CALGARY — The Competition Bureau is challenging Keyera Corp.’s proposed deal to buy the Canadian natural gas liquids business of Plains All American Pipeline LP, a move the Calgary-based energy infrastructure company opposes.

The regulator said Tuesday the proposed transaction would reduce competition at Canada’s most important natural gas liquids hub at Fort Saskatchewan, Alta., and it is seeking an order from the Competition Tribunal to preserve competition.

“Competitive energy markets are essential to drive investment, innovation, productivity and economic growth in Canada,” said interim commissioner Jeanne Pratt.

“The bureau is taking this action to protect competition at a critical energy hub and to ensure that Canadian producers are not harmed by increased concentration and reduced choice.”

The bureau said the deal would significantly increase market concentration in natural gas liquids processing and give the merged firm greater ability to raise prices, impose less favourable contract terms and reduce incentives to expand capacity.

The assets to be acquired under the $5.15-billion deal first announced last year include 193,000 barrels per day of “fractionation capacity,” where gas and liquids are separated, as well as 23 million barrels of storage capacity and more than 2,400 kilometres of pipeline infrastructure.

Keyera said the regulatory proceeding does not prevent it from closing the transaction.

“The company disagrees with the commissioner’s assertions and characterization of the transaction, and intends to respond to the application,” Keyera said in a news release.

“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.”

This report by The Canadian Press was first published May 5, 2026.

Companies in this story: (TSX:KEY)

Lauren Krugel, The Canadian Press