Canadian transportation company and midstream service provider Pembina has reached an agreement with its rival Veresen to take over Veresen for C$9.7bn (US$7.1bn).
The combined company will benefit from a strong position in the Western Canadian Sedimentary Basin (WCSB), with Pembina's assets primarily located in the prolific Deep Basin, Duvernay and Alberta Montney being well complemented by Veresen's position in the Montney area in British Columbia. The new company will own approximately 5.8 bcf/d (164 mcm/d or 60 bcm/year) of gas processing infrastructure across the WCSB by 2018. It will also have exposure to hydrocarbon reserves in key producing basins in the US Rockies by way of the Ruby Pipeline, which provides for 1.5 bcf/d (42 mcm/d or 15.5 bcm/year) of transportation capacity. Pembina's existing assets are primarily focused on NGL, condensate, crude oil and heavy oil, while Veresen's assets provide size and scale in gas midstream infrastructure. The new company will continue Veresen's proposed 7.8 Mt/year Jordan Cove LNG project in Coos Bay, Oregon (United States), and the associated Pacific Connector gas pipeline.
The transaction is expected to close late in the third quarter or early in the fourth quarter of 2017.