John Mercury speaks with Mergermarket for its look at how intense competition south of the border is turning the sights of U.S. PE firms specialized in the energy sector to Canada.
John says it is only natural for U.S.-based firms to evaluate Canadian assets. U.S. financial investors have always been active in Canada's energy sector, although their activity slowed down appreciably following the 2014 oil price crash. But that trend is now reversing.
A number of U.S.-based infrastructure and energy-oriented PE firms, such as Blackstone and Carnelian Energy Capital are actively scouting Canada for investment opportunities, John points out.
The recent completion of the Trans Mountain pipeline expansion as well as the building of Canada's first LNG plant, which is expected to become operational in mid-2025, has improved the investment climate of the country's energy sector, John says.