Pembina Pipeline, KKR Form C$11.4 Billion Joint Venture

By Adriano Marchese

Pembina Pipeline Corp. said Tuesday that it is creating a joint venture with U.S. investment company KKR & Co. in which they would combine their western Canadian natural gas processing assets.

The Canadian oil and gas transportation and storage infrastructure company said it would own 60% of the new JV and would act as operator and manager, while the remaining 40% would be owned by KKR's global infrastructure funds.

The assets included are Pembina's field-based natural gas processing assets, the Veresen Midstream business which funds managed by KKR own 55% and Pembina 45%, as well as the business currently carried on by Energy Transfer Canada, which KKR-managed funds own 49%.

The company said the ascribed value of all the transactions amount to 11.4 billion Canadian dollars, or US$8.99 billion.

"The formation of this new joint venture is a natural extension of our relationship, unlocks value for Pembina and creates another growth platform," Pembina President and Chief Executive Officer Scott Burrows.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

March 01, 2022 08:29 ET (13:29 GMT)

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