Calgary pipeline companies South Bow and Keyera report sharp profit surges, eye growth
South Bow secured 465,000 barrels a day in long-term customer commitments for its Prairie Connector pipeline; Keyera more than doubled Q2 profits to $308 million after a $5.3 billion acquisition.
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Two Calgary-based pipeline operators reported significant profit increases in the spring quarter and are pursuing divergent growth strategies, with one eyeing a major cross-border oil pipeline and the other integrating recent acquisitions.
South Bow Corp. aims to turn increasing producer demand into major oil pipeline projects extending south of the border. The company's defining achievement was securing 465,000 barrels a day of 20-year customer commitments from producers during an open season for its proposed Prairie Connector line, which would use existing infrastructure from the cancelled Keystone XL project to deliver oil to refineries and export terminals on the U.S. Gulf Coast.
Bevin Wirzba, South Bow's chief executive, told analysts the commitment represents a strong endorsement from customers and may help enable larger-scale production growth in Canada. South Bow aims to reach a final investment decision by mid-2027, but a permit for Prairie Connector is still needed for the project to move forward. Bridger's proposal for the U.S. portion, called Liberty Bridge, received a permit from President Donald Trump in April.
South Bow's spring quarter profits rose to US$134 million, nearly 40 per cent higher than the same period last year.
Meanwhile, Keyera Corp. is pursuing a growth strategy further along, having closed a $5.3-billion acquisition of Plains All American Pipeline's Canadian natural gas liquids business in May and purchased the Key Access Pipeline System (KAPS) in June. KAPS is a 575-kilometre natural gas liquids and condensate system in northern Alberta.
Keyera's Q2 profits more than doubled to $308 million, compared to $127 million last year. CEO Dean Setoguchi said: "We see a ton of opportunity that's going to carry our growth well beyond 2029. We're very excited."
However, Keyera's major acquisition is being challenged by the Competition Bureau, which argues the takeover would reduce competition at Canada's "most important" natural gas liquids hub in Fort Saskatchewan. A competition tribunal will determine next steps and timelines, though the regulatory challenge did not prevent the transaction from closing.
Keyera maintains the acquisition will "strengthen" competition while providing customers with better access to key markets.
Will South Bow obtain a permit for the Canadian portion of the Prairie Connector pipeline before seeking a final investment decision in mid-2027?
What will the Competition Tribunal's timeline and decision be on the Competition Bureau's challenge to Keyera's $5.3 billion acquisition?
We'll update this story as answers emerge.
The facts
How many barrels a day did South Bow secure for its Prairie Connector pipeline?
South Bow secured 465,000 barrels a day of 20-year customer commitments for its Prairie Connector pipeline during an open season.
When did Keyera close its acquisition of Plains All American Pipeline's Canadian natural gas liquids business?
Keyera closed the $5.3-billion acquisition in May 2026.
What is the Competition Bureau challenging?
The Competition Bureau is challenging Keyera's acquisition of Plains All American Pipeline's Canadian natural gas liquids business, arguing it would reduce competition at Fort Saskatchewan, Canada's most important natural gas liquids hub.
