Mubasher TV
Contact Us Advertising   العربية

US’ KKR buys 65% equity interest in Canadian gas project

US’ KKR buys 65% equity interest in Canadian gas project

Mubasher: American global investment firm KKR signed a definitive agreement to acquire a 65% equity interest in the Coastal GasLink Pipeline Project in Canada from Canadian natural gas company TC Energy Corporation.

Coastal GasLink includes an estimated CAD 6.6 billion (around $5 billion) construction of 670 kilometres of natural gas pipeline and associated facilities, according to a press release published on Thursday.

“We are excited to partner with TC Energy, a world-class infrastructure developer, on this critical project. Coastal GasLink represents our third investment in infrastructure supporting Canada’s natural gas industry,” head of North American infrastructure at KKR, Brandon Freiman, said.

All necessary regulatory permits have been received for the project and construction activities have commenced. The project is backed by 25-year transportation service agreements with the big five natural gas companies in Canada.

“We believe the export of Canadian natural gas to global markets will deliver significant benefits for the Canadian economy and local communities in Western Canada, and enable meaningful progress toward reducing global emissions,” Freiman commented.

It is worth highlighting that HSBC Securities Canada and TD Securities are serving as financial advisors to KKR, while Osler, Hoskin & Harcourt LLP is acting as legal counsel to the company.

Earlier in December, KKR acquired OverDrive, Inc. from Rakuten USA, which is a leading digital reading platform that serves an expanding network of 43,000 libraries and school in above 75 countries.