Canada-based Enbridge Inc. will sell a C$1.12 billion (US$818.83 million) minority interest in seven pipelines in Alberta to a group of indigenous communities in the largest indigenous energy partnership in North America, the company announced on Wednesday.

Athabasca Indigenous Investments (Aii), a newly formed entity of 23 First Nations and Métis communities, will acquire the 11.57% non-operating interest in the pipelines.

First Nations in Canada are divided on oil and gas projects affecting traditional lands. Some communities reject them for environmental reasons, while others appreciate the jobs and income they provide.

The Canadian government has a legal obligation to consult meaningfully with indigenous groups on major new resource projects.

Proceeds from the pipeline will help First Nations improve their quality of life by building homes and addressing a mental health crisis, Frog Lake First Nation chief Greg Desjarlais said at a news conference.

“Our people should not live in poverty in the land of milk and honey,” he said.

The agreement, which is expected to close next month, covers the pipelines in the Athabasca region of Alberta, including the Athabasca and Wood Buffalo/Athabasca Twin, and associated reservoirs that process 45% of production.

“We want to partner with indigenous communities throughout the system … on both sides of the border,” said Enbridge CEO Al Monaco. When asked if he was ready to sell part of the mainline oil network, Mr Monaco replied that it was too early to say.

Aii is making the purchase using funds from a private placement and the Alberta Government is posting a $250 million loan guarantee.

Rival TC Energy Corp earlier this year signed an option agreement to sell 10% of the Coastal GasLink pipeline to indigenous communities.

The Canadian government has also signaled its intention to sell at least part of its Trans Mountain gas pipeline to indigenous groups as the expansion approaches, which is planned for late next year. ($1 = 1.3678 Canadian dollars) (Reporting by Ankit Kumar and Rod Nickel; Editing by Uttaresh.V and Richard Chang)