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Tidewater Midstream and Infrastructure Ltd. announces definitive agreement to sell Pioneer Pipeline

Published by , Editorial Assistant
World Pipelines,

Tidewater Midstream and Infrastructure Ltd. (Tidewater or the Corporation) has announced that, with its partner TransAlta Corporation (TransAlta), it has entered into a definitive Purchase and Sale Agreement with respect to the previously announced sale of the Pioneer Pipeline to NOVA Gas Transmission Ltd., a wholly-owned subsidiary of TC Energy, for total cash consideration of CAN$255 million (the Pioneer Transaction).

The Pioneer Pipeline is a 20 in., 120 km pipeline connecting Tidewater’s Brazeau River Complex to TransAlta’s generating units at Keephills along with an 11km lateral to Sundance. Throughput from the Pioneer Pipeline is approximately 130 million ft3/d of natural gas. Proceeds of the transaction will be split equally between Tidewater and TransAlta pursuant to their existing Pioneer Pipeline partnership.

In addition, Tidewater and TransAlta have agreed to terms whereby, upon closing of the Pioneer Transaction, TransAlta will pay Tidewater CAN$10.5 million for certain ancillary assets not included in the Pioneer Transaction, and for completion of some budgeted restoration work along the Pioneer Pipeline route that was delayed until 2020 due to weather.

Closing of the Pioneer Transaction is subject to certain customary conditions for a transaction of this nature including regulatory approval.

Tidewater will use the proceeds from the disposition to accelerate its deleveraging plan and repay debt under its credit facilities.

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