Pembina Gas Infrastructure Inc. (PGI), a Western Canadian-focused gas processing entity jointly owned by Pembina Pipeline Corp. and KKR, has agreed to acquire Veren’s oil batteries in the Gold Creek and Karr regions, located within Alberta's Boreal forest area, and support future infrastructure development.
The net purchase price related to the acquisition of the batteries is C$400 million ($295 million), and the transaction will initially be funded using PGI’s existing credit facility.
PGI will acquire four batteries in the Gold Creek and Karr areas, which include natural gas-handling capacity of 320 million cubic feet per day and liquids handling capacity of 53,000 barrels per day. Natural gas from the batteries is processed at PGI’s Patterson Creek Gas Plant, and both the batteries and the Patterson Creek Gas Plant are connected to Pembina’s Peace Pipeline system.
Veren will retain operatorship of the acquired assets, with operating costs and maintena