The Pioneer Pipeline in Alberta, Canada, is to be acquired by TC Energy for $255m, through its wholly owned subsidiary NOVA Gas Transmission (NGTL). TC has signed a letter of intent with Tidewater Midstream & Infrastructure Ltd. and TransAlta to purchase it, TC said in a statement.
The pipeline runs from west of Drayton Valley to west of Edmonton. The transaction for its purchase is supported by firm delivery contracts for 328 million cubic feet per day (mmcf/d) for 15 years and a firm receipt contract for 47mmcf/d for eight years, the statement added.
Dawn Farrell, TC Energy President and Chief Executive Officer, said: “Tidewater has been an exceptional partner that was able to build the Pioneer Pipeline well ahead of schedule, allowing us to significantly reduce our carbon emissions and costs.
“Going forward, we are excited to work with TC Energy to meet our transportation requirements as we continue to execute our clean energy strategy, which will support our goals as a leader in clean electricity generation.”
For more information visit www.tcenergy.com