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 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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