Wolf Infrastructure Inc. and Canada Pension Plan Investment Board (CPPIB) announced yesterday that they have signed an agreement to establish a midstream energy infrastructure vehicle focused on opportunities in Western Canada.
As part of the agreement, Wolf will identify and evaluate opportunities for the vehicle to acquire, expand and develop midstream assets supporting natural gas, oil and natural gas liquids (NGLs) production, including processing facilities and gathering systems, pipelines, hydrocarbon storage and terminals. CPPIB will provide funding for such future acquisitions and development of midstream opportunities, which will be operated and managed by the Wolf management team. The vehicle’s goal is to initially invest more than $1 billion in the sector.
Wolf’s management team will continue to build on its success in commercial and operational optimization of facilities, asset evaluation and acquisition. The team will also leverage their expertise in origination and execution of greenfield energy infrastructure projects in Western Canada.
Gord Salahor, Chief Executive Officer, said:
“Developing assets under a well-funded long-term vehicle will offer midstream customers greater certainty as they grow their operations. We’re delighted to launch this vehicle with CPPIB. Given the long duration nature of midstream projects and the need for follow-on investment, CPPIB’s ability to provide long-term capital is appealing to producers seeking a stable midstream provider.”
Avik Dey, Managing Director, Head of Natural Resources, CPPIB, said:
“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. We are excited to work with Wolf management, who are highly experienced operators in the midstream sector with a proven track record.”