KKR & Co. and Pembina Pipeline Corp. agreed to combine their natural gas processing assets in Western Canada to create a new joint venture.
The entity will also acquire certain interests held by Energy Transfer LP. The total value of the transactions totals $11.4 billion (US$9 billion), the companies said Tuesday in a statement. That sum excludes the value of any assets under construction.
The combined company, dubbed “Newco” for now, will have a foothold in northeast British Columbia, a basin with significant gas reserves. Although there’s no operational export terminal for liquefied natural gas in the province, several projects have been proposed to supply a growing global market for the fuel.
Read more: BNN Bloomberg
