Private equity giant KKR is considering selling its 40% stake in Pembina Gas Infrastructure, a Canadian midstream operator valued at about $7 billion, according to sources familiar with the matter.
Pembina Gas Infrastructure was created in 2022 as a joint venture between KKR and Pembina Pipeline Corp. The company owns natural gas and natural gas liquids transportation, processing, and storage facilities across western Canada, with processing capacity of around 5 billion cubic feet per day. Its assets span key shale basins including Montney and Duvernay.
KKR has hired Scotiabank to gauge buyer interest, though a deal is not guaranteed. Potential suitors include infrastructure funds and alternative asset managers attracted to steady returns from such assets without the need for direct operational control. Opportunities to acquire large minority stakes in Canadian pipeline infrastructure are rare, giving KKR’s holding additional scarcity value.
If KKR exits at the mooted valuation, the firm would secure a significant profit on its investment. At its creation, Pembina Gas Infrastructure was valued at C$11.4 billion ($8.17 billion). Since then, the venture has expanded by bringing projects online and acquiring additional assets.
The potential sale comes amid heightened deal activity in Canada’s energy sector, as investors seek exposure to infrastructure critical to meeting rising demand.
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