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OTTAWA — The federal government is offering Indigenous communities along the Trans Mountain pipeline route a package of financial incentives aimed at expanding First Nations ownership in one of Canada’s most important energy corridors.
Ottawa has offered 129 Indigenous communities a collective 15 per cent equity stake in Trans Mountain, with participating groups able to finance their investment through low-cost government-provided debt.
Each community that formally commits to invest is also set to receive a $2.5-million payment.
Finance Minister François-Philippe Champagne said Tuesday the payment is intended to compensate communities for revenue they might have received had Indigenous ownership been established years earlier.
Eligible communities are also being offered up to $100,000 to help cover participation costs, while Ottawa will separately fund independent advisers to assist with due diligence.
The proposed 15 per cent stake would be purchased collectively at what the government describes as a fair price and divided evenly among Indigenous groups that choose to participate.
Ottawa is still gauging interest before determining some of the finer details, including the size of individual stakes and the final terms for buying in.
John Fragos, a spokesperson for Champagne, said the offer follows consultations and discussions with the 129 First Nations along the pipeline route.
He said the federal government views Indigenous participation and direct economic benefits as an important part of major infrastructure development.
Further details are expected to be discussed during a series of in-person meetings planned for Vancouver, Victoria, Kamloops and Edmonton in late October.
The federal government bought the Trans Mountain pipeline, its expansion project and related assets for $4.5 billion in 2018 after Kinder Morgan raised concerns about regulatory uncertainty surrounding the project.
The expansion entered service in 2024, increasing capacity from roughly 300,000 barrels per day to about 890,000 barrels per day and giving Canadian crude greater access to Pacific markets.
Trans Mountain has also been generating returns for Ottawa, with the corporation providing billions of dollars in interest, dividends and debt repayments to the federal government since the expanded system entered service.
The proposed Indigenous ownership model builds on an earlier federal commitment to give affected communities an opportunity to participate economically in the pipeline.
Finance documents released in 2024 contemplated Indigenous ownership being held collectively through a special-purpose vehicle, giving participating groups governance rights and a share of cash generated by the pipeline.
The federal offer has received a mixed response from Indigenous energy advocates.
Stephen Buffalo, president and CEO of the Indian Resource Council, said this week the 15 per cent stake was too small and argued Ottawa should have entered negotiations with a substantially larger ownership offer.
Dale Swampy, CEO of the National Coalition of Chiefs, said the concept of Indigenous equity participation was positive but questioned the size of the $2.5-million payment and said more details about the proposed investment are needed.
Champagne defended the proposal Tuesday, describing Trans Mountain as an established and substantially de-risked asset and the equity offer as a meaningful investment opportunity for participating communities.
Indigenous equity ownership has become increasingly common in major Canadian energy and infrastructure developments, including natural gas pipelines, LNG facilities and nuclear projects.
Ottawa has also indicated it wants Indigenous ownership to play a role in future major resource developments, including a proposed new West Coast oil pipeline being considered for designation as a project in the national interest.
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