Published: September 9, 2024 |

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Pembina Pipeline’s Pembina Gas Infrastructure (PGI) has entered into agreements with Veren Inc. and certain affiliates that include the acquisition of Veren’s Gold Creek and Karr area oil batteries and support for future infrastructure development. PGI is a Western Canadian focused gas processing entity jointly owned by Pembina and KKR.

“We are thrilled to enhance and further align our strategic partnership with Veren, a top-tier growth focused Montney and Duvernay producer,” said Chris Rousch, PGI’s president and chief executive officer.

“This transaction demonstrates how our collaborative approach to infrastructure solutions creates a compelling value proposition for our customers,” added Rousch.

TRANSACTION DETAILS

• 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 maintenance capital flowing through to Veren. Veren will also assume operatorship of the existing PGI-owned batteries in the area.

• Additionally, PGI will fund up to $300 million, of which approximately one-third has already been committed, for Veren’s future battery and gathering infrastructure in the area. Veren will construct and operate the batteries, and PGI will construct and operate high pressure gathering pipelines.

• Veren will enter into a 15 year take-or-pay agreement for capacity at the acquired batteries, which also includes an area-of-dedication to PGI for gathering and processing services for all volumes Veren produces out of the Gold Creek and Karr areas.

Closing is expected to occur in the fourth quarter of 2024 and is subject to the satisfaction or waiver of customary closing conditions, including all required regulatory approvals.

Pembina Pipeline Corporation is a leading energy transportation and midstream service provider that has served North America’s energy industry for more than 65 years. Pembina owns an integrated network of hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and an export terminals business. Through its integrated value chain, they seek to provide safe and reliable energy solutions that connect producers and consumers across the world, support a more sustainable future and benefit customers, investors, employees and communities.

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