Competition Bureau takes action to protect competition in pipeline transportation of natural gas liquids in Western Canada

GATINEAUQC, July 28, 2022 /CNW/ – Yesterday, the Competition Bureau filed a consent agreement with the Competition Tribunal to address its concerns regarding certain aspects of the proposed creation of a gas processing joint venture between Pembina Pipeline Corporation and the Global Investment Funds. infrastructure of KKR. In particular, the Commissioner was concerned with the acquisition of a 50% interest in the Key Access Pipeline System (KAPS) project resulting from the related purchase of the remaining part of Energy Transfer Canada ULC (ETC) which is not already owned by KKR’s global infrastructure funds. . The Bureau is taking this action to preserve competition in the pipeline transportation of natural gas liquids (NGLs) by alberta.

Following a thorough review, the Bureau concluded that the proposed merger would likely result in a significant prevention of competition in the provision of pipeline transportation for NGLs between the northwest alberta and Fort Saskatchewan, Alberta. Market participants have indicated that the proposed merger would weaken a likely competitive alternative to Pembina’s Peace Pipeline system.

To address the Bureau’s concerns, the consent agreement requires Pembina and KKR’s Global Infrastructure Funds to sell ETC’s interest in the KAPS project to a third party. Upstream energy companies have been able to take advantage of competition between the Peace Pipeline network and KAPS, including negotiating more competitive tolls and additional flexibility for future transportation of NGLs on pipelines. It is expected that this type of competition will continue when KAPS is operational.

The Bureau is confident that this agreement will address its competition concerns. The consent is available on the Competition Tribunal’s website.


“Our goal is always to maintain competitive markets. This agreement will help protect competition in the pipeline transportation of natural gas liquids in alberta and maintaining lower prices for businesses and consumers across the board.”

Matthew Boswell,
Commissioner of Competition

Fast facts

  • Pembina is a publicly traded pipeline transportation and midstream service provider for North America energy industry. Pembina owns and operates an integrated network of pipelines that transport various liquid hydrocarbons in Western Canada and the northwestern United States

  • KKR is a global investment firm headquartered in New York, NY Its Global Infrastructure Funds currently hold a 49% stake in ETC.

  • ETC is a midstream oil and gas company that deals in natural gas and NGLs and owns a 50% interest in the KAPS project.

  • Keyera Corp. is a midstream oil and gas company that deals in natural gas and NGLs. It holds a 50% interest in the KAPS project and is the operator of KAPS.

  • The proposed transaction has also been reviewed under the Canada Transportation Act.

  • Mergers of all sizes and in all sectors of the economy are subject to review by the Bureau to ensure that they do not result in a substantial lessening or prevention of competition.

  • Consents generally contain remedies that the Competition Bureau has deemed appropriate to remedy the likely anti-competitive effects of a proposed transaction. A consent has the force and effect of a court order once it is registered with the Competition Tribunal.

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The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.

Competition Bureau


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