May 15 (Reuters) - Canada's Enbridge ( ENB ) said on

Thursday that Stonlasec8 Indigenous Alliance will buy a 12.5%

stake in the pipeline operator's Westcoast system for C$715

million ($511.19 million), as Indigenous communities look to own

stake in energy firms.

The pipeline system stretches over 2,900 kilometers from

northeast British Columbia (B.C.) and the B.C.-Alberta border to

the Canada-U.S. border, with a capacity of 3.6 billion cubic

feet of natural gas per day.

Canada's First Nations are increasingly buying stakes in

Canadian energy projects as they seek economic benefits from

projects on their land, while companies look to raise capital.

The Canadian government is also interested in selling a

stake of its C$34 billion Trans Mountain oil pipeline to

Indigenous groups.

Enbridge ( ENB ) said that a unit of Canada Development Investment

Corporation will provide C$400 million in loans to the Alliance,

which represents 36 First Nations in B.C.

The transaction is expected to close by the end of the

second quarter.

($1 = 1.3987 Canadian dollars)