The Caisse de dépôt et placement du Québec has acquired a 25% equity interest in Interconnector (UK) Limited, a United Kingdom gas transporter, which owns and operates a bi-directional pipeline linking the UK and Belgium.

The Caisse acquired the shareholding from BG Group for £165 million ($359 million).

“This transaction perfectly meets the Caisse’s Private Equity Group’s investment criteria. First and foremost, this asset is of very high quality. Interconnector is the owner of a strategic natural gas transportation link between the United Kingdom and the rest of Europe. Moreover, the rates for this pipeline are fixed until 2018, which guarantees a stable and predictable income stream,” said Ghislain Gauthier, first vp infrastructures and energy from the Private Equity Group at the Caisse.

The Caisse manages funds for pension and insurance plans in the Quebec public and private sectors. As at Dec. 31 2006, the Caisse’s net assets under management were worth $143.5 billion. The Private Equity sector’s portfolios had a net worth of $16.8 billion.

(£1 = approx. $2.14)