GLOBAL - The Canada Pension Plan Investment Board (CPPIB) has acquired a 24.1% stake in the Gassled Joint Venture from the Norwegian oil and gas company Statoil, alongside two other institutional investors.
CPPIB, the asset manager for the CAD$148bn (€108bn) Canada Pension Plan, acquired the stake as part of a consortium also including Allianz Capital Partners and the Abu Dhabi Investment Authority (ADIA).
The deal is valued at NOK17.3bn (€2.2bn) and will see CPPIB investing as much as NOK4bn in equity.
Gassled was established in 2003 in an unincorporated joint venture, which owns the majority of the gas transport infrastructure on the Norwegian Continental Shelf.
The company is expected to benefit from the growth in European gas demand and Norway's long-term position as a key supplier of gas to Europe.
André Bourbonnais, senior vice-president, private investments for CPPIB, said the investment was a good fit for their infrastructure portfolio, as well as their 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," adding that Norway's transparent regulatory environment was attractive to investors such as CPPIB.
"Gassled represents a highly promising investment for CPPIB, and an opportunity to enter into a long-term partnership with like-minded investors", Bourbonnais said.
The transaction is subject to several regulatory approvals and is still yet to be approved by the Norwegian Ministry of Petroleum and Energy.