Pembina Pipeline Corporation, KKR complete joint venture to create Pembina Gas Infrastructure Inc.

On August 15, 2022, KKR & Co. Inc. (“KKR”) completed its $11.4 billion joint venture platform with Pembina Pipeline Corporation, including the combination of the Western Canadian natural gas processing assets of both companies and the joint venture’s concurrent acquisition of the remaining 51 percent interest in Energy Transfer Canada from Energy Transfer LP.

Included in the transaction are Pembina’s wholly owned field-based natural gas processing assets, Veresen Midstream which is jointly owned by Pembina and funds managed by KKR, and Energy Transfer Canada (“ETC”) which is jointly owned by Energy Transfer and funds managed by KKR. The transaction brings together three complementary platforms to create a premier western Canadian processing entity with the ability to serve customers throughout the Montney and Duvernay trends from north central Alberta to northeast British Columbia.

Torys LLP acted as counsel to KKR with a team that includes Derek Flaman, Peter Danner, Amy Maginley, Matthew McMahon, Jessie Mann, Paul Grenon and Tanis Makowsky (corporate/M&A), Kevin Fougere (financing), Craig Maurice and Steve Marshall (tax), Omar Wakil and Ian Li (competition), Tom Stevenson (employment), Andrew Bedford (real estate) and Gino Bruni (energy regulatory).

Pembina was advised internally by an in-house team led by Jason Metcalf (Vice President, General Counsel & Corporate Secretary) and Helen Cox (Senior Legal Counsel). Blake, Cassels & Graydon LLP acted as external counsel to Pembina with a team that includes Chris Harris, Chad Schneider, Evan Herbert, Kris Simard, Ashton Menuz and Erik Fleming (Corporate/M&A), Brian Facey, Cassandra Brown and Matthew Prior (Competition), Warren Nishimura and Drew Campbell (Financial Services), Dan Jankovic and Monica Cheng (Tax) and Birch Miller (Employment).