TransAlta and Tidewater selling Pioneer Pipeline to Atco instead of TC Energy

CALGARY – TransAlta Corp. and its partner, Tidewater Midstream & Infrastructure Ltd. have signed a new deal to sell the Pioneer Pipeline to Atco Gas and Pipelines Ltd. for $255 million, replacing an earlier agreement to sell it to a subsidiary of TC Energy Corp. for the same price.

Atco acquired the right to purchase the Pioneer Pipeline through an option agreement with TC Energy’s Nova Gas Transmission Ltd. (NGTL)

The Pioneer Pipeline includes 131 kilometres of operating pipeline in Alberta. It runs from west of Drayton Valley to west of Edmonton.

The company says the pipeline will be integrated into NGTL’s and Atco’s Alberta natural gas transmission systems.

As part of the sale, TransAlta has entered into additional long-term gas transportation agreements with NGTL.

TransAlta owns and operates electrical power generation assets in Canada, the United States and Australia.

This report by The Canadian Press was first published Oct. 1, 2020.

Companies in this story: (TSX:TA, TSX:TRP)