Apollo Global Management Inc., a New York City-based asset manager, is set to purchase a significant stake in one of Western Canada's largest gas processors for an undisclosed amount, the firm announced Thursday.
Deal Details
Apollo revealed it had acquired 40 per cent of Pembina Gas Infrastructure Inc., a Calgary-based gas processor, from KKR & Co. Inc., a New York-based private equity firm. Calgary's Pembina Pipeline Corp., which owns a controlling stake in the gas company, will remain the operator.
Strategic Position
Scott Browning, a partner at Apollo, said Pembina Gas Infrastructure is strategically situated, with assets supporting industrial markets "that underpin the energy security of North American economies." He added, "We see a compelling opportunity to grow the business," noting that capital could be deployed for "attractive development projects."
Growth and Partnership
Since Pembina and KKR formed a joint venture in 2022, Pembina Gas Infrastructure has grown its combined gas processing capacity to around five billion cubic feet per day across 23 plants, Apollo stated in a news release. Scott Burrows, Pembina Pipeline's chief executive, welcomed Apollo as a new partner. "Pembina remains fully committed to the operational leadership and strategic direction of (Pembina Gas Infrastructure)," Burrows said. "We are excited to continue growing the platform alongside a like-minded, long-term investor."
The deal is expected to close by the end of June.
