Canada’s Pembina to Sell Near $500 Million Stake in 348-Mile Gas Pipeline System

(Reuters) — Canadian pipeline operator Pembina Pipeline Corp.'s joint venture with KKR & Co. has agreed to sell its 50% stake in the Key Access Pipeline System (KAPS) to private equity firm Stonepeak Partners for C$662.5 million ($484.89 million).

KAPS is a 560-km (348-mile) pipeline system that transports natural gas liquids between Western Canada's Montney and Duvernay fields to Keyera's processing facilities in Fort Saskatchewan.

The deal provides Stonepeak access to a pipeline system that moves natural gas liquids to processing facilities for export to Asia, a market with a growing appetite for North American LNG as it moves away from coal and as reduced Russian exports leave a void in global supply.

Formed in March through deals worth C$11.4 billion, the joint venture PGI is owned 60% by Pembina while KKR's global infrastructure funds hold the rest.

Keyera Corp. will continue holding the remaining 50% stake in KAPS and will operate the asset, Stonepeak said.

Both the companies said the sale is expected to close in the first quarter of 2023.

($1 = 1.3663 Canadian dollars)

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