TC Energy Corp.’s wholly owned subsidiary, Nova Gas Transmission Ltd. (NGTL), has executed an exclusive letter of intent with Tidewater Midstream and Infrastructure Inc. and TransAlta Corp. to purchase the Pioneer Pipeline.
Pioneer consists of 131 km of operating pipeline that, upon closing, will be integrated into the NGTL system. The pipeline runs from west of Drayton Valley, Alta., to west of Edmonton. The acquisition is underpinned by 15-year firm delivery contracts for 328 MMcfd and an 8-year firm receipt contract for 47 MMcfd.
TC Energy said the acquisition would help connect Western Canadian Sedimentary Basin production to growing provincial power generation demand.
The proposed $255-million purchase is subject to execution of definitive agreements, expected to occur second-quarter 2020. The acquisition also requires approval of the Canadian Energy Regulator.
