Calgary-based Keyera Corp. announced the closing of its $5.3 billion acquisition of substantially all of Plains All American Pipeline's Canadian natural gas liquids (NGL) business on May 12, 2026. This acquisition establishes Canadian ownership of critical energy infrastructure. The company funded the transaction through previously issued subscription receipts, cash on hand, and debt financing. Dean Setoguchi, President and CEO of Keyera, hailed the closing as a "significant milestone" that strengthens and extends Keyera's integrated NGL value chain.
The Competition Bureau has applied to the Competition Tribunal to challenge the deal, alleging potential harm to energy producers and investment. The key concern revolves around competition within Canada's main NGL processing hub in Fort Saskatchewan, Alberta. Keyera has stated that they disagree with the regulator's assertions and intends to respond through the Competition Tribunal process. Keyera argues the acquisition strengthens competition by creating a more efficient, Canadian-based competitor with enhanced connectivity and market access.
The transaction is expected to yield over $100 million in annual run-rate synergies within 12 months. Keyera anticipates that the deal will be mid-teens accretive to distributable cash flow per share once integration is complete and near-term synergies are fully realized. The company expects its net debt to adjusted EBITDA ratio to return to its long-term target range of 2.5x to 3.0x around the end of 2027.
Plains All American Pipeline intends to use the proceeds to repay outstanding debt and for general partnership purposes. According to Willie Chiang, Chairman, CEO and President, this sale completes their transformation to a premier pure play crude oil midstream company. Keyera has been preparing for integration since the deal was announced in June 2025 and will begin integrating employees, systems, and operations to capture efficiencies.
