THE CANADIAN PRESS
TORONTO — The Canada Pension Plan Investment Board is part of a consortium buying a stake in a natural gas transportation network.
The board, along with Allianz Capital Partners and the Abu Dhabi Investment Authority, is acquiring a 24.1-per-cent stake in Gassled from Statoil ASA.
Gassled Is one of the world's largest offshore natural gas transportation networks.
The buyer is Solveig Gas Norway AS, a holding company owned by the consortium partners.
The total value of the transaction is approximately $3.18-billion to which the Canadian pension plan will commit approximately $738-million.
CPPIB senior vice-president Andre Bourbonnais says the investment in Gassled is a “good fit” with the board's portfolio and investment strategy.
“As a long-term investor, we look for infrastructure assets that will deliver stable returns over a long time horizon and Gassled fits this criteria.”
Established in 2003, Gassled owns most of the gas transport infrastructure on the Norwegian continental shelf.
Completion of the transaction is subject to certain regulatory approvals including by the Norwegian Ministry of Petroleum and Energy.
The Canada Pension Plan Investment Board invests funds not needed by the Canada Pension Plan to pay current benefits and is managed independently of the CPP and at arm's length from governments.Report Typo/Error
Follow us on Twitter: