Pembina to sell near $500 million stake in KKR-backed 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).
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 liquefied natural gas (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.
KAPS is a 560-km pipeline system that transports natural gas liquids between Western Canada's Montney and Duvernay fields to Keyera's processing facilities in Fort Saskatchewan.
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)
(Reporting by Ruhi Soni in Bengaluru; Editing by Krishna Chandra Eluri)
