Suncor today announced the signing of agreements with eight
Indigenous communities in the Regional Municipality of Wood Buffalo
(RMWB) to acquire all of TC Energy’s 15 per cent equity interest in
the Northern Courier Pipeline Limited Partnership. This historic
partnership includes Suncor, three First Nations and five Métis
communities who will own a 15 per cent stake in this pipeline asset
with a value of approximately $1.3 billion, which will provide
long-term, stable revenues that will benefit the communities for
decades to come.
The purchase of Northern Courier Pipeline will be completed by
Astisiy Limited Partnership (Astisiy), which is comprised of Suncor
and a partnership of the following communities:
Athabasca Chipewyan First Nation |
Chipewyan Prairie First Nation |
Conklin Métis Local 193 |
Fort Chipewyan Métis Local #125 |
Fort McKay Métis Nation |
McMurray Métis |
Fort McMurray #468 First Nation |
Willow Lake Métis Nation |
With this collaboration in mind, Suncor obtained the rights to
purchase all of TC Energy’s 15 per cent equity interest in 2019, as
part of Northern Courier Pipeline’s execution of long-term,
non-recourse financing of $1 billion and TC Energy's sale of its
remaining 85 per cent interest to the Alberta Investment Management
Corporation. The pipeline, which connects the Fort Hills asset to
Suncor’s East Tank Farm asset, will be operated by Suncor upon
completion of the purchase by Astisiy. The transaction is
anticipated to close in the fourth quarter of 2021, subject to
customary closing conditions and the required regulatory
approvals.
The Astisiy partners will benefit from revenues generated
through competitive tolls from long-term transportation and
terminalling services agreements supporting the pipeline,
regardless of the price of crude. The partnership is expected to
generate gross revenues of approximately $16 million annually for
its partners and provide reliable income that the Indigenous
communities can use at their discretion for decades to come.
The Indigenous communities’ participation in this transaction is
funded by non-recourse financing that is supported by a loan
guarantee of up to $40 million from the Alberta Indigenous
Opportunities Corporation. TD Securities Inc. acted as Financial
Advisor and Debt Arranger for the Indigenous communities in this
transaction.
This investment and partnership are a result of years of
collaboration and negotiations among all partners. An example of
economic reconciliation, this partnership is unprecedented in this
industry, given the number of Indigenous communities involved in
this type of project.
Quotes
“We’re excited to have eight new business partners in the RMWB
and continue on our Journey of Reconciliation with yet another
opportunity for increased participation by Indigenous communities
in our business. Suncor’s Journey includes our commitment to learn
about Indigenous culture and history with open hearts and minds, to
stretch our perspectives, and build genuine relationships with
Indigenous Peoples based on mutual trust and respect. We’ve heard
from communities that opportunities like this are key to helping
their communities thrive and we are proud to play a part in
supporting their members.”Mark Little, President and Chief
Executive Officer, Suncor Energy
“The Northern Courier Pipeline opportunity demonstrates
progressive relationship building and economic reconciliation
between industry and Indigenous Communities. ACFN is committed to
delivering long-term value to membership and this is yet another
example of this framework. The pipeline itself is firmly situated
in ACFN traditional territory so it is fitting that ACFN, along
with seven other Indigenous owners, share in the community benefits
made possible through this partnership with Suncor.”Allan Adam,
Chief, Athabasca Chipewyan First
Nation
“This investment in the Northern Courier Pipeline with the other
Indigenous communities in the region will sustain our people’s
future for years to come.”Shaun Janvier, Director, Chipewyan
Prairie Industry Relations LP
“Joint ventures and partnerships should benefit all parties. But
in this case, we have a deal that benefits the parties, the
community and Canada.”Valerie Quintal, Membership Director, Conklin
Métis Local 193
“Fort Chip Métis is proud with the way all parties worked
together to develop this game-changing partnership, which goes a
long way to ensuring a vibrant future for the people of our
community.” Kendrick Cardinal, President, Fort Chipewyan Métis
Local #125
“There has been a lot of talk about reconciliation. But Suncor
is walking the talk. This is an investment in a better Canada. And
the benefits of this partnership model are sustainable long-term
revenue for our community’s housing, social services and education.
