Pembina Gas Infrastructure to acquire Veren's midstream assets
Published by Elizabeth Corner,
Senior Editor
World Pipelines,
Canada’s Pembina Gas Infrastructure (PGI) has signed an agreement to acquire midstream assets from Veren in a deal valued at CAN$400 million (US$294.7 million).
PGI is a joint venture between Pembina Pipeline Corporation (Pembina) and investment company KKR.
The acquisition includes four batteries in the Gold Creek and Karr areas, boasting a natural gas handling capacity of 320 million ft3/d and a liquids handling capacity of 53 000 bpd.
These assets are connected to PGI's Patterson Creek Gas Plant and Pembina's Peace Pipeline system.
Veren will maintain operational control of the acquired assets, with operating expenses and maintenance capital directly allocated to Veren.
This arrangement also includes Veren assuming operatorship of the existing PGI-owned assets in the region.
PGI intends to invest up to CAN$300 million in Veren’s future battery and gathering infrastructure, with one-third of this amount already committed.
Veren will be responsible for constructing and operating the batteries, while PGI will handle the construction and operation of high-pressure gathering pipelines.
Furthermore, Veren will form a 15 year take-or-pay agreement with PGI for capacity at the acquired assets.
This agreement will also include an area-of-dedication for PGI to provide gathering and processing services for all volumes produced by Veren in the Gold Creek and Karr regions.
The deal strengthens PGI’s partnership with Veren and consolidates legacy agreements into a simplified structure.
It extends the terms with 15 year take-or-pay agreements, aligns operations for better efficiency, and integrates with Pembina’s value chain for transportation and processing.
PGI president and CEO Chris Rousch said: “We are thrilled to enhance and further align our strategic partnership with Veren, a top-tier growth focused Montney and Duvernay producer.
“This transaction demonstrates how our collaborative approach to infrastructure solutions creates a compelling value proposition for our customers.”
The closing of the deal is anticipated to occur in the fourth quarter of 2024, subject to the satisfaction or waiver of customary
closing conditions, including all required regulatory approvals.
In July 2024, PGI agreed to acquire a 50% interest in Whitecap Resources’ 15-07 Kaybob Complex in Alberta, Canada.
Read the latest issue of World Pipelines magazine for pipeline news, project stories, industry insight and technical articles.
World Pipelines’ Americas 2024 issue
The special Americas 2024 issue of World Pipelines reports on oil and gas pipeline activity in North America, Latin America, the Caribbean and South America. Articles cover pipeline safety and standards in the US, pipeline risk in the Americas, pipeline logistics in the Caribbean, natural gas and hydrogen learnings in the US, and technical case studies from across the region.
Read the article online at: https://www.worldpipelines.com/business-news/11092024/pembina-gas-infrastructure-to-acquire-verens-midstream-assets/
You might also like
PetroChina ends its role as committed shipper on Trans Mountain pipeline
PetroChina Canada will no longer be a committed shipper on the Trans Mountain oil pipeline after assigning its contracts to another party, reports Reuters.