Stonepeak has entered into an agreement to acquire a 50% interest in the Canadian natural gas liquids (NGL) pipeline system Key Access Pipeline System (KAPS).

KAPS connects Northwest Alberta to energy hubs in Edmonton and Fort Saskatchewan in Canada. The pipeline will consist of a 16-inch pipeline for condensate and a 12-inch pipeline for NGL mix. KAPS supports the goals of decarbonization and global energy security by supporting the ongoing global displacement of coal by natural gas. The project includes strengthening the economic viability of Western Canada's LNG plants and provides a competitive transportation alternative that allows producers to ramp up natural gas production before more LNG is brought online in Western Canada and the US Gulf Coast.

The transaction is expected to close in Q1 of 2023. Stonepeak's financial advisors are Goldman Sachs & Co. LLC, MUFG Bank Ltd. and Mizuho Securities USA LLC, with Sidley Austin LLP and Stikeman Elliott LLP serving as legal counsel.