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TC Energy (TRP) Agrees to Indigenous Stake in Coastal GasLink

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Calgary-based TC Energy Corporation (TRP - Free Report) declared that it signed option agreements to sell 10% of its interest in the Coastal GasLink natural gas pipeline project to indigenous communities across the pipeline's route. The prospect of having equity ownership is available to the native groups that already hold existing agreements with the 670 km-long development.

This project, in which TC Energy owns a 35% interest, while KKR and Alberta Investment Management together hold a 65% stake, has been opposed by environmentalists and First Nations (a term used to identify the native Canadian population) for several years as they contend that the pipeline trespasses the traditional native land.

For the option agreements, The Nations have established two entities, namely the CGL First Nations Limited Partnership and the FN CGL Pipeline Limited Partnership, that jointly represent 16 communities that have confirmed their backing for the same.

TC Energy mentioned that the equity option is in addition to 20 agreements that Coastal GasLink has with indigenous groups along the route to offer opportunities for contracting and employment, among other long-term benefits. However, the equity option can be exercised after the commercial in-service of the pipeline contingent on required regulatory approvals.

Built in British Columbia, Canada's westernmost province, the Coastal GasLink pipeline will have a preliminary transport capacity of 2.1 billion cubic feet per day. The project will transport natural gas from the Montney gas-producing region, the Groundbirch area west of Dawson Creek, to the permitted LNG Canada export facility near Kitimat.

TC Energy Corporation is a premier energy infrastructure provider in North America. Established in 1951, the company is primarily focused on natural gas transmission through its 57,500-mile network of pipelines located in Canada, the United States and Mexico. TRP is also involved in other businesses, including power generation, natural gas storage and crude oil pipelines.

TC Energy currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space that warrant a look include Devon Energy (DVN - Free Report) , Marathon Petroleum (MPC - Free Report) and PDC Energy , each sporting a Zacks Rank #1 (Strong Buy).  You can see the complete list of today’s Zacks #1 Rank stocks here.

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