Keyera Buys Plains’ Canadian LNG Business for $3.77 Billion

Keyera Corp, one of the largest midstream oil and gas operators in Canada, on Wednesday said that it has entered into an agreement to purchase the Canadian natural gas liquids (NGL) business of Plains All American Pipeline and Plains GP for $3.77 billion in all cash deal.

Keyera operates in the energy sector, primarily focusing on the processing, transportation, storage, and marketing of natural gas and natural gas liquids and is a significant player in the Canadian energy market, providing essential services and infrastructure for the energy industry.

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. The transaction is anticipated to close in the first half of 2026, subject to customary closing conditions including regulatory approvals.

Furthermore, the combined platform provides access to high-demand markets via liquefied petroleum gas (LPG) 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.

Keyera president and CEO Dean Setoguchi said that this was a highly strategic acquisition that strengthened his company’s core business and accelerates its growth trajectory. The assets Keyera was acquiring are high-quality, synergistic, and strongly aligned with their 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,” Setoguchi added.

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.

Optimising Capital Structure

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 $360 million.

Plains chairman and CEO Willie Chiang said that the transaction 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,” Chiang added.

It may be recalled that several US energy companies have been exiting Canada to focus on their domestic operations. There are also concerns over the export of oil and other energy commodities to the US, as the Trump administration has imposed a 10% tariff on them.