Pembina, KKR form gas processing JV

By Keefe Borden16 August 2022

Pembina owns an integrated network of hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and a growing export terminals business. (Photo: Pembina.)

Pembina Pipeline Corporation has formed a gas processing joint venture with private equity giant KKR in Western Canada.

The new joint venture, Pembina Gas Infrastructure, has a combined processing capacity of 5 billion cubic feet per day. PGI is strategically positioned to serve customers throughout the Montney and Duvernay trends from central Alberta to northeast British Columbia. Pembina owns 60% of PGI and operates and manages PGI facilities while KKR’s global infrastructure funds own the remaining 40%.

The companies did not provide a timetable for construction and operation of the new plant. 

“We are excited to officially announce the creation of PGI, a premier gas processing entity in Western Canada that will provide incredible value for Pembina, our partner KKR, and our customers. Pembina has enjoyed a strong relationship with KKR at Veresen Midstream over the past four years and the creation of PGI is a natural next step that will unlock growth and provide increased service offerings to customers throughout the Montney and Duvernay formations, from central Alberta to northeast British Columbia,” said Scott Burrows, Pembina’s president, and CEO.

As previously announced, Pembina’s board declared a common share cash dividend for August 2022 of $0.21 per share to be paid, subject to applicable law, on September 15, 2022, to shareholders of record on August 25, 2022.

Pembina’s board previously approved a $0.0075 per common share increase to its monthly common share dividend rate, to $0.2175 per common share per month (representing an increase of 3.6 percent), subject to closing of the joint venture transaction with KKR. The first dividend under which the increase will take effect is expected to be declared in early September 2022, and payable on or about October 14, 2022.

Pembina Pipeline Corporation is an energy transportation and midstream service provider that has served North America’s energy industry for more than 65 years. Pembina owns an integrated network of hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and a growing export terminals business.

Pembina is structured into three Divisions: Pipelines Division, Facilities Division and Marketing & New Ventures Division. Pembina’s common shares trade on the Toronto and New York stock exchanges under PPL and PBA, respectively.

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