Pembina Pipeline to buy Kakwa gas complex

Pembina Pipeline Corp. has agreed to acquire sour gas processing properties in the Musreau area of Alberta from Paramount Resources Ltd. for $556 million (Can.) cash and other consideration pushing the transaction value to more than $600 million (Can.). Both companies are based in Calgary.

Pembina Pipeline Corp. has agreed to acquire sour gas processing properties in the Musreau area of Alberta from Paramount Resources Ltd. for $556 million (Can.) cash and other consideration pushing the transaction value to more than $600 million (Can.). Both companies are based in Calgary.

Pembina will acquire Paramount’s new Kakwa gas processing complex and associated facilities including gas-gathering pipelines, a sales-gas pipeline, and future disposal wells as well as information and rights for a possible gas processing plant designated 6-18.

The Kakwa complex has raw-gas processing capacity of 250 MMcfd, including a 200-MMcfd deep-cut train, a 50-MMcfd shallow-cut train, and 22,500 b/d of condensate stabilization.

It’s connected by pipeline to Pembina’s Cutbank Complex about 15 km away. Combined, the facilities will have more than 1 bcfd of processing capacity.

The 6-18 facility, for which Paramount has secured site licenses and performed preliminary engineering, would be a shallow-cut plant about 7 km from the Cutbank Complex.

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