TRP and NLE Make $1B Keystone XL Deal
TC Energy Corporation (TSX, NYSE: TRP) and Natural Law Energy (NLE) have announced that they have signed a deal which allows NLE to make an equity investment of up to $1 billion in the Keystone XL pipeline project.
The first phase of the transaction, which is contingent on NLE securing financing, is expected to close in the third quarter of next year. The agreement also contemplates NLE pursuing an interest in future liquids projects, according to a joint company statement.
“This agreement is a reflection of the meaningful way NLE is choosing to participate in a long-term partnership on the Keystone XL pipeline,” Richard Prior, the president of Keystone XL Pipeline, said in a TRP statement.
“This partnership will facilitate important input and guidance from NLE on the project as we make this the most sustainable and safest pipeline ever developed. It will also enable the realization of long-term, meaningful economic benefits derived from an attractive return of and on NLE’s investment,” he added.
Travis Meguinis, the chief executive officer of NLE, said, “Natural Law Energy has used the same blueprint our ancestors used when they negotiated the treaties that governed working together to share the land”.
“We’re pleased to announce that NLE’s definitive agreement is one of the largest ever with over $1 billion deal for First Nations. We’re a major contributor to economic developments on our traditional lands and will create opportunities for future generations,” he added.
“As an Indigenous led company, we need to ensure sustainability to Mother Earth and share our understanding as stewards of the land by bringing our traditional protocols and values to these projects,” Meguinis went on to state.
As the Keystone project advances through construction, TC Energy said it will create opportunities for additional Indigenous communities along the Keystone XL corridor both in Canada and the Unites States. The company noted that this initiative was in addition to the more than $600 million in Indigenous supplier and employment opportunities expected to be created through the project’s construction.
Keystone XL is the fourth phase of the Keystone Pipeline System, which is solely owned by TC Energy. According to the company, Keystone XL is creating approximately 13,000 “high-paying” union jobs in the U.S. and Canada and supporting over supporting over 60,000 jobs across North America.
TC Energy runs a network of natural gas and crude oil pipelines, along with power generation and storage facilities. The business employs more than 7,500 people and operates across Canada, the U.S. and Mexico. NLE is a Treaty alliance of Nations from traditional territories of Treaty No. 4, Treaty No. 6 and Treaty No. 7. The partner First Nations are Tribes proactively advancing new economic growth and opportunities for their people for generations to come.
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