TransAlta Corp. and its partner Tidewater Midstream & Infrastructure have entered into a purchase and sale agreement with ATCO Gas and Pipelines (ATCO) to sell the Pioneer Pipeline for C$255 million ($191 million).
This agreement replaces the company’s previous agreement to sell its interest in the Pioneer Pipeline to NOVA Gas Transmission Ltd. (NGTL). ATCO acquired the right to purchase the Pioneer Pipeline through an option agreement with NGTL.
Following closing of the transaction, Pioneer will be integrated into NGTL’s and ATCO’s Alberta natural gas transmission systems to provide natural gas supply to the company’s power generation stations at Sundance and Keephills. As part of this transaction, TransAlta has entered into additional long-term gas transportation agreements with NGTL for a total of new and existing transportation service of 400 TJ/day by 2023.
TransAlta’s current commitments, including the 139 TJ/day with Tidewater, remain in pla
