Canadian pipeline operator Pembina Pipeline Corp.'s joint venture with KKR & Co. is selling for C$662.5 million ($484.89 million) its 50% stake in the Key Access Pipeline System to private equity firm Stonepeak Partners.
The agreement allows Stonepeak to maintain a pipeline system that conveys NGL to processing facilities for export to Asia, a market with a raising appetite for North American LNG as it refuses to use coal and as the decrease in Russian exports leaves a void in global supply.
The joint venture PGI, which was formed in March through deals and estimated at C$11.4 billion, is possessed 60% by Pembina while KKR's global infrastructure funds have the rest.
Being a 560-km pipeline system, KAPS conveys NGL between western Canada's Montney and Duvernay fields to Keyera's processing facilities in Fort Saskatchewan.
Keyera Corp. will continue possessing the rest 50% stake in KAPS and will maintain the asset. The sale is anticipated closing in the first quarter of 2023.
Pembina owns pipelines that convey hydrocarbon liquids and natural gas products produced primarily in Western Canada. It also possesses gas gathering and processing facilities and an oil and natural gas liquids infrastructure and logistics business. Its operations along the hydrocarbon value chain allow it to offer a full slate of midstream and marketing services to its customers in the energy industry.
Stonepeak's renewables portfolio is expected to produce almost 2,500-gigawatt hours of annual renewable capacity, which is enough to power about 235,000 US households per year.
West Texas Gas has surveyed roughly 5,000 miles of pipe, made improvements, and avoided almost 8.5 million cubic feet per day of emissions. Its renewables portfolio companies have avoided 157k metric tons of lifetime carbon emissions, which equals taking 124k cars off the road for 1 year.