This is further recognition of the Fort McKay Métis Nation’s s.35
rights within our traditional territory.”Ron Quintal, President,
Fort McKay Métis
Nation
“This partnership is historic as it includes Métis communities –
nothing like this has been done before. Astisiy will provide our
community with stable revenue over many years to come and will
allow us to continue with cultural programming and other community
initiatives that otherwise may not have been able to proceed.”
Peter Hansen, President, Fort McMurray Métis
“This partnership demonstrates our ability to be a strong player
at the table and will allow us to fund programs that otherwise
wouldn’t be able to happen. It’s our hope that industry will follow
suit and allow further opportunities for Aboriginal communities in
the North to participate in ventures such as this.”Samantha Whalen,
Councillor, Fort McMurray 468 First Nation
“We are thrilled to partner with our Indigenous brothers and
sisters in the Wood Buffalo Region to build long-term prosperity
for our community and future generations. WLMG is committed to
making bold decisions and to doing things differently, ensuring the
best future possible for our community and our families.”Justin
Bourque, CEO, Willow Lake Métis Group
“Today is a momentous and historic day that the Government of
Alberta is proud to participate in. It is gratifying to see several
Indigenous communities secure for themselves investment in natural
resource projects and bolster economic prosperity in their
communities.”Rick Wilson, Minister of Indigenous Relations,
Government of Alberta
“AIOC is extremely proud of the support we are able to offer our
Indigenous community partners in this deal. The eight Indigenous
communities involved, including both First Nations and Métis
communities, are inspirational for the partnership they developed
with one another and also with Suncor. This project encapsulates
our mission at AIOC very well – we are keenly focused on elevating
Indigenous communities by supporting their investment in projects
like this. AIOC is honoured to enhance the long-term, stable
revenues that will be generated by the Indigenous communities from
this investment, and the promise that offers both current and
future generations. We also respectfully acknowledge and commend
Suncor’s firm and ongoing commitment and dedication to building
meaningful, enduring relationships with its Indigenous partners.
All to say, this is a very exciting moment and we offer
heartfelt congratulations to all involved.”Alicia Dubois, CEO,
Alberta Indigenous Opportunities Corporation
About the Northern Courier Pipeline assetsThe
Northern Courier Pipeline and associated storage facilities are
located in the RMWB, connecting the Fort Hills asset to the East
Tank Farm Development (ETF), another Indigenous equity partnership.
The asset consists of two 90-kilometre pipelines that transport
heated or diluted bitumen and condensate, diesel or crude from Fort
Hills to the ETF; tank terminals also support the operation of the
asset, including two 300,000 barrel bitumen storage tanks, one
150,000 barrel diluent storage tank and one 50,000 barrel diesel
tank at the north end of the asset.
About Astisiy and TahsipiyThe Astisiy Limited
Partnership consists of Suncor and the Tahsipiy (Three Rivers)
Limited Partnership. Tahsipiy LP consists of the eight Indigenous
communities. Astisiy is a Cree word that means “thread made from
sinew”, which is used in Indigenous beading and for many other
uses. It is strong and binding, it connects individual beads into
beautiful art, yet is a tough fibrous tissue uniting muscle to bone
and has been used to make traditional implements like bows.
Legal Advisory – Forward-Looking
Information
This news release contains certain forward-looking information
and forward-looking statements (collectively referred to herein as
“forward-looking statements”) within the meaning of applicable
Canadian and U.S. securities laws. Forward-looking statements are
based on Suncor’s current expectations, estimates, projections and
assumptions that were made by the company in light of its
information available at the time the statement was made and
consider Suncor’s experience and its perception of historical
trends, including expectations and assumptions concerning: the
accuracy of reserves estimates; the current and potential adverse
impacts of the COVID-19 pandemic and future waves and any
associated policies around current business restrictions,
shelter-in-place orders or gatherings of individuals; commodity
prices and interest and foreign exchange rates; the performance of
assets and equipment; capital efficiencies and cost savings;
applicable laws and government policies; future production rates;
the sufficiency of budgeted capital expenditures in carrying out
planned activities; the availability and cost of labour, services
and infrastructure; the satisfaction by third parties of their
obligations to Suncor; the development and execution of projects;
and the receipt, in a timely manner, of regulatory and third-party
approvals. In addition, all other statements and information about
Suncor’s strategy for growth, expected and future expenditures or
investment decisions, commodity prices, costs, schedules,
production volumes, operating and financial results and the
expected impact of future commitments are forward-looking
statements. Some of the forward-looking statements and information
may be identified by words like “expects”, “anticipates”, “will”,
“estimates”, “plans”, “scheduled”, “intends”, “believes”,
“projects”, “indicates”, “could”, “focus”, “vision”, “goal”,
“outlook”, “proposed”, “target”, “objective”, “continue”, “should”,
“may” and similar expressions.
