The new, combined platform will allow Keyera's customers more flexibility and boost their access to export markets.Supplied
Calgary-based energy infrastructure company Keyera Corp. KEY-T announced Tuesday it will acquire all of Plains’ Canadian natural gas liquids business, along with some U.S. assets, for $5.15-billion.
The acquisition will significantly expand Keyera’s liquids infrastructure business by creating an integrated natural gas liquids (NGL) corridor that stretches from western to eastern Canada. The assets at the heart of the deal include extraction, storage, pipelines, and rail and truck terminals in Alberta, Saskatchewan, Manitoba and Ontario.
Dean Setoguchi, chief executive of Keyera, told investors on a call Tuesday afternoon that the deal is a defining moment for the company.
“It’s a rare opportunity to add scale, unlock value and extend our platform for decades to come,” he said, adding that the assets the company is buying are “highly complementary” to Keyera’s existing portfolio.
The deal will also bring key NGL infrastructure under Canadian ownership, he said, “enhancing domestic energy capabilities and reinforcing Canada’s economic resilience by keeping value and decision-making closer to home.”
Midstream natural gas is where it’s at for Keyera Corp. – and maybe our planet
The new, combined platform will allow its customers more flexibility and boost their access to export markets via the West Coast, as well as markets across the Prairies, eastern Canada and the U.S., Mr. Setoguchi said, and is “ultimately about delivering value to our customers.”
He said it would also help the company’s long-term strategy of expanding fee-for-service along its NGL platform.
Keyera has three main lines of business: Gathering and processing natural gas from producers through a network of pipelines and plants; liquids infrastructure, which involves producing and storing natural gas liquids; and marketing those liquids from its infrastructure system.
Mr. Setoguchi said the true strength of the deal announced Tuesday lies in how it will optimize each link in Keyera’s NGL system across products such as ethane, propane, butane, isooctane and condensate.
Last week, Keyera reached an agreement to double the volume of liquefied petroleum gas it plans to export through a West Coast export facility being built by AltaGas Ltd.
The deal was unanimously approved by Keyera’s board of directors and is expected to close in the first quarter of 2026, the company said.
Keyera’s revenue has almost tripled since dipping to $2.5-billion in 2015 and 2016.