Keyera has entered into a definitive agreement to purchase the Canadian natural gas liquids (NGL) business of Plains All American Pipeline and Plains GP for C$5.15bn ($3.77bn) in cash.
This acquisition is set to expand Keyera’s presence in the NGL market by creating a NGL corridor from Western to Eastern Canada by placing all assets under Canadian ownership.
Furthermore, the combined platform provides access to high-demand markets via liquefied petroleum gas export facilities on the west coast, while also connecting to significant consumption centres in Eastern Canada and the US.
The assets involved in the transaction encompass NGL fractionation, storage, and rail and truck terminals across Alberta, Saskatchewan, Manitoba and Ontario.
The transaction is anticipated to close in the first half of 2026, subject to customary closing conditions including regulatory approvals.
Keyera president and CEO Dean Setoguchi said: “This is a highly strategic acquisition that strengthens our core business and accelerates our growth trajectory. The assets we are acquiring are high-quality, synergistic, and strongly aligned with our operational footprint and expertise.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“This transaction enhances our ability to serve customers, capture meaningful operational efficiencies, and deliver sustainable long-term value for shareholders, while also helping to reinforce Canada’s position as a global energy leader.”
While Plains will divest its Canadian NGL business, it will retain a substantial portion of its assets in the US, as well as all of its crude oil assets in Canada, as part of the transaction.
The company will utilise the proceeds from the transaction to undertake disciplined bolt-on mergers and acquisitions to enhance and broaden the crude oil-focused portfolio and optimise its capital structure.
The restructuring and sale of the remaining Canadian crude assets are projected to result in entity-level tax payable in Canada of approximately $360m.
Plains chairman and CEO Willie Chiang said: “Today’s announcement is a win-win transaction for both Plains and Keyera. Plains is exiting the Canadian NGL business at an attractive valuation while Keyera is receiving highly complementary and critical infrastructure in a strategic market.
“Successful completion of this transformative transaction advances our efficient growth strategy and establishes Plains as the premier pure play crude oil midstream entity with highly strategic assets linking North American supply to key demand centres.”
