On March 9, 2022, 11 First Nations who are limited partners in CGL First Nations Limited Partnership ("CGL FNLP") announced a historic option agreement with TC Energy to purchase an equity interest in the Coastal GasLink Pipeline Project ("CGL").
The First Nations Major Project Coalition ("FNMPC") played an important role in facilitating partnerships between CGL, First Nations, and government to support desired outcomes. With the FNMPC's support, the 11 First Nations came together under the banner of CGL FNLP to advance the member Nations' collective interests in attaining a viable equity participation opportunity in this project.
A Gowling WLG team led by Scott A. Smith (Indigenous law) and Myron Dzulynsky (transactional), and including Lorne Rollheiser, Elizabeth Burton, Aneeka Sandher, Jessica George, and others advised CGL FNLP on the transaction.
"This is a landmark moment for Indigenous communities along the Coastal GasLink project corridor," says Scott. "While we recognize our work is not finished, we congratulate FNMPC, CGL, and our client CGL FNLP on this major leap forward for First Nations owning an equity stake in this pivotal natural resources project."
"While the agreement took time to reach, ultimately both sides grew to understand each others needs and perspective, and to enter into an agreement that addressed both, while simultaneously taking into account minimizing execution risk for both TC Energy and CGL FNLP. It was privilege and pleasure to be involved," says Myron.
Through CGL FNLP, First Nations will have the right to purchase an interest in CGL. The option is expected to be exercised shortly after the commercial in-service date of the project, subject to customary regulatory approvals and consents, including the consent of LNG Canada.