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Tidewater announces change in purchaser on Pioneer Pipeline disposition

Published by , Editorial Assistant
World Pipelines,

Tidewater Midstream and Infrastructure Ltd. (‘Tidewater’ or the ‘Corporation’), together with its partner TransAlta Corporation (TransAlta) has entered into an updated Purchase and Sale Agreement (PSA) with ATCO Gas and Pipelines Ltd. (ATCO) to sell the Pioneer Pipeline to ATCO for a purchase price of CAN$255 million under substantially similar terms to the previously announced transaction with NOVA Gas Transmission Ltd. (NGTL).

This PSA replaces the previously announced purchase and sale agreement to sell the Pioneer Pipeline to NGTL. ATCO acquired the right to purchase the Pioneer Pipeline through an option agreement with NGTL. The transaction is subject to customary conditions in a transaction of this nature including regulatory approvals by the Alberta Utilities Commission and the Alberta Energy Regulator.

Following closing of the transaction, the Pioneer Pipeline will be integrated into NGTL's and ATCO's Alberta integrated natural gas transmission systems to provide reliable natural gas supply to TransAlta's power generating units at Sundance and Keephills. Subsequent to the sale of the Pioneer Pipeline, Tidewater will enter into additional long-term firm receipt gas transportation agreements with NGTL and is in discussions with NGTL for additional services at the Brazeau River Complex to take effect following the termination of the existing 15 year take or pay agreement with TransAlta. Tidewater's current commitments on the Pioneer Pipeline, including the delivery of 139 TJ/d of natural gas to TransAlta will remain in place until closing of the sale to ATCO.

Toby McKenna, President of the Midstream division at Tidewater said "This transaction is beneficial to all parties involved as TransAlta converts its coal fired plants to clean burning natural gas. All stakeholders will gain from increased natural gas flows."

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