Canadian pipeline operator Pembina Pipeline Corp.'s joint venture with KKR & Co. has agreed to sell its 50% stake in the Key Access Pipeline System (KAPS) to private equity firm Stonepeak Partners for C$662.5 million ($484.89 million).
The deal provides Stonepeak access to a pipeline system that moves NGL to processing facilities for export to Asia, a market with a growing appetite for North American LNG as it moves away from coal and as reduced Russian exports leave a void in global supply.
Formed in March through deals worth C$11.4 billion, the joint venture PGI is owned 60% by Pembina while KKR's global infrastructure funds hold the rest.
KAPS is a 560-km pipeline system that transports NGL between western Canada's Montney and Duvernay fields to Keyera's processing facilities in Fort Saskatchewan.
Keyera Corp. will continue holding the remaining 50% stake in KAPS and will operate the asset, Stonepeak said.
Both the companies said the sale is expected to close in the first quarter of 2023.
Recommended Reading
Could Crescent, SilverBow Buy More in South Texas After $2.1B Deal?
2024-05-17 - The combination of Crescent Energy and SilverBow Resources will yield one of the Eagle Ford’s top producers—and the pro forma E&P could look to gobble up more acreage in South Texas after closing.
Crescent Point Divests Non-core Saskatchewan Assets to Saturn Oil & Gas
2024-05-07 - Crescent Point Energy is divesting non-core assets to boost its portfolio for long-term sustainability and repay debt.
Brett: Oil M&A Outlook is Strong, Even With Bifurcation in Valuations
2024-04-18 - Valuations across major basins are experiencing a very divergent bifurcation as value rushes back toward high-quality undeveloped properties.
SilverBow Gears Up for Proxy Fight with Kimmeridge
2024-04-09 - Both SilverBow Resources and Kimmeridge Energy Management have proposed a slate of candidates for the board of directors with a vote set for May 21.
Kimmeridge-SilverBow Public Feud Gets Ugly as Firm Suggests New Directors
2024-04-01 - Kimmeridge Energy Management said in a letter that should SilverBow continue to “stonewall” consideration of a merger offer, shareholders should elect three new independent board members.