Keyera acquires Plains' Canadian Natural Gas Liquids business for $3.77 Billion

Keyera Corp announced on Tuesday that it had agreed to purchase substantially all of Plains Canada's Canadian natural gas liquids businesses for C$5,15 billion ($3,77 billion) cash.

The Canadian-based pipeline operator stated that the purchase expands Keyera’s position by bringing a natural gas liquids (NGL) corridor from Western Canada to Eastern Canada under Canadian ownership and brings key NGL infrastructure.

Keyera, a Canadian energy infrastructure company, and AltaGas, a Canadian-based firm that processes liquefied gaseous petroleum, entered into long-term contracts in February.

The announcement comes as U.S. president Donald Trump imposes tariffs on Canadian products, including a 10% tax on imports of energy, which includes oil, natural gases, electricity, coal and uranium.

Canadian companies aim to reduce their dependence on the U.S. through expansion within Canada or other markets, such as those found in Asia.

Keyera says the assets acquired include NGL fractionation, storage and rail and truck terminals in Alberta, Saskatchewan Manitoba and Ontario.

Plains stated in its statement that the transaction will close in the first half of 2026. It also said it would divest the Canadian NGL business.

The company said that it would reclassify as discontinued operations the NGL assets related to the transaction, effective June 30, this year.

Plains has said that it will retain a substantial portion of its assets in the U.S., as well as all crude oil assets located in Canada.

The sale and restructuring of remaining Canadian crude assets is estimated to cost the company about $360,000,000 in entity-level tax payable in Canada.

After the bell, shares of Plains All American Pipeline rose 1.2%. (1 Canadian dollar = $1) (Reporting and editing by Alan Barona in Bengalur; reporting by Ananya Marym Rajesh, Katha Kalia, and Katha Kalia from Bengalur)

(source: Reuters)