Keyera Buys Remaining Stake in KAPS NGL Pipeline for $861 Million

$861 million deal gives Keyera full ownership of a key Montney-Duvernay NGL pipeline system.

(P&GJ) — Keyera has acquired the remaining 50% interest in the KAPS pipeline system from infrastructure investment firm Stonepeak for approximately CAD $1.215 billion (US $861 million), giving the company full ownership of the natural gas liquids (NGL) transportation network.

The transaction makes Keyera the sole owner and operator of the KAPS system, which transports condensate and NGL production from Alberta's Montney and Duvernay resource plays to downstream markets.

According to Keyera, the pipeline has secured more than 120,000 barrels per day of additional transportation commitments since 2025 across its first four operating zones. Construction of KAPS Zone 4 remains on schedule and within budget, with the expansion expected to enter service in mid-2027.

President and CEO Dean Setoguchi said full ownership of the system will provide greater operational flexibility and strengthen the company's exposure to long-term contracted volumes.

"Full ownership of KAPS provides greater flexibility and efficiency for customers while enhancing Keyera's exposure to long-term growth and contracted cash flows," Setoguchi said.

Keyera said the acquisition is expected to support future cash flow growth through long-term transportation agreements. The company noted that contracts tied to the system have an average remaining term of approximately 12 years, with a significant portion structured as take-or-pay commitments.

To help fund the acquisition, Keyera announced plans to issue approximately $525 million in common equity. The remaining purchase price was initially funded through existing credit facilities and is expected to be supported by future financing activities.