TransAlta and Tidewater Midstream Agree to Sell Pioneer Pipeline

(P&GJ) — TransAlta and Tidewater Midstream have entered into an agreement with ATCO Gas and Pipelines to sell the Pioneer Pipeline for a purchase price of CDN $255 million.

This agreement replaces the Company's previous agreement to sell its interest in the Pioneer Pipeline to NOVA Gas Transmission.

ATCO acquired the right to purchase the Pioneer Pipeline through an option agreement with NGTL.

Following closing of the transaction, Pioneer will be integrated into NGTL's and ATCO's Alberta natural gas transmission systems to provide natural gas supply to the Company's power generation stations at Sundance and Keephills.

As part of this transaction, TransAlta has entered into additional long-term gas transportation agreements with NGTL for a total of new and existing transportation service of 400 TJ/day by 2023.

TransAlta's current commitments, including the 139 TJ/day with Tidewater, remain in place until closing of the transaction.

"We are excited to work with both ATCO and NGTL to meet our gas supply requirements as we execute our strategy of providing 100% clean, reliable and affordable electricity to Albertans" says Dawn Farrell, President and CEO, TransAlta.

The transaction is subject to customary regulatory approvals which is anticipated by the second quarter of 2021.

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