Apollo to Acquire 40% Interest in Canada’s Pembina Gas Infrastructure
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Apollo said it has agreed to acquire a 40 percent stake in Pembina Gas Infrastructure (PGI), a premier gas processing entity in Western Canada, from funds managed by KKR.
Pembina Pipeline, which operates and manages PGI’s facilities, will maintain its 60 percent stake in the company and the existing governance structure will remain unchanged upon closing.
Since its formation as a joint venture between Pembina and KKR in 2022, PGI has grown into one of the largest independent gas processing platforms in Western Canada, with a combined processing capacity of approximately five billion cubic feet per day.
PGI currently operates 23 gas processing plants, approximately 3,900 kilometers of gathering pipelines, and approximately 330,000 barrels per day of NGL extraction capacity. With connectivity to major gas transmission networks in the region, the company is strategically positioned to serve its blue-chip customer base throughout the Montney and Duvernay trends, from central Alberta to northeast British Columbia.
“PGI is a premier Canadian platform strategically situated at the inlet of the global industrial renaissance, with assets supporting industrial end markets that underpin the energy security of North American economies,” said Scott Browning, partner at Apollo.
“We see a compelling opportunity to grow the business alongside these tailwinds, with the potential to deploy capital into attractive development projects alongside one of the world’s leading midstream operators,” added Browning.
“Having established PGI as a leading gas processing platform in Western Canada, we remain focused on continuing to grow the business and deliver for our customers,” said Heather Christie-Burns, president and chief executive officer of PGI.
“Apollo’s expertise in infrastructure and long-term orientation make it an ideal partner for this next phase and we thank KKR for their strategic partnership in building PGI into the platform it is today. We remain focused on progressing our growth strategy for the benefit of our customers, our partners and the communities we serve,” added Christie-Burns.
“PGI is a cornerstone of Pembina’s integrated midstream platform and a critical piece of Western Canadian energy infrastructure. We welcome Apollo as a new partner and look forward to building on the strong foundation that KKR helped establish since the platform’s formation. Pembina remains fully committed to the operational leadership and strategic direction of PGI, and we are excited to continue growing the platform alongside a like-minded, long-term investor,” said Scott Burrows, president and chief executive officer of Pembina.
“We have long believed in Canada as a compelling market to invest in and develop critical energy infrastructure. When we formed PGI with Pembina, we saw a clear opportunity to build a leading gas processing platform to serve the region’s growing demand,” said Paul Workman, managing director at KKR.
“The PGI management team’s disciplined execution and Pembina’s stewardship were instrumental in realizing that vision. We are proud of the platform PGI has become and wish the team continued success as the business enters its next phase,” added Workman.
The transaction is expected to close by the end of the second quarter of 2026, subject to satisfaction of customary closing conditions.
Apollo is a high-growth, global alternative asset manager. In their asset management business, they seek to provide clients excess return at every point along the risk-reward spectrum from investment grade credit to private equity. For more than three decades, their investing expertise across its fully integrated platform has served the financial return needs of clients and provided businesses with innovative capital solutions for growth. Through Athene, their retirement services business, they specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions.
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