HomeNewsKeyera to buy Plains' Canadian NGL business for $3.77 B

Keyera to buy Plains' Canadian NGL business for $3.77 B

6/18/2025

Keyera Corp has agreed to buy substantially all of U.S.-based Plains' Canadian natural gas liquids business for C$5.15 billion ($3.77 billion) in cash.

The buyout expands Keyera's position with a fully connected natural gas liquids corridor stretching from western to eastern Canada and bringing key NGL infrastructure under Canadian ownership, the Canada-based pipeline operator said.

In February, Keyera and Canada-based energy infrastructure firm AltaGas entered into long-term agreements for processing liquefied petroleum gases.

This comes at a time when U.S. President Donald Trump has imposed tariffs on Canadian goods, with a 10% levy on energy imports, which include oil, natural gas, electricity, coal, uranium, and critical minerals.

As a result, Canadian companies are aiming to reduce dependence on the U.S. by expansion opportunities within the country or in other markets such as those in Asia.

Keyera said the acquired assets include NGL extraction, fractionation, storage, as well as rail and truck terminals located across Canadian provinces Alberta, Saskatchewan, Manitoba and Ontario.

Plains said in its statement the transaction is expected to close in the first quarter of 2026 and that it will divest its Canadian NGL business.

The company added that as of June 30 this year it will reclassify the NGL assets associated with the transaction as discontinued operations.

Plains said it would retain substantially all those assets in the U.S. and also all crude oil assets in Canada.

It currently estimates it will incur about $360 million of entity-level taxes payable in Canada associated with the sale and the restructuring of the remaining Canadian crude assets.

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