Canada’s largest pension fund manager is committing $1 billion for energy infrastructure acquisitions in Western Canada, in partnership with a private Calgary-based firm with expertise in the sector.
CPP Investment Board (CPPIB) said Wednesday it will provide the funding for mid-stream acquisitions that will be identified and evaluated by Wolf Infrastructure Inc.
Their focus will be on processing facilities, gathering systems, pipelines, storage facilities and terminals used by oil, gas and liquids producers—collectively considered to be “midstream” infrastructure.
“As a long-term investor, we see midstream as an attractive sector given the significant investment required in Western Canada to support growth in natural gas and natural gas liquids production in new areas,” said Avik Dey, CPPIB’s managing director for natural resources.
CPPIB manages about $268.6 billion of assets as of June 30 on behalf of the CPP’s 18 million contributors and beneficiaries.