Stonepeak Partners LP, an alternative investment firm focused on infrastructure and real assets, has acquired a 50 percent interest in Kaps, a Canadian natural gas liquids pipeline system connecting Northwest Alberta to energy facilities in Edmonton and Fort Saskatchewan.
Kaps is an approximately 560-kilometer dual pipeline system linking Montney and Duvernay production in western Canada to Keyera Corp.‘s fractionation and logistics assets in Fort Saskatchewan. Keyera Corp. will continue to own the remaining 50 percent of Kaps and operate the asset.
“We believe that North American hydrocarbons, particularly natural gas, will continue to be an important component of the global energy mix for the foreseeable future, especially as efforts to decarbonize East Asia continue – natural gas production growth in western Canada will play a critical role in those efforts,” comments Anthony Borreca, senior managing director at Stonepeak. “In our view, this makes KAPS a strong fit for Stonepeak’s opportunities strategy.”
Goldman Sachs & Co. LLC, MUFG Bank Ltd., and Mizuho Securities USA LLC are serving as financial advisors to Stonepeak. Sidley Austin LLP and Stikeman Elliott LLP are serving as legal counsel.