Keystone XL pipeline project : Natural Law Energy to acquire 12% stake for $763m
Natural Law Energy (NLE) has agreed to acquire a stake of 12% in the $8 billion Keystone XL pipeline project from TC Energy for CAD 1 billion ($763.7 million).
The deal follows a memorandum of understanding (MOU) signed by the parties in September 2020 to allow Natural Law Energy to invest in the pipeline project as well as other related midstream and power projects in the coming years.
Natural Law Energy is a Treaty alliance of five First Nations in Canada.
Travis Meguinis – Natural Law Energy CEO said: “Natural Law Energy has used the same blueprint our ancestors used when they negotiated the Treaties that governed working together to share the land.
“Today, we’re pleased to announce that NLE’s definitive agreement is one of the largest ever with over $1 billion deal for First Nations. We’re a major contributor to economic developments on our traditional lands and will create opportunities for future generations.
“As an Indigenous led company, we need to ensure sustainability to Mother Earth and share our understanding as stewards of the land by bringing our traditional protocols and values to these projects.”
The Keystone XL pipeline project is a 1,947km long crude oil pipeline between Canada and the US, that is designed to transport 830,000 barrels of crude oil sourced from Hardisty, Alberta to Steele City, Nebraska.
Natural Law Energy to acquire 12% stake in TC Energy’s Keystone XL pipeline project for $763m. Photo courtesy of TransCanada PipeLines Ltd.
Richard Prior – Keystone XL Pipeline President said: “This agreement is a reflection of the meaningful way NLE is choosing to participate in a long-term partnership on the Keystone XL pipeline.
“This partnership will facilitate important input and guidance from NLE on the project as we make this the most sustainable and safest pipeline ever developed. It will also enable the realization of long-term, meaningful economic benefits derived from an attractive return of and on NLE’s investment.”
As the construction on the pipeline project continues, TC Energy said it will repeat the ownership model for other indigenous communities along the pipeline route in both the countries.
In October, TC Energy announced contracts to six major American union contractors with a combined worth of more than $1.6 billion to undertake construction on the Keystone XL Pipeline across 1,287km in three US states next year.
TC Energy said that the first phase of the deal with Natural Law Energy is expected to be completed in Q3 2021, subjected to the latter securing financing.