Indigenous communities invest over $1 billion in Enbridge pipelines
The 23 First Nations communities buy a minority interest in seven Enbridge pipelines.
A group of 23 First Nations and Métis communities in Alberta acquire a minority interest in certain pipelines from the company Enbridge for $1.12 billion.
The investment represents an 11.57% interest in seven oil pipelines from the Calgary-based company. The vast majority of these pipelines carry crude oil from the Fort McMurray area to Enbridge terminals in Edmonton and Hardisty.
A new entity called Athabasca Indigenous Investments will manage the participation of communities in infrastructure.
This is a historic day for communities in the Athabasca region, Frog Lake First Nation Chief Greg Desjarlais said in a statement. . Not only is it an opportunity for enrichment, but this investment supports the economic sovereignty of our communities.
According to Enbridge's press release, long-term contracts have been signed for these pipelines, guaranteeing “predictable high revenues”.
In addition to financing secured by Athabasca Indigenous Investments, the group secured a $250 million equity loan from the company. Alberta State Alberta Indigenous Opportunities Corporation (AIOC).
Partial acquisition expected to close next month.