Tidewater Midstream to Acquire Segment of Pembina's Western Pipeline System
Tidewater Midstream is acquiring a segment of Pembina Pipeline's 234-mile Western pipeline system in British Columbia, Tidewater announced on May 6. The deal secures long-term access to crude for the Prince George Refinery and is expected to close by September.
(P&GJ) — Tidewater Midstream and Infrastructure Ltd. has reached a definitive agreement with Pembina Pipeline Corporation and its affiliates to acquire the North Segment of Pembina’s Western Pipeline System in a deal valued at CAD$1.2 million ($870,000) in cash, plus the assumption of abandonment and reclamation liabilities of approximately CAD$30 million ($22 million).
The 377-km (234-mile) crude oil pipeline runs from Taylor, British Columbia, to Prince George, British Columbia, and serves as a critical link to the Prince George Refinery (PGR).
The transaction includes a 25-year interconnection agreement that will allow Tidewater to continue sourcing crude from the Taylor Terminal. The deal is expected to reduce feedstock costs and improve product margins at the refinery, the company said.
“We are excited to announce the agreement to purchase the Western Pipeline,” said Jeremy Baines, CEO of Tidewater. “The transaction provides the opportunity to unlock meaningful cost savings, increase flexibility, and enhance control of our day-to-day refining operations at PGR.”
Tidewater expects the transaction to close on or before Sept. 1, 2025, pending regulatory approvals and customary post-closing adjustments.