Keyera Corp., a Canadian specialist in energy infrastructure, has signed a definitive agreement to acquire most of the Canadian natural gas liquids (NGL) activities from Plains All American Pipeline LP, along with select U.S. assets. This transaction, valued at 5.15 billion USD, marks a significant milestone in the development of North American energy infrastructure.
A nationwide expanded platform
The acquisition covers strategically located assets in Alberta, Saskatchewan, Manitoba, and Ontario. These infrastructures include extraction, fractionation, storage facilities as well as road and rail terminals. In total, the acquired portfolio represents C3+ fractionation capacity of 193,000 barrels per day, storage capacity reaching 23 million barrels, and over 2,400 kilometres of pipelines with an aggregate capacity exceeding 575,000 barrels daily.
The deal also includes the integration of major installations such as the Empress complex, equipped with a straddle gas processing capacity of around 5.7 billion cubic feet per day (Bcf/d).
Operational streamlining and financial synergies
According to Keyera, the transaction should generate approximately 100 million USD in near-term annual synergies through operational optimisation and corporate cost savings. Pro forma, the company anticipates about a 50% increase in its adjusted EBITDA from fee-based activities during the first year following the acquisition’s completion.
Keyera states the transaction is financially structured to maintain its investment-grade credit ratings. Financing includes an acquisition credit facility fully guaranteed by the Royal Bank of Canada (RBC) and a syndicate of lenders, as well as a 1.8 billion USD public equity offering.
Impact on customers and supply chain
The resulting expanded platform is expected to enable Keyera to offer greater efficiency and reliability to its customers through expanded market access across North America. Products involved include ethane, propane, butane, condensate, and iso-octane. Furthermore, 70% of the pro forma margins are expected to be derived from long-term agreements, ensuring increased financial stability.
Dean Setoguchi, President and CEO of Keyera, notes: “The acquired assets are high-quality and strongly aligned with our existing operations. This transaction enhances our ability to meet customer expectations while strengthening the financial performance of the company.”
Regulatory timeline and outlook
The agreement, unanimously approved by Keyera’s Board of Directors, remains subject to approval by the relevant Canadian regulatory authorities, notably clearance under the Competition Act. The transaction is scheduled to close in the first quarter of 2026.
The acquisition occurs within a global context in which North American energy infrastructure continues to attract strong interest from institutional investors, confirming the strategic and economic importance of the assets involved.