Forward-looking statements in this news release include
references to expectations regarding Suncor’s investment in the
Northern Courier Pipeline in partnership with eight Indigenous
communities, including: the anticipated ownership structure; the
expected benefits of the transaction; that Suncor will become
operator of the pipeline assets; the expectation that the Northern
Courier Pipeline will generate stable revenue in the form of tolls
regardless of the price of crude which will provide reliable
incomes for the communities to use at their discretion; and the
expected closing date for the transaction.
Forward-looking statements and information are not guarantees of
future performance and involve a number of risks and uncertainties,
some that are similar to other oil and gas companies and some that
are unique to Suncor. Suncor’s actual results may differ materially
from those expressed or implied by its forward-looking statements,
so readers are cautioned not to place undue reliance on them.
Suncor’s Management’s Discussion and Analysis dated July 28,
2021, its Annual Information Form and Annual Report to
Shareholders, each dated February 24, 2021, and its Form 40-F dated
February 25, 2021 and other documents it files from time to time
with securities regulatory authorities describe the risks,
uncertainties, material assumptions and other factors that could
influence actual results and such factors are incorporated herein
by reference. Copies of these documents are available without
charge from Suncor at 150 6th Avenue S.W., Calgary, Alberta T2P
3E3; by email request to invest@suncor.com; by calling
1-800-558-9071; or by referring to suncor.com/FinancialReports or
to the company’s profile on SEDAR at sedar.com or EDGAR at sec.gov.
Except as required by applicable securities laws, Suncor disclaims
any intention or obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Suncor Energy is Canada’s leading integrated energy company,
with a global team of over 30,000 people. Suncor’s operations
include oil sands development, production and upgrading, offshore
oil and gas, petroleum refining in Canada and the US, and our
national Petro-Canada retail distribution network (now including
our Electric Highway network of fast-charging EV stations). A
member of Dow Jones Sustainability indexes, FTSE4Good and CDP,
Suncor is responsibly developing petroleum resources, while
profitably growing a renewable energy portfolio and advancing the
transition to a low-emissions future. Suncor is listed on the UN
Global Compact 100 stock index. Suncor’s common shares (symbol: SU)
are listed on the Toronto and New York stock exchanges.
Suncor works with Indigenous Peoples across Canada to increase
their participation in energy development. One of the ways we do
this is through business development opportunities. Suncor has
worked with more than 150 Indigenous communities, including those
in the Regional Municipality of Wood Buffalo—home to our oil sands
operations—and other locations through our Petro-Canada branded
retail, wholesale and lubricant products and services. In 2020, we
spent over $900 million in goods and services with Indigenous
businesses. There are more than 40 Petro-Canada branded gas
stations owned by First Nations and one wind project where a First
Nation is an equity partner.
For more information about Suncor, visit our web site at
suncor.com, follow us on Twitter @Suncor or Living our Purpose.
Suncor media inquiries:403-296-4000media@suncor.com |
Suncor investor inquiries:800-558-9071invest@suncor.com |
Alberta Indigenous Opportunities CorporationShauna MacDonald –
Brookline PR403-585-4570smacdonald@brooklinepr.com |
Athabasca Chipewyan First NationJason
Schulz780-215-6527Jason.schulz@acfn.com |
Chipewyan Prairie First Nation Shaun Janvier780-881-9206 |
Conklin MétisMorten Paulsen403-399-3377morten@paulsengroup.ca |
Fort Chipewyan MétisTammy Rieltammy.riel@fortchipmetis.ca |
Fort McKay Métis NationMorten
Paulsen403-399-3377morten@paulsenengroup.ca |
McMurray MétisMelanie Walsh – Social Media and Events
Coordinator780-838-3260 |
Fort McMurray 468 First NationCouncillor Samantha
Whalen780-799-0110Samantha.whalen@fmfn468.com |
Willow Lake Métis Nation Peter Pilarski 403-462-1160 |
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