Apollo announced that it will acquire a 40% equity stake in Pembina Gas Infrastructure Inc. (PGI) from KKR’s global infrastructure funds. The transaction values PGI at a price that has not been disclosed publicly, but the deal reflects the company’s $5 billion processing capacity and extensive pipeline network across Western Canada.
PGI operates 23 gas‑processing plants, about 3,900 km of gathering pipelines, and roughly 330,000 barrels per day of natural‑gas‑liquids extraction capacity. The platform’s combined processing capacity is approximately five billion cubic feet per day, serving customers throughout the Montney and Duvernay trends from central Alberta to northeast British Columbia. Pembina Pipeline Corporation retains its 60% ownership and will continue to operate and manage PGI’s facilities, ensuring operational continuity.
Apollo’s investment aligns with its broader strategy to expand its infrastructure portfolio and capitalize on the growing demand for natural gas as part of the “Global Industrial Renaissance” and the energy transition. Apollo’s partner Scott Browning said, “PGI is a premier Canadian platform strategically situated at the inlet of the Global Industrial Renaissance, with assets supporting industrial end markets that underpin the energy security of North American economies. We see a compelling opportunity to grow the business alongside these tailwinds, with the potential to deploy capital into attractive development projects alongside one of the world’s leading midstream operators.”
KKR’s decision to sell its stake follows a period of value creation since the platform’s formation in 2022. Earlier reports indicated KKR was exploring a sale of its 40% stake, valuing it at around $7 billion. KKR’s managing director Paul Workman noted, “We have long believed in Canada as a compelling market to invest in and develop critical energy infrastructure. When we formed PGI with Pembina, we saw a clear opportunity to build a leading gas processing platform to serve the region’s growing demand.”
PGI’s president Heather Christie‑Burns said, “Having established PGI as a leading gas processing platform in Western Canada, we remain focused on continuing to grow the business and deliver for our customers.” Pembina’s president Scott Burrows added, “PGI is a cornerstone of Pembina’s integrated midstream platform and a critical piece of Western Canadian energy infrastructure. We welcome Apollo as a new partner and look forward to building on the strong foundation that KKR helped establish since the platform’s formation. Pembina remains fully committed to the operational leadership and strategic direction of PGI, and we are excited to continue growing the platform alongside a like‑minded, long‑term investor.”
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