Keyera has agreed to acquire most of Plains All American Pipeline’s Canadian natural gas liquids (NGL) business and selected US assets for C$5.15bn ($3.77bn) in cash, pending customary adjustments.
This acquisition will significantly expand Keyera’s presence as a major energy infrastructure firm in Canada.
According to Keyera, the transaction will bring substantial strategic advantages, including a fully connected NGL corridor from western to eastern Canada, strengthening domestic infrastructure and supporting Canada’s economic resilience.
The acquisition includes NGL extraction, fractionation, storage, and rail and truck terminals situated in Alberta, Saskatchewan, Manitoba, and Ontario. These assets enable access to high-demand markets through the West Coast’s liquefied petroleum gas export channels and key hubs in eastern Canada and the US.
The assets to be acquired feature an extensive midstream platform across western and eastern Canada, providing integrated NGL services.
Key features include C3+ fractionation capacity of approximately 193,000 barrels per day and 23 million barrels of storage capacity. Additionally, there is over 2,414 km of pipeline infrastructure with a throughput capacity exceeding 575,000 barrels per day, along with straddle gas processing capacity of around 5.7 billion cubic feet per day at the Empress facility.
The logistics infrastructure also includes truck and rail terminals in North America for enhanced connectivity to end-use markets.
Plains chairman and CEO Willie Chiang said: 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 centers.
“Importantly, the transaction enhances our free cash flow profile and reduces both commodity exposure and working capital requirements into the future.”
Keyera’s acquisition aligns with its strategy to grow its fee-for-service NGL platform. The deal enhances Keyera’s reach across the entire value chain of major NGL products like ethane, propane, butane, condensate, and iso-octane.
The combined platform offers expanded geographic reach into eastern North America and strengthens market access for customers. It also positions Keyera for future optimisation and growth opportunities.
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. 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.”
Synergies are expected to deliver approximately C$100m ($73.2m) in annual corporate cost savings and operational improvements within the first year post-acquisition. The transaction maintains a strong contract foundation with about 70% of pro forma realised margin supported by long-term agreements ensuring dividend sustainability.
With committed financing from the Royal Bank of Canada and a syndicate of lenders, the transaction is fully funded. A separate C$1.8bn ($1.3bn) equity offering will address additional equity issuance needs.
Keyera plans to fund the remaining purchase price via debt securities and bank facilities.
The company’s board of directors has unanimously approved the acquisition, which is set to close in Q1 2026 following regulatory clearances under Canada’s Competition Act.
