CALGARY, A.B. — Pembina Pipeline Corp. announced this morning that it would buy Veresen Inc. in a deal valued at $9.7 billion.
After the merger with Veresen, Pembina will own about 5.8 billion cubic feet per day of gas processing infrastructure across the Western Canadian Sedementary Basin by 2018.
Veresen has been pursuing development of midstream infrastructure in the B.C. Montney region in recent years. The company is currently building 1.5 billion cubic feet per day of gas processing and related compression, gathering and liquids handling network under a long-term, fee-based agreement. Pembina says that the infrastructure is complementary to its roughly 1.7 billion cubic feet per day of field gas processing capacity in the Deep Basin, Duvernay and Alberta Montney. Pembina previously announced a pipeline expansion and lateral development in the B.C. Montney, which would feed into its $2.4 billion Phase III Expansion that is expected to be up and running in July.
The Transaction was unanimously approved by the Boards of Directors of both companies and is expected to close late in the third quarter or early in the fourth quarter of 2017.