What’s good for the Canadian goose doesn’t hold for the American eagle. At least, not for former Brookfield chairman Mark Carney.
That’s because the Liberal candidate for prime minister, a vocal opponent of major new pipelines in Canada, is now facing scrutiny as Brookfield Asset Management — the investment giant he once chaired — closes in on a USD$9 billion deal to acquire Colonial Pipeline, the largest fuel transport system in the United States.
It comes as he refused to repeal Bill C-69, the ‘No New Pipelines Act’ at a rally in Winnipeg on Tuesday. Under C-69, Carney would maintain a tanker ban on Canada’s West Coast that effectively kills oil export pipelines from Alberta, including Northern Gateway.
Citing anonymous sources, Reuters reported that a deal with Brookfield to buy Colonial is imminent, possibly around the April 28 election.
In a twist of supreme irony, the deal includes Caisse de dépôt et placement du Québec’s (CDPQ) 16.55% ownership stake. Why? Because Quebec’s pension plan has committed to divesting itself of oil and gas assets.
Both Brookfield and CPDQ — along with co-owners Shell and investment firm KKR — declined comment. Quebec’s CDPQ bought its stake in Colonial for $850 million in 2012 from ConocoPhillips.
The deal will see Brookfield take control of a 8,850-kilometre pipeline network that moves more than 380 million litres of refined products from Houston to New York. The acquisition follows a broader trend of private equity firms snapping up energy transport assets with stable, long-term returns.
Both Brookfield and CPDQ — along with co-owners Shell and investment firm KKR — declined comment.
Carney, who opposed the now-cancelled Northern Gateway pipeline and has indicated that Quebec should effectively have a veto over the proposed Energy East pipeline to St. John, NB, has long positioned himself as an environmental advocate — on this side of the border.
Yet, under his leadership, Brookfield aggressively expanded into energy infrastructure, including the purchase of fossil fuel assets like Colonial, which is considered to be an ‘irreplaceable’ piece of US energy infrastructure.
During his tenure, Carney was co-chair of two investment funds — both registered in Bermuda — worth about USD$25 billion. Its public documents boasted they are each “dedicated to the transition to a net-zero economy.”
Yet, Brookfield’s purchase of Colonial suggests a more pragmatic view when it comes to pipelines, at least, outside of Canada.
That’s presumably why he opposed Northern Gateway, which would have carried one million barrels per day (bpd) of Alberta oil to the Pacific via Kitimat, BC.
On Tuesday in Winnipeg, Carney committed to maintaining Bill C-69, The No New Pipelines Act is elected prime minister.
While Carney has stopped short of outright rejecting Energy East, he has suggested that Quebec’s opposition alone would be enough to block it — despite growing calls for Canadian energy exports to European markets struggling with energy security.
Even among American observers and market analysts the contradiction is hard to ignore, even as they maintain a ‘hold’ rating on the company’s shares.
Meanwhile, Quebec politicians—including Bloc Québécois leader Yves-François Blanchet—have fought fiercely against pipelines like Energy East, despite relying on imported oil.
Carney has so far sidestepped questions about whether Canada should reconsider its pipeline policies, especially in light of Europe’s demand for secure, non-Russian energy.
But with Brookfield betting billions on US fossil fuel transport, critics will likely — and rightly — ask: If pipelines make financial sense for American energy, why not for Canadian energy as well?
