Canadian oil and gas operator Keyera Corp. entered into an agreement with the American Plains All American Pipeline LP to acquire the LNG division and some American assets for 5.15 billion Canadian dollars ($3.77 billion) in order to expand its own pipeline system in Canada. This is reported in the Keyera press release.
The deal includes more than 1,500 miles of pipeline infrastructure with a capacity of 575,000 barrels per day and aims to increase Keyera's market value by 46% to CAD$19 billion after closing in the first quarter of 2026.
Negotiations on the deal were conducted for six months and ended with the signing of an agreement after Keyera repaid its debt in the amount of 500 million Canadian dollars. The deal opens up opportunities for Keyera's operations in eastern and western Canada, including processing facilities, storage infrastructure, and road and rail terminals. Foreign companies are withdrawing from the Canadian energy industry or reducing their presence by selling assets to local companies.
Plains is also interested in the deal, given the increased profitability from crude oil production and the possibility of using the proceeds for major acquisitions and repurchases of preferred and common shares.
Plains All American Pipeline is an American oil and gas company that maintains a network of gas and oil pipelines, storage facilities and terminals. The headquarters is located in Houston, Texas.
Keyera is one of the largest oil and gas operators in Canada. The company serves oil and gas producers and transports liquid natural gas (propane, ethane, butane, condensate, and isooctane) to North American markets. The headquarters is located in Calgary, Canada.
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