Canada-based investor Brookfield Asset Management is reportedly set to acquire the East West Pipeline (EWPL), a natural gas pipeline system owned by a subsidiary of Indian conglomerate Reliance Industries.

The deal values EWPL, which has been posting losses, at an enterprise value of around Rs140bn ($2bn), economictimes.indiatimes.com reported.

Previously known as Reliance Gas Transportation Infrastructure, the EWPL operates a 1,400km common carrier pipeline from Kakinada in the Indian state of Andhra Pradesh on the east coast to Bharuch in Gujarat on the west coast.

In order to execute the transaction, Brookfield is sponsoring an infrastructure investment trust (InvIT) called India Infrastructure Trust as the acquisition vehicle.

Last week, the Competition Commission of India (CCI) gave its approval for the transaction.

“Brookfield is reportedly in talks with lenders such as ICICI Bank to secure financing for the transaction.”

Additionally, the Canadian company has filed an application with the Securities and Exchange Board of India (Sebi) for registering the InvIT.

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The parties will make a formal joint announcement about the transaction after the receipt of the Sebi approval later this month, the report stated citing sources in knowledge of the matter.

The publication also added that EWPL has already filed an application with the National Company Law Tribunal for the transfer of the pipeline held under EWPL to an entity called Pipeline Infrastructure (PIPL), which is a 100%-owned subsidiary of Reliance Industries Holding.

Brookfield is reportedly in talks with lenders such as ICICI Bank to secure financing for the transaction.

EWPL transports natural gas produced by Reliance-BP from the Krishna Godavari (KG) basin in Andhra Pradesh and links to users on the west coast.