Plains All American through its wholly owned subsidiary Plains Midstream Canada (“Plains”), announced today that it has entered into definitive agreements to sell its 21 percent non-operated/undivided ownership interest in the Keyera Fort Saskatchewan (KFS) facility to Keyera Corporation for approximately $365MM CAD ($270 million USD). The transaction, which is subject to Canadian Competition Bureau review and closing conditions, is anticipated to close in the first quarter 2023.
“Today’s win-win announcement allows us to monetize our 21 percent ownership of the KFS JV, while improving key connectivity for our Plains Fort Saskatchewan facility,” stated Willie Chiang, Chairman and CEO of Plains All American. “The sale proceeds will be utilized to further lower our leverage, strengthen our financial positioning and potentially reinvest in capital-efficient expansions and improvements at the Plains Fort Saskatchewan facility.”
The divestiture includes all of Plains’ interest in the Keyera Fort Saskatchewan facility. Under the agreement, Plains will maintain its current customers and contracts and lease back fractionation and storage capacity at the Keyera facility for a multi-year transition period, and the parties have agreed to improve the long-term propane, butane, condensate and C3+ connectivity between their respective assets.
For more information visit www.plains.com
