Canada's First Nations are increasingly acquiring stakes in energy projects across the country, seeking economic benefits from developments on their traditional territories. 

Energy companies, in turn, are looking to Indigenous communities as a source of capital.

As reported by Reuters on Tuesday, April 2, several major deals are underway, including potential First Nations involvement in the Trans Mountain pipeline and the Coastal GasLink project. 

With the Canadian government owning the Trans Mountain pipeline, it’s considering selling a portion to First Nations. And TC Energy, the operator of Coastal GasLink has already offered a 10% stake to Indigenous communities.

Discussions are also underway between BC Hydro and K'uul Power, a First Nations consortium, regarding a 50% stake in a C$3-billion ($2.2 billion) northwest transmission line expansion project in British Columbia.

Last year, Enbridge sold a C$1.12-billion ($825.6 million) minority stake in seven Alberta oil pipelines to a group of Indigenous communities. 

Other recent developments include a memorandum of understanding between Suncor and Fort McKay First Nation to explore a potential oil sands lease and the majority-Indigenous-owned Cedar LNG project in British Columbia.

Additionally, Ontario's Hydro One established a model in 2022 to offer First Nations a 50% stake in future large-scale transmission line projects.

This trend reflects a growing focus on reconciliation with Indigenous communities and their desire for a greater share in resource development projects. It also presents an opportunity for energy companies to secure capital and partners.