Enbridge Inc (ENB.TO) will sell its 11.57% stake in seven of its pipelines in Alberta to a coalition of 23 Indigenous communities for $1.12 billion, the Canadian pipeline operator said on Wednesday.
Athabasca Indigenous Investments (Aii), a newly formed entity of 23 First Nations and Métis communities, will buy the non-operating interest, in what Enbridge says will be the largest energy-related Indigenous economic partnership in North America.
"In addition to an opportunity to generate wealth for our people, this investment supports economic sovereignty for our communities," said Chief Greg Desjarlais of Frog Lake First Nation.
The deal, which is expected to close within the next month, involves pipelines in the Athabasca region of northern Alberta, including the Athabasca and Wood Buffalo/Athabasca Twin, and associated tanks — Norlite Diluent, Waupisoo, Wood Buffalo, Woodland, and the Woodland extension
"This also fully aligns with our priority to recycle capital at attractive valuations, which can be used to fund numerous growth opportunities within our conventional and low-carbon platforms", said Enbridge President and Chief Executive Officer Al Monaco.
