Connect with us

Infra

Pembina Gas Infrastructure to buy 50% stake in Kaybob Complex 

Published

on

Pembina Gas Infrastructure to buy 50% stake in Kaybob Complex 

Pembina Gas Infrastructure (PGI), a joint venture between Pembina Pipeline and KKR, has struck a deal to purchase a 50% interest in Whitecap Resources‘ 15-07 Kaybob Complex in Alberta, Canada. 

The agreement, valued at C$420m, also includes a commitment to support the development of infrastructure in Whitecap’s Lator growth area.   

Whitecap’s 15-07 Kaybob Complex has a natural gas processing capacity of 165mcf/d and a condensate stabilisation capacity of 15,000 barrels per day.  

Following the sale, Whitecap will maintain operatorship of the assets. 

Under the terms of the agreement, Whitecap will enter into a long-term take-or-pay contract for PGI’s capacity at the Kaybob Complex.  

Additionally, Whitecap has committed to an area of dedication for all volumes it produces in the area. 

Access the most comprehensive Company Profiles
on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free
sample

Your download email will arrive shortly

We are confident about the
unique
quality of our Company Profiles. However, we want you to make the most
beneficial
decision for your business, so we offer a free sample that you can download by
submitting the below form

By GlobalData







Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Whitecap’s Lator area includes the construction of a new battery and gathering lateral, known as the Lator Infrastructure.  

PGI will retain ownership of this infrastructure, while Whitecap has agreed to long-term take-or-pay contracts for priority access. 

The deal also extends to Whitecap’s other long-term take-or-pay contracts with PGI at the Musreau gas plant within the Cutbank Complex and the K3 gas plant.  

Besides PGI, Pembina Pipeline has also signed a combination of new and extended long-term integrated transportation, fractionation and marketing services agreements with Whitecap.  

PGI president & CEO Chris Rousch said: “Our ability to provide unique and value-added solutions to support Whitecap’s development in both the Montney and Duvernay demonstrates our leading advantage and is why our customers choose us.  

“These plays have significant growth potential, and we are proud to be Whitecap’s infrastructure partner. The transaction further demonstrates the ability for Pembina’s integrated value chain to meet the growth demands of our customers.” 

Last week, Pembina Pipeline and the Haisla Nation reached a final investment decision on the Cedar LNG project, a $4bn floating liquefied natural gas facility in British Columbia, Canada.  

The facility is expected to have a capacity of 3.3 million tonnes per annum and is due to begin operations by the end of 2028. 


Continue Reading