The Canadian government has given contingent approval for a $726 million loan guarantee to indigenous communities interested in buying a stake in a TC Energy pipeline, Bloomberg reported July 23.

The sale would be for a stake in the company’s NGTL system. The line gathers and transports gas from Alberta and British Columbia to domestic and export markets. TC Energy estimates the 15,300-mile system handles about a tenth of North America’s natural gas supply.

TC Energy has been discussing the sale of its assets to indigenous groups since the beginning of 2024. In January, the company invited 72 different communities from Alberta and British Columbia to discuss partnerships.

In April, the Canadian government approved a loan guarantee effort to financially support indigenous communities’ future purchases of energy assets operating or passing through their traditional territories.

"We congratulate Canadian Indigenous leaders for securing a landmark Indigenous Loan Guarantee Program with the federal government,” TC Energy said at the time in a statement following the approval.

The deal is part of a larger overall program by the company to reduce its construction debt.

Since last year, TC Energy has sought to sell assets to cover cost overruns on the Coastal GasLink pipeline project, finished in 2023, the Toronto Star reported. The company built the line to supply the country’s first LNG export plant. In June, the company began Canada’s largest-ever corporate bond deal, selling $5.2 billion in notes to cover construction debt.

TC Energy plans to release its second-quarter results on Aug. 1.

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