TC Energy Corp. proposed to purchase the Pioneer Pipeline, a 131 km pipeline used to transport sweet natural gas in Alberta, for C$255 million.
NOVA Gas Transmission Ltd. (NGTL), a subsidiary of the Calgary, Alberta-based company, entered the proposed purchase agreement on March 12 through an exclusive letter of intent with Tidewater Midstream and Infrastructure Inc. and TransAlta Corp. The proposed purchase is subject to execution of definitive agreements, which is expected to occur in second-quarter 2020.
The Pioneer Pipeline runs from west of Drayton Valley to west of Edmonton in Alberta within the Western Canadian Sedimentary Basin. Tidewater completed construction of the pipeline, which connects its Brazeau River gas plant to TransAlta’s generating units at Keephills and Sundance, in June 2019—four months ahead of schedule.
As part of the transaction, TransAlta will enter into long-term delivery transportation agreements with NGTL. The acquisition is underpinned by 15-year firm delivery contracts for 328 million cubic feet per day (MMcf/d) and an eight-year firm receipt contract for 47 MMcf/d, according to the TC Energy release.
TC Energy expects its NGTL subsidiary to integrate the Pioneer Pipeline into its natural gas pipeline infrastructure system in Alberta upon closing of the transaction, which requires approval of the Canadian Energy Regulator. Spanning 25,000 km in length, the NGTL System delivers energy from the prolific Western Canadian Sedimentary Basin to millions of North Americans every day, the TC Energy release said.
“This acquisition presents a unique opportunity to connect Western Canadian Sedimentary Basin supply to Alberta power generation demand, which supports coal-to-gas conversion and lowers carbon emissions,” Tracy Robinson, executive vice president and president of Canadian natural gas pipelines at TC Energy, said in a statement. “Utilizing the existing Pioneer Pipeline maximizes the use of existing infrastructure and provides the most efficient solution to deliver gas to this growing demand.”
Recommended Reading
Australia's Woodside in Talks with at Least Three Partners for Louisiana LNG, Sources Say
2025-02-18 - Woodside Energy has held talks with several potential buyers of stakes in its Louisiana LNG plant, including Tokyo Gas, Japan's JERA and Saudi Aramco-backed MidOcean Energy, multiple sources told Reuters.
Steelhead Seeks Damages from Pembina, ARC Resources, Cedar LNG
2024-12-24 - Steelhead LNG said it has filed legal proceedings against Cedar LNG, Pembina Pipeline Corp. and ARC Resources related to improperly exploited information, Steelhead said.
Tamboran, Santos Agree to Study Possible Darwin LNG Expansion
2025-01-23 - Tamboran Resources Corp. and Santos Ltd. entered a memorandum of understanding for technical studies, which could lead to a 6 mtpa expansion of Darwin LNG.
NextDecade Plans 3 More Trains at Rio Grande LNG
2025-02-28 - Houston-based NextDecade continues to build the Rio Grande LNG Center in Brownsville, Texas, as its permits filed with the Federal Energy Regulatory Commission continue to go through the legal process.
US NatGas Prices Hit 23-Month High on Increased LNG Feedgas, Heating Demand
2024-12-24 - U.S. natural gas futures hit a 23-month high on Dec. 24 in thin pre-holiday trading.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.