SYDNEY, Oct 8 (Reuters) - Australian state pension fund QIC Ltd said it will buy a local gas storage facility from Hong Kong energy firm CLP Holdings Ltd 0002.HK for A$1.8 billion ($1.3 billion), underscoring strong demand for regulated power assets amid faltering global markets.
Conservative investors such as pension and sovereign funds are actively seeking out Australian energy assets, seeking to lock in reliable returns in a regulated, mature market.
QIC, established by the state of Queensland, said it agreed to buy Iona Gas Storage Facility in Victoria state from CLP subsidiary EnergyAustralia in a deal expected to close by the end of the year.
"Iona is an attractive core infrastructure asset for our clients with an essential role in the Australian east coast energy supply value chain," QIC Global Infrastructure head Ross Israel said in a statement.
CLP bought the assets which formed EnergyAustralia in the 1990s as the Victorian state government pushed ahead with privatisation plans. It has been looking at an IPO or a sale for the unit for several years, according to media reports.
QIC is among the most acquisitive of Australia's state-backed pension funds.
It is part of a consortium that has lodged an indicative bid for electricity distributor TransGrid, which the state of New South Wales is selling for an expected A$8 billion. urn:newsml:reuters.com:*:nL4N1125X3 Bankers also expect QIC to bid for another electricity asset in that state, Ausgrid. ($1 = 1.3879 Australian dollars)