Pembina Pipeline Corp., Calgary, has completed its previously announced deal for the purchase of sour gas processing properties in the Musreau area of Alberta from Paramount Resources Ltd. (OGJ Online, Mar. 22, 2016).
The acquisition, which was funded both through net proceeds from an earlier common-share offering that closed on Mar. 29 as well as existing capacity under the company’s recently increased $2.5 billion credit facility, was finalized on Apr. 20, Pembina said.
While Pembina did not disclose a final value of the deal, the company previously said it would spend more than $600 million (Can.), including $556 million (Can.) cash and other consideration, for the assets.
With the transaction now completed, Pembina has acquired Paramount’s new Kakwa gas processing complex and associated facilities, including: gas-gathering pipelines, a sales-gas pipeline, future disposal wells, and information and rights for a possible gas processing plant designated 6-18.
Connected by pipeline to Pembina’s Cutbank Complex about 15 km away, 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.
Pembina plans to integrate the newly acquired assets, which are underpinned by a 20-year take-or-pay commitment, with its Cutbank Complex, said Jaret Sprott, Pembina’s vice-president of gas services.
Combined, the Cutbank-Kakwa integrated operations will have more than 1 bcfd of processing capacity.
If realized, the 6-18 plant, for which Paramount previously secured site licenses and performed preliminary engineering, would be a shallow-cut plant about 7 km from the Cutbank Complex.