The Canada Pension Plan Investment Board (CPPIB) is to partner with Wolf Infrastructure to invest CAD1bn (€663m) in domestic energy.
The pension plan said the joint venture would focus on energy infrastructure in Western Canada.
Wolf will identify and evaluate opportunities for the vehicle, with a focus on the midstream natural gas sector.
Avik Dey, managing director and head of natural resources at 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.”
The joint venture will target oil and natural-gas-liquids production, including processing facilities and gathering systems, pipelines, hydrocarbon storage and terminals.
CPPIB will fund acquisitions and development, with Wolf, run by Gord Salahor, managing assets.
Gord Salahor, chief executive at Wolf, said: “Developing assets under a well-funded long-term vehicle will offer midstream customers greater certainty as they grow their operations.
“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.”