The Caisse de dépôt et placement du Québec has entered into definitive agreements with ConocoPhillips to purchase its 16.55% interest in Colonial Pipeline Company and Colonial Ventures LLC for US$850 million.
Colonial Pipeline is the largest refined petroleum products pipeline in the U.S. It extends more than 8,800 kilometres between the Gulf of Mexico and the northeastern U.S. and transports the equivalent of 2.3 million barrels per day.
Prior to being finalized, the transaction will be subject to a right of first refusal by the shareholders of Colonial Pipeline. Based on the outcome, the Caisse could close the transaction during the first quarter of 2012.
“The Caisse is always interested in quality assets that yield stable, long-term returns,” said Normand Provost, executive vice-president, private equity and chief operations officer at the Caisse. “This particular investment targets an infrastructure project in a regulated industry that we know well through our investments in Gaz Métro, Interconnector, Enbridge and Fluxys.”