TransAlta Corp., with its partner Tidewater Midstream & Infrastructure Ltd., has sold the 131-km Pioneer Pipeline to ATCO Gas and Pipelines Ltd. Pioneer will be integrated into Nova Gas Transmission Ltd.’s (NGTL) and ATCO's Alberta natural gas transmission systems to supply TransAlta’s powerplants at Sundance and Keephills.
As part of this transaction, TransAlta entered into additional long-term transportation agreements with NGTL for a total of new and existing transportation service of 400 MMcfd by 2023. TransAlta's current commitments, including 139 MMcfd with Tidewater, remain in place until closing of the transaction.
This deal replaces TransAlta’s previous agreement to sell its interest in Pioneer Pipeline to NGTL (OGJ Online, Mar. 12, 2020). ATCO acquired the right to purchase the Pioneer Pipeline through an option agreement with NGTL and paid CDN $255 million ($192 million).
The transaction is subject to customary regulatory approvals which are anticipated by second-quarter 2021.