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Keyera Corp.’s natural gas liquids facilities in Fort Saskatchewan. Photo courtesy Keyera Corp.

From the Canadian Energy Centre

By Will Gibson

Keyera ‘Canadianizes’ natural gas liquids with $5.15 billion acquisition

Sarnia, Ont., which sits on the southern tip of Lake Huron and peers across the St. Clair River to Michigan, is a crucial energy hub for much of the eastern half of Canada and parts of the United States.

With more than 60 industrial facilities including refineries and chemical plants that produce everything from petroleum, resins, synthetic rubber, plastics, lubricants, paint, cosmetics and food additives in the southwestern Ontario city, Mayor Mike Bradley admits the ongoing dialogue about tariffs with Canada’s southern neighbour hits close to home.

So Bradley welcomed the announcement that Calgary-based Keyera Corp. will acquire the majority of Plains American Pipelines LLP’s Canadian natural gas liquids (NGL) business, creating a cross-Canada NGL corridor that includes a storage hub in Sarnia.

“As a border city, we’ve been on the frontline of the tariff wars, so we support anything that helps enhance Canadian sovereignty and jobs,” says the long-time mayor, who was first elected in 1988.

The assets in Sarnia are a key piece of the $5.15 billion transaction, which will connect natural gas liquids from the growing Montney and Duvernay plays in B.C. and Alberta to markets in central Canada and the eastern U.S. seaboard.

Map courtesy Keyera Corp.

NGLs are hydrocarbons found within natural gas streams including ethane, propane and pentanes. They are important energy sources and used to produce a wide range of everyday items, from plastics and clothing to fuels.

Keyera CEO Dean Setoguchi cast the proposed acquisition as an act of repatriation.

“This transaction brings key NGL infrastructure under Canadian ownership, enhancing domestic energy capabilities and reinforcing Canada’s economic resilience by keeping value and decision-making closer to home,” Setoguchi told analysts in a June 17 call.

“Plains’ portfolio forms a fully integrated cross Canada NGL system connecting Western Canada supply to key demand centres across the Prairie provinces, Ontario and eastern U.S.,” he said.

“The system includes strategic hubs like Empress, Fort Saskatchewan and Sarnia – which provide a reliable source of Canadian NGL supply to extensive fractionation, storage, pipeline and logistics infrastructure.”

Martin King, RBN Energy’s managing director of North America Energy Market Analysis, sees Keyera’s ability to “Canadianize” its NGL infrastructure as improving the company’s growth prospects.

“It allows them to tap into the Duvernay and Montney, which are the fastest growing NGL plays in North America and gives them some key assets throughout the country,” said the Calgary-based analyst.

“The crown assets are probably the straddle plants in Empress, which help strip out the butane, ethane and other liquids for condensate. It also positions them well to serve the eastern half of the country.”

And that’s something welcomed in Sarnia.

“Having a Canadian source for natural gas would be our preference so we see Keyera’s acquisition as strengthening our region as an energy hub,” Bradley said.

“We are optimistic this will be good for our region in the long run.”

The acquisition is expected to close in the first quarter of 2026, pending regulatory approvals.

Meanwhile, the governments of Ontario and Alberta are joining forces to strengthen the economies of both regions, and the country, by advancing major infrastructure projects including pipelines, ports and rail.

A joint feasibility study is expected this year on how to move major private sector-led investments forward.