Houston-based Energy Transfer LP has agreed to sell its 51% stake in its Canadian arm for about C$1.6 billion ($1.3 billion) to a joint venture that includes Pembina Pipeline Corp. and global infrastructure funds managed by KKR.

energy transfer assets

Energy Transfer Canada ULC is one of the largest natural gas processors in Alberta. Its assets include six gas processing plants, and a gas gathering and transport network that spans about 848 miles in the Western Canadian Sedimentary Basin.

“The agreement allows Energy Transfer to divest its high-quality Canadian assets at an attractive valuation to further deleverage its balance sheet and redeploy capital within its U.S. footprint,” management said. 

The transaction, slated to close by the third quarter, is expected to result in cash proceeds...