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Released September 10, 2024 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--For a net purchase price of about US$300 million, midstream company Pembina Pipeline Corporation (NYSE:PBA) (Calgary, Alberta) said it was adding thousands of barrels of oil equivalent to its storage capacity with an acquisition from Veren Incorporated (NYSE:VRN) (Calgary).
Pembina Gas Infrastructure, a joint venture between the parent company and investment firm KKR & Company Incorporated (NYSE:KKR) (New York, New York), entered into an agreement to acquire the Gold Creek and Karr storage facilities from Veren.
The storage outlets in Alberta can handle 320 million cubic feet per day of natural gas and a liquids capacity of 53,000 barrels per day (BBL/d). Both facilities already are connected to Pembina's Peace Pipeline, which was overhauled and expanded in 2019.
During the second quarter, Veren brought its first fully operated pad in the Karr area online, getting a peak flow rate of about 1,300 barrels of oil equivalent per day (BOE/d). The company planned 11 wells in the Gold Creek area. Both are situated in Alberta's Montney Shale.
Veren also realized an average production of 192,648 BOE/d during the quarter. Veren, which formally changed its name from Crescent Energy earlier this year, will retain operatorship of both storage facilities in Alberta.
Apart from the cash infusion, which Veren said would take a significant chunk out of its debt, the company gets access to products from Pembina's natural gas plant in Patterson Creek, Alberta, which is licensed for 395 million cubic feet per day in processing capacity.
Pembina, for its part, reported an 11.5% increase in pipeline volumes year-over-year during the second quarter. It's expecting even more because of new export facilities on the nation's West Coast.
The company reported net revenue of US$873 million, compared with US$659 million during the same period last year. From its pipelines alone, the company said it earned US$353 million, a 39% increase over levels from second-quarter 2023.
Elsewhere, Pembina is moving forward after reaching a final investment decision on the proposed Cedar LNG project, a floating liquefied natural gas (FLNG) facility in Kitimat in British Columbia.
The project, which has a nameplate capacity of 3.3 million tons of LNG per year, is expected to be in service in late 2028. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can learn more from a detailed project report.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Pembina Gas Infrastructure, a joint venture between the parent company and investment firm KKR & Company Incorporated (NYSE:KKR) (New York, New York), entered into an agreement to acquire the Gold Creek and Karr storage facilities from Veren.
The storage outlets in Alberta can handle 320 million cubic feet per day of natural gas and a liquids capacity of 53,000 barrels per day (BBL/d). Both facilities already are connected to Pembina's Peace Pipeline, which was overhauled and expanded in 2019.
During the second quarter, Veren brought its first fully operated pad in the Karr area online, getting a peak flow rate of about 1,300 barrels of oil equivalent per day (BOE/d). The company planned 11 wells in the Gold Creek area. Both are situated in Alberta's Montney Shale.
Veren also realized an average production of 192,648 BOE/d during the quarter. Veren, which formally changed its name from Crescent Energy earlier this year, will retain operatorship of both storage facilities in Alberta.
Apart from the cash infusion, which Veren said would take a significant chunk out of its debt, the company gets access to products from Pembina's natural gas plant in Patterson Creek, Alberta, which is licensed for 395 million cubic feet per day in processing capacity.
Pembina, for its part, reported an 11.5% increase in pipeline volumes year-over-year during the second quarter. It's expecting even more because of new export facilities on the nation's West Coast.
The company reported net revenue of US$873 million, compared with US$659 million during the same period last year. From its pipelines alone, the company said it earned US$353 million, a 39% increase over levels from second-quarter 2023.
Elsewhere, Pembina is moving forward after reaching a final investment decision on the proposed Cedar LNG project, a floating liquefied natural gas (FLNG) facility in Kitimat in British Columbia.
The project, which has a nameplate capacity of 3.3 million tons of LNG per year, is expected to be in service in late 2028. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can learn more from a detailed project report.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
