More Indigenous ownership in Canadian pipelines, LNG projects

The Cedar LNG facility, majority-owned by the Haisla Nation, is one example of growing Indigenous ownership in Canadian energy infrastructure. Cedar LNG image.

Indigenous communities are steadily increasing their ownership stakes in Canada’s oil and natural gas infrastructure, including thousands of kilometres of pipelines and several liquefied natural gas export projects, according to new analysis from the Canada Energy Regulator.

Since 2021, Indigenous communities have acquired ownership interests in more than 5,000 kilometres of operating pipelines across Canada, the regulator said in a market snapshot examining Indigenous participation in energy infrastructure.

The growing equity participation marks a significant shift in how major energy projects in Canada are developed and financed. Instead of participating primarily through consultation or employment, many Indigenous communities are becoming equity partners in pipelines and LNG facilities.

The CER says Indigenous ownership now includes stakes in oil, natural gas, and natural gas liquids pipelines already in service, as well as involvement in LNG export projects that are under construction or proposed. Indigenous communities also hold ownership interests in an operating LNG peaking and storage facility in British Columbia.

While many Indigenous-led energy initiatives in Canada focus on renewable power, the regulator noted that Indigenous communities—already recognized as the third-largest collective owners of clean energy assets in Canada after governments—have also expanded their ownership of fossil-fuel infrastructure in recent years.

“This growing ownership can create important economic opportunities and gives communities a greater voice and access to infrastructure and project-related information within their territories,” the CER said.

Much of the investment so far has focused on pipelines that are already operating. These assets typically generate stable, predictable revenue, making them easier to finance and attractive for Indigenous investment partnerships.

For example, in 2022 a group of 23 Indigenous communities known as Athabasca Indigenous Investments acquired an 11.57 per cent ownership stake in several Enbridge oilsands pipelines, covering more than 2,400 kilometres of infrastructure in northern Alberta. The transaction was supported by a $250 million loan guarantee from the Alberta Indigenous Opportunities Corporation (AIOC).

Other partnerships include the Northern Courier pipeline, where the Astisiy Partnership acquired a 14.25 per cent stake in 2021, and the Access NGL pipeline system, where the Northern Lakehead Indigenous Alliance purchased a 43 per cent ownership stake in 2023.

More recently, 38 Indigenous communities joined together through the Stonlasec8 Alliance Limited Partnership to purchase a 12.5 per cent interest in the Westcoast natural gas pipeline system, a network stretching more than 2,900 kilometres across British Columbia. The deal was backed by a $400 million loan guarantee from the federal Indigenous Loan Guarantee Program.

The CER says these types of investments are often structured through consortiums or limited partnerships, allowing multiple First Nations, Métis communities, or Indigenous governments to jointly invest in major infrastructure projects while sharing financial risks and benefits.

Government-backed loan guarantees have become a key tool supporting Indigenous ownership in the energy sector. These programs reduce financial risk for lenders and help Indigenous communities access capital on more favourable terms.

At the federal level, the Indigenous Loan Guarantee Program, launched in 2024 and administered through the Canada Indigenous Loan Guarantee Corporation, can provide guarantees ranging from about $20 million to $1 billion.

Several provinces have introduced similar initiatives. Alberta’s AIOC, created in 2019, has supported multiple pipeline equity deals, while programs in Ontario, Saskatchewan, Manitoba, and British Columbia are also designed to help Indigenous communities participate financially in energy and natural resource projects.

Ownership structures for LNG projects often differ from those used for existing pipelines. Instead of buying into assets that are already operating, Indigenous nations are frequently involved earlier in the development process.

One example is Cedar LNG, a floating LNG export facility under construction in Kitimat, British Columbia. The project is majority-owned by the Haisla Nation with a 50.1 per cent stake, alongside partner Pembina Pipeline Corporation. The facility is expected to export about 3.3 million tonnes of LNG per year once it begins operating later this decade.

Other proposed projects with Indigenous partners include Ksi Lisims LNG, being developed with the Nisga’a Nation in northern British Columbia, and NeeStaNan LNG, a proposed project led by Fox Lake Cree Nation in Manitoba.

Indigenous communities are also partners in the Mt. Hayes LNG peaking and storage facility, which has been operating since 2011 to help meet peak natural gas demand in British Columbia.

The CER says Indigenous ownership in Canada’s energy infrastructure could continue to grow. The federal government has indicated it will explore opportunities for Indigenous economic participation in the Trans Mountain Expansion pipeline, which could create additional ownership opportunities.

If current trends continue, Indigenous equity participation may become an increasingly important feature of Canada’s energy sector, reshaping how large energy projects are financed, governed, and developed across the country.