Keyera Corp. announced on September 3 it was reducing its 2026 guidance for Marketing segment realized margin by CAD$40 MM, citing a two-week unexpected outage on Enbridge's Line 5 pipeline, and lower than expected utilization at its Alberta EnviroFuels facility (AEF) following its re-start this spring, that will require additional equipment replacement next year.
Enbridge's Line 5 pipeline, in addition to transporting crude oil, also moves NGL mix from Keyera's Fort Saskatchewan and Empress operations to Keyera's Sarnia fractionator. Enbridge had reported a disruption to service on the line began on August 25, and in an update posted September 3 said service was expected to resume between September 6 and September 8.
Keyera's AEF iso-octane production facility (pictured below), which uses butane as a key feedstock, has seen sub-par operating performance since re-starting this May/June after a five month unplanned outage began in January. Additional equipment replacement will be required and is scheduled for May 2027. In the meantime Keyera expects the facility's utilization to "remain above 70%".
The expected margin impact of the Line 5 outage to 2026 margins is CAD$30 MM. Keyera did not disclose the expected margin impact of weaker output from the AEF facility, but noted the CAD$40 MM reduction to 2026 Marketing realized margin guidance (now CAD$320-$350 MM vs. CAD$360-$390 MM previously) also reflected changes due to "stronger than anticipated contributions from other parts of the Marketing portfolio".
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