*

Sale marks Enbridge's ( ENB ) fourth equity deal with First

Nations

*

Indigenous consortium will receive C$400 million in

federal loan

guarantees

*

Canada's energy sector sees Indigenous co-ownership as a

pathway

to oil and gas development

(Rewrites first paragraph; updates throughout with quotes from

news conference and adds additional background)

By Amanda Stephenson

May 15 (Reuters) - Canadian pipeline operator Enbridge ( ENB )

is selling a stake in its Westcoast natural gas system

to a consortium of 36 First Nations, the first deal to include

financing from a new federal loan program aimed at helping

Indigenous groups own parts of resource projects.

Enbridge ( ENB ) said on Thursday that Stonlasec8 Indigenous

Alliance will buy a 12.5% stake in its Westcoast pipeline for

C$715 million ($511.19 million).

The pipeline stretches 2,900 kilometers (1,802 miles) from

northeast British Columbia 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

energy projects as they seek economic benefits from projects on

their land, while companies look to raise capital and secure

Indigenous support that can be critical to regulatory approval.

Enbridge ( ENB ) has now struck four equity deals with Indigenous

groups, including the 2022 sale of a C$1.12-billion minority

stake in seven Alberta oil pipelines to a group of First

Nations.

The Canadian government has said it is interested in selling

a stake in its C$34-billion Trans Mountain oil pipeline to

Indigenous groups.

For the deal announced on Thursday - which Enbridge ( ENB ) said was

in the works for two years - Stonlasec8 will receive C$400

million in loan guarantees from the Canada Indigenous Loan

Guarantee Corporation.

The federal entity, which launched in December, aims to

provide up to $10 billion in Indigenous loan guarantees to help

First Nations access capital.

In a March letter to federal political party leaders, the

CEOs of 14 energy companies - including Enbridge ( ENB ) - said

increasing Indigenous ownership in energy infrastructure is

necessary if the country is to expand its oil and gas sector and

build pipelines.

Chief David Jimmie, president and chair of Stonlasec8 and

head of the Squiala First Nation, said energy assets such as the

Westcoast pipeline have for decades crossed Indigenous

territory, but until now communities have been unable to reap

the financial benefits.

He said he is pleased energy companies increasingly see

co-ownership as vital to getting the necessary support from

First Nations for projects on Indigenous land.

"They recognize that without Indigenous participation,

you're going to find it more and more difficult to approach

these types of projects," Jimmie said.

($1 = 1.3987 Canadian dollars)