a 15% stake in this pipeline asset with a value of about C$1.3 billion. ($1.03 billion).
Oil and gas companies have been increasingly partnering with Canada's First Nations on projects as they play a pivotal role in Canada's oil industry. Governments and companies have a legal duty to consult and accommodate First Nations before proceeding with resource projects affecting their territories.
However, some indigenous groups oppose such partnerships and deals.
The partnership is expected to generate gross revenues of about C$16 million annually for its partners and provide reliable income, Suncor said in a statement.
The indigenous communities' participation in the deal is funded through a non-recourse financing that is supported by a loan guarantee of up to C$40 million from the Alberta Indigenous Opportunities Corp.
The Northern Courier Pipeline asset consists of two 90-kilometre pipelines that transport bitumen and diesel or crude from Fort Hills in Alberta's Athabasca region to a storage, blending and cooling facility located about 30 kilometers north of Fort McMurray, Alberta.
($1 = 1.2635 Canadian dollars)
(Reporting by Arunima Kumar in Bengaluru; Editing by Amy Caren Daniel)
TC Energy sells remaining 15 per cent stake in Northern Courier Pipeline
CALGARY — TC Energy Corp. says it has signed a deal to sell its remaining 15 per cent stake in the Northern Courier Pipeline to a partnership including Suncor Energy Inc. and eight Indigenous communities.
Financial terms of the agreement were not immediately available.
The Astisiy Limited Partnership includes the Athabasca Chipewyan First Nation, Chipewyan Prairie First Nation, Conklin Métis Local #193, Fort Chipewyan Métis Local #125, Fort McKay Métis Nation, McMurray Métis, Fort McMurray #468 First Nation, Willow Lake Métis Nation and Suncor.
The sale is expected to close in the fourth quarter, subject to customary closing conditions and required regulatory approvals.
The Northern Courier Pipeline is 90 kilometres and carries bitumen and diluent between the Fort Hills oilsands mine and Suncor's terminal north of Fort McMurray, Alta.
TC Energy sold an 85 per cent stake in the pipeline to Alberta Investment Management Corp. in 2019.
This report by The Canadian Press was first published Sept. 16, 2021.
Companies in this story: (TSX:TRP, TSX:SU)
The Canadian Press
CALGARY — TC Energy Corp. says it has signed a deal to sell its remaining 15 per cent stake in the Northern Courier Pipeline to a partnership including Suncor Energy Inc. and eight Indigenous communities.
Financial terms of the agreement were not immediately available.
The Astisiy Limited Partnership includes the Athabasca Chipewyan First Nation, Chipewyan Prairie First Nation, Conklin Métis Local #193, Fort Chipewyan Métis Local #125, Fort McKay Métis Nation, McMurray Métis, Fort McMurray #468 First Nation, Willow Lake Métis Nation and Suncor.
The sale is expected to close in the fourth quarter, subject to customary closing conditions and required regulatory approvals.
The Northern Courier Pipeline is 90 kilometres and carries bitumen and diluent between the Fort Hills oilsands mine and Suncor's terminal north of Fort McMurray, Alta.
TC Energy sold an 85 per cent stake in the pipeline to Alberta Investment Management Corp. in 2019.
This report by The Canadian Press was first published Sept. 16, 2021.
Companies in this story: (TSX:TRP, TSX:SU)
The Canadian Press
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