TC Energy has sold an economic stake in the Coastal GasLink pipeline to five First Nations, the company confirmed in an announcement reported by the Financial Post on 14 May 2025. The transaction covers an ownership interest in the 670-kilometre pipeline that moves natural gas from northeast British Columbia to the LNG Canada export terminal at Kitimat.

The five participating First Nations are members of the First Nations Limited Partnership structure. They hold communities located along the pipeline's route across northern British Columbia.

What does the agreement cover?

The agreement transfers what TC Energy calls an "economic stake" — a share of pipeline revenues and asset value without full operational control — to the five nations. The company retains operation of the line.

The structure follows a financing model TC Energy has used before. A similar arrangement governed its sale of equity in the Prince Rupert Gas Transmission project.

The Coastal GasLink pipeline entered commercial service in April 2024. It is the sole feed line for LNG Canada's Phase 1 liquefaction complex at Kitimat, which has a capacity of 14 million tonnes per annum (mtpa).

Who are the parties?

TC Energy, headquartered in Calgary, operates roughly 93,000 kilometres of natural gas pipelines across North America. The five First Nations each hold territory crossed by the pipeline corridor.

The transaction formalizes a benefit-sharing approach the company first outlined during pipeline construction. TC Energy has said Indigenous equity participation in major energy infrastructure is a strategic priority.

Why does the stake matter?

Coastal GasLink is a critical link in Canada's liquefied natural gas export chain. The line delivers gas from the Montney play to the coast for export to Asian markets.

Indigenous ownership in the asset marks a shift in how major Canadian energy projects distribute economic returns. Similar equity deals have appeared across the sector, including the 2022 C$1-billion First Nations stake in the Coastal GasLink partnership's regional infrastructure investments.

Analysts view such transactions as a way to align project economics with affected communities. Whether the model extends to other TC Energy assets remains an open question for the industry.

What comes next?

The parties have not disclosed the financial terms of the sale. The percentage stake held by the five nations, and the structure of revenue distribution, were not itemized in the announcement.

Watch for follow-on disclosures in TC Energy's regulatory filings, which may detail the transaction value and any financing arrangements backing the purchase.