July 30 (Reuters) - TC Energy ( TRP ) said on Tuesday

that it will sell a minority stake in its Nova Gas transmission

system and the Foothills pipeline assets for C$1 billion ($722.1

million) to certain indigenous Canadian communities as part of a

plan to reduce its debt and fund investments.

The company, best known for its Keystone oil pipeline, is

undergoing an overhaul. Last year, it said it would spin off its

liquids business to focus on transporting natural gas.

The stake sale is backed by the Alberta Indigenous

Opportunities Corporation (AIOC) and was negotiated by a

consortium committee representing specific indigenous

communities across Alberta, British Columbia and Saskatchewan.

This deal will enable up to 72 indigenous communities

closest to the natural gas infrastructure assets spanning

western Canada to become equity owners, TC Energy ( TRP ) said in a

statement.

The transaction is expected to close in the third quarter.

($1 = 1.3848 Canadian dollars)