Court Order Advances Investigation into Keyera’s Proposed Oil and Gas Acquisition

The Competition Bureau of Canada has secured a court order to further its investigation into Keyera Corp’s proposed acquisition of Plains All American Pipeline LP’s Canadian natural gas liquids business. This move is pivotal as both companies are significant players in the midstream oil and gas sector.

Court Order Advances Investigation into Keyera’s Proposed Acquisition

Keyera is based in Calgary, Alberta, and operates primarily in Canada and Oklahoma. Plains All American, a U.S. firm, has operations across several Canadian provinces, including Alberta, Saskatchewan, Manitoba, and Ontario. Both companies are crucial to the transportation, fractionation, storage, and marketing of natural gas liquids in Fort Saskatchewan, Alberta.

Key Issues Under Investigation

• Competition Concerns: The Bureau is examining if the acquisition may significantly reduce competition in the Canadian oil and gas market.
• Market Barriers: The investigation will assess whether this transaction could create barriers for competitors and emerging market entrants.
• Competitive Position: There will be a focus on whether the acquisition may solidify Keyera’s dominance in the energy infrastructure sector.

Role of Inter Pipeline Ltd

As part of the investigation, Inter Pipeline Ltd—a notable entity within the Canadian oil and gas industry—has been ordered to provide pertinent documents. This information will aid the Bureau in its comprehensive review of the proposed acquisition.

Natural Gas Liquids Market Overview

• Natural gas liquids are byproducts of natural gas, which are essential for heating, agriculture, and petrochemical manufacturing.
• Products from this market are distributed both domestically and globally.
• Fort Saskatchewan is particularly vital, with about 87% of Alberta’s fractionation activity occurring in this region, according to the Alberta Energy Regulator.

The Competition Bureau serves as an independent agency that aims to foster competition for the benefit of Canadian consumers and businesses. By promoting competition, it seeks to lower prices, encourage innovation, and stimulate economic growth across Canada.