Apollo acquires 40% stake in Pembina Gas Infrastructure in deal with KKR and Pembina Pipeline
Apollo acquires 40% stake in Pembina Gas Infrastructure, buying KKR’s interest and partnering with Pembina Pipeline to fund growth and expand gas capacity.
Pembina Pipeline said Thursday that Apollo Global Management has agreed to acquire a 40% stake in Pembina Gas Infrastructure, with the New York asset manager purchasing the interest from KKR for an undisclosed sum. Apollo acquires 40% stake in Pembina Gas Infrastructure, joining Pembina as a long-term partner while Pembina Pipeline retains operational control of the gas-processing platform. The companies said the transaction, announced in a joint release, is expected to close by the end of June, subject to customary conditions.
Deal structure and timing
The transaction transfers a 40 per cent ownership position from KKR & Co. to Apollo Global Management, while Pembina Pipeline remains the controlling shareholder and operator of the business. Company statements did not disclose the purchase price and indicated the closing is targeted by the end of June. Officials said the deal will proceed under standard commercial and regulatory steps customary for transactions of this size.
Assets and capacity
Pembina Gas Infrastructure operates a network of 23 gas-processing plants with a combined capacity of roughly five billion cubic feet per day. The platform was built through a joint venture formed in 2022 between Pembina and private equity partners, and has since expanded its footprint across Western Canada’s gas-producing regions. Executives described the portfolio as focused on providing processing and associated midstream services to industrial customers and energy producers.
Strategic rationale from Apollo
Apollo’s partner Scott Browning described the assets as strategically positioned to support industrial markets and broader energy security in North America. In materials accompanying the announcement, Apollo said it sees opportunities to deploy capital into development projects and to grow the platform’s commercial reach. The firm framed the purchase as a long-term investment in midstream infrastructure with potential for operational and development-led expansion.
Pembina’s operational role
Pembina Pipeline’s chief executive, Scott Burrows, welcomed Apollo as a new shareholder while reaffirming Pembina’s commitment to lead operations and strategy for the gas-processing business. Pembina said in the release that it will continue to manage day-to-day operations and pursue platform growth alongside its new partner. Company representatives signaled continuity in operational leadership, stressing that the transaction does not change Pembina’s controlling governance role.
Market context and implications
The sale marks another example of large global asset managers increasing exposure to North American energy infrastructure through stakes in midstream assets. Industry observers note that investors have been attracted to processing and transportation infrastructure for its fee-based revenue and role in energy supply chains. The parties framed the move as both a capital partnership and an opportunity to support industrial customers dependent on steady gas-processing availability.
Pembina’s combined platform expansion since 2022 has elevated its processing capacity and reach, positioning the company to serve producers and downstream industrial demand. By bringing Apollo into the ownership group, Pembina gains access to additional capital and institutional backing, which executives said could accelerate development projects and capacity enhancements already under consideration.
Apollo and Pembina pointed to energy-security themes in explaining the investment, saying the facilities play a role in the reliability of gas supply to Canadian and U.S. industrial markets. The announcement did not detail specific projects to be financed by the fresh capital, nor did it provide financial metrics tied to the transaction’s projected returns.
Pembina and Apollo did not outline any planned workforce or operational changes associated with the ownership transfer, and the companies indicated that customers should expect business as usual at the plants. The joint release framed the deal as a continuity transaction designed to support future growth without disrupting existing operations.
The deal follows KKR’s earlier participation in the joint venture, which supported the platform’s initial growth phase after forming the partnership with Pembina in 2022. The transfer to Apollo represents a reallocation of private capital among large institutional players while keeping Pembina at the operational helm.
While the announcement sets a target closing window, completion will depend on final documentation and any regulatory reviews required by authorities. Company statements emphasized customary closing conditions but did not specify which regulators, if any, would review the transaction.
The partnership is the latest development in a series of midstream transactions that highlight investor appetite for energy-infrastructure assets that offer stable cash flows and opportunities for incremental capital deployment. Market watchers will be watching for follow-up details on planned development projects and any changes to the platform’s capacity or service offerings.
Pembina, Apollo and KKR provided the information through a joint news release, and the companies said they expect the transaction to be finalized by the end of June, barring unforeseen conditions.
