07:55 AM EDT, 09/09/2024 (MT Newswires) -- Pembina Pipeline ( PBA ) said on Monday that its subsidiary Pembina Gas Infrastructure agreed to acquire Veren's ( VRN ) Gold Creek and Karr area oil batteries for $400 million.

Pembina Pipeline's ( PBA ) share price slipped 0.5% at last look to US$40.26 on the NYSE following the news.

Pembina Pipeline's ( PBA ) share is $240 million. Pembina Gas Infrastructure, or PGI, is a joint venture between Pembina and KKR.

According to Pembina Pipeline ( PBA ), the assets include natural gas handling capacity of 320 million cubic feet per day and liquids handling capacity of 53,000 barrels per day.

Natural gas from the batteries is processed at PGI's Patterson Creek Gas Plant and both the batteries and the gas plant are connected to Pembina's Peace Pipeline system.

PGI will also fund up to $300 million, of which approximately one-third has already been committed, for Veren's ( VRN ) future battery and gathering infrastructure in the area.

"We are thrilled to enhance and further align our strategic partnership with Veren ( VRN ), a top-tier growth focused Montney and Duvernay producer," said Chris Rousch, PGI's president and CEO. "This transaction demonstrates how our collaborative approach to infrastructure solutions creates a compelling value proposition for our customers."

The transaction is expected to close in the fourth quarter.