Pembina Pipeline has completed the acquisition of a 50% working interest in Whitecap Resources’ 15-07 Kaybob Complex.
The transaction was executed through Pembina Gas Infrastructure (PGI), a joint venture between Pembina Pipeline and investment company KKR.
The strategic move is expected to enhance Pembina's service offering and support long-term plant utilisation.
The transaction includes a long-term take-or-pay agreement with Whitecap, ensuring that PGI's capacity in the Kaybob Complex is utilised.
Whitecap has also committed to an area of dedication for all its production volumes in the area. This dedication is poised to drive volume initiation at PGI's K3 facility by the third quarter of 2025, with full capacity utilisation anticipated.
Along, with the Kaybob Complex stake acquisition, PGI has agreed to support future infrastructure development for Whitecap's Lator area. The plan includes a new battery and gathering laterals, which PGI will own and operate under long-term take-or-pay agreements.
PGI is set to fund up to $400m ($240m net to Pembina) for the first phase of the Lator Infrastructure, with gas volumes expected to flow to PGI's Musreau facility by late 2026 or early 2027.
The Lator Infrastructure and Kaybob Complex developments will channel all natural gas liquids through Pembina's downstream infrastructure.
The agreement with Whitecap also encompasses deep-cut processing and ethane-plus natural gas liquids (NGL) transportation and fractionation.
This supports Pembina's ethane supply commitments related to Dow’s Path2Zero project, marking a significant step towards future growth and sustainability.
Pembina also announced an update on the Gold Creek and Karr development areas. PGI has an arrangement with Veren which includes a capital commitment of up to $300m ($180m net to Pembina) for infrastructure in the Gold Creek and Karr areas.
$100m ($60m net to Pembina) was initially committed, with Veren's subsequent request for additional battery infrastructure raising the total commitment to $200m ($120m net to Pembina), backed by long-term take-or-pay agreements.
