Canada’s largest pension fund said Tuesday it will acquire a 13% stake in Sempra Infrastructure Partners for approximately $3 billion, partnering with investment firm KKR in a major energy infrastructure deal.
Canada Pension Plan Investment Board, which manages retirement funds for more than 22 million Canadians, entered a definitive agreement to buy the indirect equity interest from Sempra, the companies announced.
The deal positions the pension fund in North American energy infrastructure as utilities navigate the transition to cleaner energy sources while maintaining natural gas operations.
The investment aligns with CPP Investments’ broader energy strategy, which includes approximately C$35 billion in sustainable energy assets spanning both traditional and renewable projects. The pension fund recently sold its stake in Peru’s main natural gas pipeline for over US$1.4 billion in August and invested $843 million in US pipeline operator Tallgrass Energy in 2024.
Sempra Infrastructure develops and operates natural gas pipelines, power generation facilities and liquefied natural gas export terminals across the US and Mexico. The company also owns more than 1,600 megawatts of renewable energy generation and a natural gas power plant.
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“Natural gas has an important role to play in the global energy transition, and LNG infrastructure is central to meeting rising global demand,” said Max Biagosch, CPP Investments’ senior managing director and global head of real assets.
CPP Investments has maintained that supporting both traditional and renewable energy companies during the transition period offers the best risk-adjusted returns for pension contributors. The fund’s energy portfolio includes investments across oil and gas, pipelines, renewables, and carbon capture technologies.
The transaction requires regulatory approvals and other closing conditions. The companies expect to complete the deal in the second or third quarter of 2026.
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