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TransAlta and Tidewater Midstream Sign Letter of Intent to Sell the Pioneer Pipeline
TransAlta and Tidewater Midstream Sign Letter of Intent to Sell the Pioneer Pipeline ...
About this update from Transalta Corporation
[{"type":"text","content":"\n\n\n\nTransAlta and Tidewater Midstream Sign Letter of Intent to Sell the Pioneer Pipeline\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, March 12, 2020\n\n\n\nCALGARY, March 12, 2020 /CNW/ - TransAlta Corporation (\"TransAlta\" or the \"Company\") (TSX: TA) (NYSE: TAC) announced today that the Company, with its partner Tidewater Midstream & Infrastructure Ltd. (\"Tidewater\"), has entered into a Letter of Intent to sell the Pioneer Pipeline to NOVA Gas Transmission Ltd. (\"NGTL\"), a wholly-owned subsidiary of TC Energy, for a purchase price of CDN $255 million. As part of the transaction, NGTL intends to integrate the Pioneer Pipeline into its natural gas pipeline infrastructure in Alberta.\nThe benefits of the transaction to TransAlta include:\nAccess to NGTL's highly liquid natural gas network and gas trading hub; Additional reliability and flexibility of having two pipelines delivering natural gas to the Company's power stations; Access to a broad and diversified group of gas producers and resource basins; and Cash proceeds that can be used to fund the Company's natural gas conversion program, or for other purposes.As part of the transaction, TransAlta will enter into long-term delivery transportation agreements with NGTL, bringing the total of new and existing natural gas pipeline transportation service to 400 TJ/day by 2023.  TransAlta's current commitments, including the 139 TJ/day with Tidewater, will remain in place until the closing of the transaction.\n\"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,\" said Dawn Farrell, President and Chief Executive Officer of the Company. \"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.\"\nThe transaction is subject to entering into a Purchase and Sale Agreement, and customary regu...