TC Energy Signs Letter of Intent to Acquire Pioneer Pipeline
(P&GJ) — TC Energy announced that its wholly owned subsidiary, NOVA Gas Transmission Ltd., has executed an exclusive letter of intent with Tidewater Midstream and Infrastructure Inc. and TransAlta Corporation to purchase the Pioneer Pipeline for $255 million.
The Pioneer Pipeline consists of 131 km (81 miles) of operating pipeline that, upon closing of the transaction, will be integrated into the NGTL System. The pipeline is located within Alberta and runs from west of Drayton Valley to west of Edmonton. 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.
“Utilizing the existing Pioneer Pipeline maximizes the use of existing infrastructure and provides the most efficient solution to deliver gas to this growing demand,” says Tracy Robinson, Executive Vice-President and President, Canadian Natural Gas Pipelines.
The proposed purchase of the Pioneer Pipeline is subject to execution of definitive agreements, which is expected to occur in the second quarter of 2020. The acquisition and operation of Pioneer Pipeline by NGTL also requires approval of the Canadian Energy Regulator.
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