TC Energy signs letter of intent to acquire Pioneer Pipeline
12 März 2020 - 12:15PM
Media Advisory – TC Energy Corporation (TSX, NYSE: TRP) (TC Energy)
today announced that its wholly owned subsidiary, NOVA Gas
Transmission Ltd. (NGTL), 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 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.
“This acquisition presents a unique opportunity to connect
Western Canadian Sedimentary Basin (WCSB) supply to Alberta power
generation demand, which supports coal-to-gas conversion and lowers
carbon emissions,” says Tracy Robinson, Executive Vice-President
and President, Canadian Natural Gas Pipelines. “Utilizing the
existing Pioneer Pipeline maximizes the use of existing
infrastructure and provides the most efficient solution to deliver
gas to this growing demand.”
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.
About the NGTL SystemFor over 65 years, the
NGTL System has safely and reliably received, gathered, transported
and delivered natural gas produced from Alberta. That legacy
continues today and into the future with additional connections
across Alberta and into northeast B.C. Spanning 25,000 km in
length, the NGTL System delivers energy from the prolific WCSB to
millions of North Americans every day.
About TC EnergyWe are a vital part of everyday
life - delivering the energy millions of people rely on to power
their lives in a sustainable way. Thanks to a safe, reliable
network of natural gas and crude oil pipelines, along with power
generation and storage facilities, wherever life happens — we’re
there. Guided by our core values of safety, responsibility,
collaboration and integrity, our more than 7,300 people make a
positive difference in the communities where we operate across
Canada, the U.S. and Mexico. TC Energy’s common shares trade on the
Toronto (TSX) and New York (NYSE) stock exchanges under the symbol
TRP. To learn more, visit us at TCEnergy.com.
Media Inquiries:Kelly Matthews403-920-7859 or
800-608-7859
Investor & Analyst Inquiries:David Moneta /
Duane Alexander403-920-7911 or 800-361-6522
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