Pembina Completes Kaybob Complex Acquisition, Expands Infrastructure in Karr and Gold Creek Areas
(P&GJ) — Pembina Pipeline Corp. has completed the acquisition of a 50% working interest in Whitecap Resources Inc.'s 15-07 Kaybob Complex located in Alberta, Canada, as announced by Pembina Gas Infrastructure Inc.
The transaction, effective December 31, 2024, includes a long-term take-or-pay agreement between Whitecap and PGI, which guarantees PGI’s capacity in the Kaybob Complex, along with an area-of-dedication for all volumes Whitecap produces from the area.
In addition to the Kaybob Complex acquisition, Pembina has provided updates on infrastructure developments in the Karr and Gold Creek regions, which are part of PGI’s ongoing transaction with Veren Inc.
As part of the deal with Whitecap, PGI and Whitecap have entered into long-term, take-or-pay agreements for PGI’s K3 facility, which is expected to support Whitecap’s liquids-rich developments. PGI now expects the Kaybob Complex capacity to be fully utilized, advancing projects to accommodate volumes at the K3 facility. This development is set to begin in the third quarter of 2025, one year earlier than initially anticipated.
Lator Infrastructure Update
Along with the Kaybob Complex deal, PGI is investing in future infrastructure for Whitecap’s Lator area, which will include a new battery and gathering laterals. PGI plans to fund up to $400 million ($240 million net to Pembina) for the first phase of the Lator Infrastructure, with completion expected in late 2026/early 2027. The project is supported by long-term take-or-pay agreements and is expected to increase long-term plant utilization. Additionally, PGI’s nearby processing facilities could provide timely, cost-effective solutions for Whitecap.
The natural gas liquids from the Kaybob Complex and Lator Infrastructure will flow through Pembina’s extensive downstream infrastructure, including the Peace Pipeline and Redwater Complex. This development enhances Pembina's transportation, fractionation, and marketing services agreements, with specific focus on supporting Dow’s Path2Zero project.
Gold Creek and Karr Development Update
Under PGI’s agreement with Veren, Pembina is funding up to $300 million ($180 million net to Pembina) for battery and gathering infrastructure in the Gold Creek and Karr areas. Since the initial announcement, Veren has requested additional battery infrastructure, bringing the total funding commitment to approximately $200 million ($120 million net to Pembina). This will also be backed by long-term take-or-pay agreements.
The closure of the Kaybob Complex acquisition and the updates on infrastructure developments are not expected to materially impact Pembina’s 2025 guidance or capital investment program, as outlined in its Dec. 12 report.
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