Pembina, KKR combine NG processing assets in joint venture
Pembina Pipeline Corp. has signed a deal with private equity firm KKR to combine their western Canadian natural gas processing assets into a new joint venture.
Pembina will own a 60 per cent stake in the joint venture and serve as the operator and manager. KKR’s global infrastructure funds will hold 40 per cent.
The deal includes Pembina’s field-based natural gas processing assets, the Veresen Midstream business which is owned 55 per cent by funds managed by KKR and 45 per cent by Pembina, and Energy Transfer Canada (ETC), currently owned 49 per cent by funds managed by KKR.
The joint venture will also acquire Energy Transfer LP’s 51 per cent stake in ETC.