Pembina Boosts Natural Gas Holdings, Buys Veresen

Pembina Pipeline is buying its smaller competitor, Veresen, in a stock-and-cash deal worth about $7.1 billion (C$9.7 billion). The move gives the pipeline operator access to natural gas pipelines and processing infrastructure.

Both Calgary, Canada-based companies hold assets in several oil and gas producing areas in Alberta, B.C. and the Bakken Formation, which overlaps the U.S.-Canada border.

Pembina is primarily a liquids company, while Veresen is primarily a gas company. The deal is expected to close this summer.

Among its holdings, Veresen owns Alliance Pipeline, which runs from the Western Canadian Sedimentary Basin and the Williston Basin to the Chicago market hub, and is currently looking to increase its capacity to 2.1 Bcf/d.

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