LAKELAND, Alta. – Last week, Enbridge Inc., a Calgary-based multinational pipeline company, announced that it had sold 11.5 per cent minority stake worth $1.12 billion in seven pipelines to Athabasca Indigenous Investments (Aii).
The Aii represent 23 First Nation and Metis communities in Alberta’s Athabasca region, including eight Treaty 6 First Nations, and Métis settlements.
Chief Greg Desjarlais of Frog Lake First Nation spoke during a Sept. 28 media conference announcing the deal, saying the partnership will help pave a path toward economic sovereignty in participating First Nation and Métis communities.
“This investment will allow us to send our kids to school, send our people to treatment, allow us to deal with mental crisis we have in our communities – the anxiety of the young people,” he said, explaining the partnership with Enbridge will also involve opportunities to house people in new homes and make road improvements.
“Maybe one day, also [have] services where we can all enjoy water by turning on a tap instead of having [water] be delivered by a truck every few days,” said Desjarlais. He said Indigenous people have always had economic sovereignty, but “somewhere along the lines, we were excluded.”
Desjarlais said he hopes the industry and other levels of government are paying attention because, “our people should not live in poverty of the land of milk and honey.” He added, “our milk has gone sour somewhere and we need to get back to working together to provide the basics – the necessities of water and housing.”
The historic partnership will allow the participating Indigenous communities, like Frog Lake, to have a seat at the table, which is crucial in terms of economic development, according to Desjarlais. For too long, First Nations communities and Métis settlements fought over small projects and “with that, you cannot sustain your nation at all... you cannot build homes with that.”
“The seat cannot be ignored or overlooked,” he said, stating, he will keep trying to remove addictions from reserves, “remove homelessness, remove suicide, and so that our kids can enjoy a fresh 10x12 room with fresh paint one day.”
He thanked all involved stakeholders and partners like Enbridge, the provincial Crown corporation Alberta Indigenous Opportunities Corp. (AIOC), Aii, and the Government of Alberta.
To make the deal a possibility, the AIOC provided a financial of backstop amounting to a quarter of the $1.12 billion investment. AIOC chief executive Chana Martineau said the AIOC participated “via a loan guarantee on the $250 million piece of the loan,” used to fund the investment.
Enbridge Chief Executive Al Monaco said the remainder of the $1.1 billion “essentially is done through what we call private placement.” Private placement is an alternative class of investment that allows investors to invest in stocks or bonds not listed on a public stock exchange.
Colin Gruending, vice-president with Enbridge, said the agreement with Athabasca Indigenous Investments in the seven pipelines collectively transport around 45 per cent of Canada’s oilsands production, “under contract to key export hubs in Edmonton and Hardistry.”
By selling a portion of Enbridge’s assets, Gruending explained it “supports our strategy of recycling capital from existing businesses to invest in other parts of energy transition.” He said it also gives Enbridge the opportunity to strengthen relationships with Indigenous communities in northern Alberta.
According to Enbridge, the company is committed to achieving net-zero, including achieving green pipelines. Partnering with Indigenous groups is also essential to building the proper infrastructure for renewable energy.
Monaco said, “it means, for example, potentially powering pipelines with electricity – particularly from solar farms.” He also added that infrastructure is key, which he believes requires “a collection of collaboration to come together,” whether it’s low-carbon or conventional resources.
When it comes to holding Enbridge accountable to the environment and energy transition, president of Athabasca Indigenous Investments, Justin Bourque, responded by saying, “[Indigenous peoples] hold ourselves in high regard to be stewards of the land.”
“We are land users, we are reliant on the land, and in all aspects of our history and still today,” said Bourque.
“So, in terms of environment accountability, we have discussions as partners instead of stakeholders,” he added.
Premier Jason Kenney said the signing of the billion-dollar deal is historic for Alberta, for Canada, and for reconciliation with Indigenous people. The Premier said it is through practical solutions like the billion-dollar deal, that leads to long-term revenue for First Nations and Métis communities.
The 23 communities involved in the deal are:
Métis Settlements
Buffalo Lake Métis Settlement
Kikino Métis Settlement
Elizabeth Métis Settlement
Fishing Lake Métis Settlement
Treaty 6 First Nations
Beaver Lake Cree Nation
Cold Lake First Nations
Frog Lake First Nation
Heart Lake First Nation
Kehewin Cree Nation
Onion Lake Cree Nation
Saddle Lake Cree Nation
Whitefish/Goodfish Lake First Nation
Treaty 8 First Nations
Athabasca Chipewyan First Nation
Chipewyan Prairie First Nation
Fort McKay First Nation
Fort McMurray 468 First Nation
Mikisew Cree First Nation
Métis communities
Chard Métis Nation
Conklin Métis Local 193
Fort Chipewyan Métis Local 125
Fort McKay Métis Nation
McMurray Métis Local 1935
Willow Lake Métis Nation
