New Buyer for Canadian Gas to Power Pipeline
Alberta power utility TransAlta and Tidewater Midstream & Infrastructure said October 1 they had reached a new agreement to sell their Pioneer Pipeline in west central Alberta to Atco Gas and Pipelines for C$255mn (US$191mn).
The agreement replaces an earlier deal to sell the pipeline, at the same price, to TC Energy’s Nova Gas Transmission Limited (NGTL) system. Atco acquired the right to purchase Pioneer through an option agreement with NGTL.
The Pioneer Pipeline extends about 131 km from Tidewater’s Brazeau River complex west of Drayton Valley to TransAlta’s Sundance and Keephills power generating stations west of Edmonton, which are being converted to use natural gas instead of coal.
As part of the transaction, TransAlta has entered into additional long-term gas transportation agreements with NGTL for 400 Tj/d of service by 2023. An existing transportation agreement with Tidewater for 139 Tj/d will remain in place until the transaction closes.
Following closing, expected in Q2 2021, Pioneer will be integrated into the NGTL and Atco gas transmission systems.