CALGARY, AB, Oct. 1, 2020 /PRNewswire/ - TransAlta
Corporation ("TransAlta" or the "Company") (TSX: TA) (NYSE: TAC)
announced today that the Company, with its partner Tidewater
Midstream & Infrastructure Ltd. ("Tidewater"), has entered into
a Purchase and Sale Agreement with ATCO Gas and Pipelines Ltd.
("ATCO") to sell the Pioneer Pipeline for a purchase price of CDN
$255 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 reliable 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
place until closing of the transaction.
"We are excited to work with both ATCO and NGTL to meet our gas
supply requirements as we execute our strategy of providing 100%
clean, reliable and affordable electricity to Albertans" says
Dawn Farrell, President and CEO,
TransAlta.
The transaction is subject to customary regulatory approvals
which is anticipated by the second quarter of 2021.
About TransAlta:
TransAlta owns, operates and develops a diverse fleet of
electrical power generation assets in Canada, the United
States and Australia with a
focus on long-term shareholder value. TransAlta provides
municipalities, medium and large industries, businesses and utility
customers with clean, affordable, energy efficient and reliable
power. Today, TransAlta is one of Canada's largest producers of wind power and
Alberta's largest producer of
hydroelectric power. For over 100 years, TransAlta has been a
responsible operator and a proud community-member where its
employees work and live. TransAlta aligns its corporate goals with
the UN Sustainable Development Goals and has been recognized by CDP
(formerly Climate Disclosure Project) as an industry leader on
Climate Change Management. TransAlta is proud to have achieved the
Silver level PAR (Progressive Aboriginal Relations) designation by
the Canadian Council for Aboriginal Business.
For more information about TransAlta, visit its web site at
transalta.com.
Cautionary Statement Regarding Forward Looking
Information
This news release contains forward looking statements within
the meaning of applicable securities laws. The use of
any of the words "expect", "anticipate", "continue", "estimate",
"may", "will", "project", "should", "propose", "plans", "intends"
and similar expressions are intended to identify forward looking
information or statements. More particularly, and without
limitation, this news release contains forward looking statements
and information relating to the Pioneer
Pipeline; sale of the Pioneer Pipeline to ATCO;
regulatory approvals; execution of the definitive agreements;
NGTL's intention to integrate the Pioneer Pipeline into its natural
gas pipeline infrastructure in Alberta; the potential benefits of the
transaction; and estimated natural gas pipeline transportation
service with NGTL. These forward looking statements
are based on a number of assumptions considered by the Company to
be reasonable as of the date of this news release, including, but
not limited to, the following: no significant changes to applicable
laws and regulations, including any tax and regulatory changes; no
significant changes to our relationship with Tidewater; and
assumptions regarding our current strategy and priorities,
including as it pertains to our natural gas conversion
program and the clean energy strategy. The forward looking
statements are subject to a number of risks and uncertainties that
may cause actual performance, events or results to differ
materially from those contemplated by the forward looking
statements, which include: disruptions in the source
of fuels, including natural gas required for the natural gas
conversions and repowering strategies; changes in economic and
market conditions; changes in tax, environmental, regulatory and
other laws and regulations; and other risks and uncertainties
discussed in the Company's materials filed with the Canadian
securities regulatory authorities from time to time and as also set
forth in the Company's Management's Discussion and Analysis dated
December 31, 2019, filed under the
Company's profile with the Canadian securities regulators on
www.sedar.com. Readers are cautioned not to place undue reliance on
this forward-looking information, which is given as of the date it
is expressed in this news release. The Company undertakes no
obligation to update or revise any forward looking information
except as required by law.
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SOURCE TransAlta Corporation