CALGARY — Keyera Corp. has agreed to buy the Canadian natural gas liquids business of U.S. firm Plains for $5.15 billion in cash, a deal the Calgary-based infrastructure player says will help boost this country's energy security and economic resilience.
The assets under the deal include 193,000 barrels per day of "fractionation capacity," where gas and liquids are separated, as well as 23 million barrels of storage capacity and more than 2,400 kilometres of pipeline infrastructure.
The deal also covers gas processing operations and loading and logistics infrastructure, including truck and rail terminals in Canada and the U.S.
"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," said Keyera CEO Dean Setoguchi.
The deal is expected to close in the first quarter of 2026, subject to customary closing conditions.
Keyera's business is focused on gathering, processing, transporting and marketing natural gas and natural gas liquids, like propane and butane. Natural gas liquids, also known as condensate, can also be used to dilute thick oilsands bitumen so it can be transported via pipeline.
The Plains deal, which includes infrastructure in Alberta, Saskatchewan, Manitoba and Ontario, helps Keyera create a fully connected corridor for natural gas liquids stretching from west to east.
"By bringing these assets under Canadian ownership, the transaction reinforces Canada's economic resilience by strengthening domestic infrastructure and helping to unlock the full potential of Canada's energy future," Keyera said.
The federal Liberal government has introduced legislation that would speed along the regulatory process for infrastructure projects deemed in the national interest, as U.S. President Donald Trump upends a once reliable cross-border trading relationship with on-again, off-again tariffs.
Canadian energy industry leaders have said the U.S. will always be a key customer for their oil and gas, but it's important to diversify to other markets and build the transportation infrastructure needed to make that happen.
Last week, Keyera announced an agreement to double the volume of petroleum liquids it plans to export through a West Coast export facility being built by AltaGas Ltd.
AltaGas said in February that Keyera had contracted 12,500 barrels per day of capacity to ship the gas to Asia via the Ridley Island Energy Export Facility near Prince Rupert, B.C.
That is to rise to 25,000 barrels per day under 15-year tolling agreements.
The facility is to be used to export propane and butane in its first phase, with the possibility of expanding into ethane and other valuable liquids in the future.
This report by The Canadian Press was first published June 18, 2025.
Companies in this story: (TSX: KEY)
Lauren Krugel, The Canadian Press
