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Brookfield Infrastructure is exploring the potential sale of Canadian natural gas pipeline operator NorthRiver Midstream in a deal that could value the business at around USD 5 billion (approximately CAD 7 billion), according to Reuters. The company has been approaching potential buyers through investment bankers amid strong demand for energy infrastructure assets. While discussions are ongoing, no transaction has been finalised. Brookfield had acquired the assets that now form NorthRiver from Enbridge in 2018 for CAD 4.3 billion and is evaluating whether to monetise the business or continue expanding it.
Brookfield Infrastructure is exploring the sale of NorthRiver Midstream, a Canadian natural gas-focused pipeline operator, in a transaction that could value the company at around CAD 7 billion (USD 5 billion), according to a Reuters report citing people familiar with the matter.
The investment firm has been working with bankers over the past few weeks to gauge interest from potential buyers. Sources told Reuters that discussions are still at an early stage, and there is no certainty that a deal will be completed. Brookfield could also decide to retain ownership of the business if it determines that doing so creates greater long-term value.
Brookfield Infrastructure and NorthRiver Midstream declined to comment on the reported sale process.
NorthRiver Midstream owns and operates natural gas gathering, processing and pipeline infrastructure serving the Montney shale formation across British Columbia and Alberta. The company transports natural gas from production fields to larger transmission pipelines that supply customers across Canada and the United States.
The business was created after Brookfield Infrastructure acquired natural gas gathering and processing assets from Enbridge in 2018 for CAD 4.3 billion. Those assets were later integrated under the NorthRiver Midstream brand, expanding Brookfield's presence in Canada's midstream energy sector.
The possible sale comes as investor interest in energy infrastructure assets continues to remain strong. Stable cash flows, long-term contracted revenues and essential infrastructure characteristics have made pipeline and midstream businesses attractive to private equity firms, pension funds, infrastructure investors and strategic buyers. This has contributed to higher valuations across the sector and encouraged several asset owners to evaluate potential divestments.
During the company's earnings call earlier this year, Brookfield Infrastructure Chief Executive Sam Pollock had indicated that the company was considering whether to invest further in NorthRiver or benefit from favourable market conditions for midstream assets. He suggested that the market environment for such businesses remained constructive, reflecting the strong demand from investors.
When Brookfield Infrastructure announced its latest quarterly earnings in the past week, the company did not discuss NorthRiver or any ongoing sale process. Companies generally do not disclose active sale discussions during earnings presentations unless they have already announced a formal transaction.
Industry experts note that valuations of Canadian midstream assets have also been supported by the country's limited expansion of new oil and gas pipeline infrastructure over recent years. Regulatory challenges and lengthy approval processes have reduced the number of new large-scale pipeline projects, increasing the strategic value of existing infrastructure networks. Although the policy environment has evolved under the administration of Mark Carney, developing major long-distance pipeline systems continues to remain a complex and time-consuming process.
Reuters reported that the outcome of Brookfield's review remains uncertain, with discussions continuing and no final decision taken on whether NorthRiver Midstream will ultimately be sold.
Source Reuters
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