A PYMNTS Company

Canada Moves to Block $3.7 Billion Natural Gas Infrastructure Deal

By  |  May 6, 2026

Canada’s competition regulator said Tuesday it is seeking to block Keyera Corp.’s proposed acquisition of Plains All American Pipeline L.P. Canadian natural-gas liquids business, arguing the deal would tighten control over key energy infrastructure and reduce competition in a critical Alberta processing market.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The Competition Bureau Canada said the planned transaction, valued at approximately $3.7 billion, would significantly lessen competition at the natural-gas liquids processing hub in Fort Saskatchewan, according to the Wall Street Journal. The regulator said Canadian energy producers depend on the facility to process natural-gas liquids into marketable products and to access essential storage infrastructure.

    Following what officials described as an extensive review, the bureau concluded the acquisition would eliminate Plains as a competitor in the region, reducing the number of operators at the Fort Saskatchewan hub from three to two, per the Wall Street Journal. The remaining major operators in the market would include Keyera and Pembina Pipeline Corp..

    “That loss of competition matters,” said Anthony Durocher of the Competition Bureau’s mergers and monopolistic practices branch during a technical briefing on Tuesday.

    The bureau said natural-gas liquids processing — including fractionation and storage — plays a vital role in Canada’s energy economy. Officials warned that the merger could lead to higher prices for producers and result in “less favourable contract terms,” according to the Wall Street Journal.

    Natural-gas liquids processed at the Alberta hub are used across several sectors, including home heating, agriculture, and petrochemical manufacturing, while also supporting Canadian producers’ access to both domestic and international markets.

    The Competition Bureau has filed an application with the Competition Tribunal, an independent adjudicative body that reviews mergers and business practices that may harm competition.

    In response, Keyera said it disagrees with the regulator’s findings and plans to contest the application. In a statement posted on its website, the company said: “As the Company has previously advised, the Transaction will strengthen competition across the basin and provide customers with improved access to key markets and greater flexibility in how their products are handled, transported and sold.”

    Source: The Wall Street Journal