TORONTO – 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.
Canada Pension Plan Investment Board 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.
“We are excited to work with Wolf management, who are highly experienced operators in the midstream sector with a proven track record.”
CPPIB manages about $268.6 billion of assets as of June 30 on behalf of the Canada Pension Plan’s 18 million contributors and beneficiaries.
Wolf’s management team includes Gord Salahor, who is chief executive, as well as Bob Pritchard, David Schmunk, Ken Temple and Warren Peers. The team’s previous experience includes Mistral Energy and Taylor NLG Limited Partnership.