Alternative investment company Stonepeak has wrapped up the acquisition of a 50% stake in Canada’s Key Access Pipeline System (KAPS) from a subsidiary of Pembina Gas Infrastructure (PGI) for $484.8m (C$662.5m).

The deal between Stonepeak and PGI was announced in December 2022.

The KAPS is a natural gas liquids dual pipeline system that connects north-west Alberta to energy hubs in Edmonton and Fort Saskatchewan.

PGI is 60% owned by Canadian pipeline operator Pembina Pipeline while KKR’s global infrastructure funds own the remaining 40% stake.

Canada midstream company Keyera will continue to serve as the operator of KAPS with 50%.

Stonepeak senior managing director Anthony Borreca said: “We look forward to working closely with Keyera and the KAPS team as a trusted partner and responsible owner of this system that we believe will have an important role to play as the production of natural gas in western Canada continues to grow.

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“In our view, natural gas will remain a key component of the global energy mix for the foreseeable future with critical associated infrastructure that requires thoughtful stewardship to ensure assets are operated in a sustainable manner. This is part and parcel of our approach to investing in the energy sector at Stonepeak.”

The 560km pipeline system links Montney and Duvernay production in western Canada to the fractionation and logistics assets of Keyera in Fort Saskatchewan.

Stonepeak said that the system can be expanded to include additional pump stations if the basin needs additional capacity.

The alternative investment company expects the KAPS to provide a competitive transportation alternative while strengthening the western Canadian LNG facilities’ economic viability.