As part of the deal, Whitecap entered into a long-term, take-or-pay agreement for PGI’s capacity at the Kaybob Complex to support Whitecap’s liquids-rich acreage. (Source: Shutterstock)
Pembina Gas Infrastructure (PGI) closed a CA$420 million (US$291.6 million) deal with Whitecap Resources (WCP) for 50% ownership of an Alberta, Canada, gas processing facility, WCP and Pembina Pipeline Corp. (PBA) said Jan. 2.
PGI is 60% owned by Pembina Pipeline with the remaining 40% stake held by its partner, private equity firm KKR.
In the deal, Canada-based PGI will own a 50% working interest in the 15-07 Kaybob Complex as of Dec. 31, 2024. The Kaybob Complex is a natural gas processing plant with a capacity of 165 MMcf/d and a condensate stabilization capacity of 15,000 bbl/d.
As part of the deal, Whitecap entered into a long-term, take-or-pay agreement for PGI’s capacity at the Kaybob Complex to support Whitecap’s liquids-rich acreage.
The overall deal also included PGI agreeing to support Whitecap’s future infrastructure developments in the Lator area, including new battery and gathering pipelines. PGI will own the new CA$400 million (US$277.7 million) infrastructure with an expected capacity of 150 mmcf/d, Pembina said.
All gas produced in the new area will flow to a PGI-owned Musreau facility. The new network is expected to enter service by early 2027.
Whitecap used the sale’s proceeds to reduce its net debt to below $1 billion, the company said.
The companies first announced the deal in early July. At the time, Topaz Energy also signed a separate CA$100 million (US$69 million) deal with Whitecap for a 50% working interest in the Musreau 05-09 facility. Neither Topaz nor Pembina have announced a closing of the deal.
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