KKR & Co. and Pembina Pipeline Corp. agreed to combine their natural gas processing assets in Western Canada to create a new joint venture.

The entity will also acquire certain interests held by Energy Transfer LP. The total value of the transactions totals $11.4 billion (US$9 billion), the companies said Tuesday in a statement. That sum excludes the value of any assets under construction.

The combined company, dubbed “Newco” for now, will have a foothold in northeast British Columbia, a basin with significant gas reserves. Although there’s no operational export terminal for liquefied natural gas in the province, several projects have been proposed to supply a growing global market for the fuel. 

The public-private tie-up brings efficiencies and cost reductions, the companies said. The deal is expected to close late in the second quarter or during the third quarter.

“We share Pembina’s views on the positive and essential role that Canadian natural gas plays within the global energy transition and we are pleased to combine these assets to create a stronger platform to meet that opportunity,” said Brandon Freiman, head of North American infrastructure at KKR.

Pembina last week appointed Scott Burrows as chief executive officer.