en.Wedoany.com Reported - Brookfield Infrastructure Corp is exploring the sale of its Canadian natural gas pipeline operator NorthRiver Midstream, with people familiar with the matter saying the deal could value the latter at around C$7 billion (approximately US$5 billion).

The investment firm has been working with bankers in recent weeks to gauge buyer interest in a potential sale, according to sources, who requested anonymity because the discussions are private. Rising demand for energy infrastructure assets is pushing up valuations and prompting some owners to consider divesting business units they have held for years.

The sources cautioned that there is no guarantee a deal for NorthRiver will be reached, and Brookfield Infrastructure could ultimately retain the business. Both Brookfield Infrastructure and NorthRiver declined to comment on the matter.

According to NorthRiver's website, the company operates pipelines and processing infrastructure that transport natural gas extracted from the Montney shale formation in British Columbia and Alberta to larger-diameter pipelines for delivery to customers in Canada and the U.S. Brookfield Infrastructure agreed in 2018 to acquire these gathering and processing assets from Enbridge for C$4.3 billion, subsequently integrating them under the NorthRiver Midstream brand.

During an April 29 earnings call, Brookfield Infrastructure CEO Sam Pollock said the company was weighing whether to continue pursuing growth opportunities at NorthRiver or capitalize on what he called a "fairly constructive" market for midstream assets. The company did not mention NorthRiver or discuss it when it released its quarterly results on Thursday. Except in rare cases, companies typically do not disclose ongoing sale plans during earnings calls.

Energy infrastructure assets are attracting private equity firms, pension funds, and infrastructure investors seeking stable cash flows, while publicly listed midstream companies are also looking to expand their networks. In recent years, Canada has taken a cautious approach to approving large, long-distance oil and gas pipeline projects, limiting the supply of new infrastructure and providing support for valuations of existing midstream assets. Despite a shifting policy environment under Prime Minister Mark Carney's government, large pipeline systems remain difficult to replicate.