Brookfield Weighs Sale of Canadian Pipeline Operator NorthRiver in Potential $5 Billion Deal
Brookfield Infrastructure is exploring a potential sale of NorthRiver Midstream, a Canadian natural gas gathering, processing and pipeline operator, in a deal that could value the business at about $5 billion.
(P&GJ) — Brookfield Infrastructure is exploring a potential sale of NorthRiver Midstream, a Canadian natural gas gathering, processing and pipeline operator, in a transaction that could value the business at about C$7 billion ($5 billion), according to people familiar with the matter.
The investment firm has been working with financial advisers in recent weeks to gauge interest from potential buyers, although sources cautioned that no transaction is certain and Brookfield could ultimately decide to retain the business.
NorthRiver Midstream owns natural gas gathering pipelines and processing infrastructure serving the Montney shale in British Columbia and Alberta. Its network connects production from the basin to larger transmission pipelines that deliver natural gas to customers across Canada and the United States.
Brookfield acquired the assets in 2018 through a C$4.3 billion purchase of Enbridge's natural gas gathering and processing business. Those assets were later combined under the NorthRiver Midstream name.
The potential sale comes as demand for energy infrastructure assets remains strong among infrastructure funds, pension investors and strategic buyers seeking stable, long-term cash flows. Existing Canadian midstream systems have become particularly attractive as permitting challenges and the limited construction of new long-haul oil and gas pipelines have increased the value of established infrastructure.
Brookfield executives previously signaled they were evaluating NorthRiver's future. During the company's April earnings call, Chief Executive Sam Pollock said Brookfield was considering whether to pursue additional growth opportunities for the business or capitalize on what he described as a favorable market for midstream assets.
Neither Brookfield Infrastructure nor NorthRiver Midstream commented on the reported sale process.