CALGARY, AB, Oct. 1, 2020 /CNW/ - Tidewater Midstream and
Infrastructure Ltd. ("Tidewater" or the "Corporation"),
together with its partner TransAlta Corporation ("TransAlta") has
entered into an updated Purchase and Sale Agreement ("PSA") with
ATCO Gas and Pipelines Ltd. ("ATCO") to sell the Pioneer Pipeline
to ATCO for a purchase price of CDN $255
million under substantially similar terms to the previously
announced transaction with NOVA Gas Transmission Ltd. ("NGTL").
This PSA replaces the previously announced purchase and sale
agreement to sell the Pioneer Pipeline to NGTL. ATCO acquired
the right to purchase the Pioneer Pipeline through an option
agreement with NGTL. The transaction is subject to customary
conditions in a transaction of this nature including regulatory
approvals by the Alberta Utilities Commission and the Alberta
Energy Regulator.
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Following closing of the transaction, the Pioneer Pipeline will
be integrated into NGTL's and ATCO's Alberta integrated natural gas transmission
systems to provide reliable natural gas supply to TransAlta's power
generating units at Sundance and
Keephills. Subsequent to the sale of the Pioneer
Pipeline, Tidewater will enter into additional long-term firm
receipt gas transportation agreements with NGTL and is in
discussions with NGTL for additional services at the Brazeau River
Complex to take effect following the termination of the existing 15
year take or pay agreement with TransAlta. Tidewater's
current commitments on the Pioneer Pipeline, including the delivery
of 139 TJ/day of natural gas to TransAlta will remain in place
until closing of the sale to ATCO.
Toby McKenna, President of the
Midstream division at Tidewater said "This transaction is
beneficial to all parties involved as TransAlta converts its coal
fired plants to clean burning natural gas. All stakeholders
will gain from increased natural gas flows."
About Tidewater
Tidewater is traded on the TSX under the symbol "TWM".
Tidewater's business objective is to build a diversified midstream
and infrastructure company in the North American natural gas,
natural gas liquids and crude oil and refined product space. Its
strategy is to profitably grow and create shareholder value through
the acquisition and development of oil and gas infrastructure.
Tidewater plans to achieve its business objective by providing
customers with a full service, vertically integrated value chain,
including gas plants, pipelines, railcars, export terminals,
storage and downstream facilities.
Cautionary Notes
Advisory Regarding Forward-Looking Statements
In the interest of providing Tidewater's shareholders and
potential investors with information regarding Tidewater,
including management's assessment of Tidewater's future plans and
operations, certain statements in this press release are
"forward-looking information" within the meaning of applicable
Canadian securities legislation ("forward-looking statements"). In
some cases, forward-looking statements can be identified by
terminology such as "anticipate", "believe", "continue", "could",
"estimate", "expect", "forecast", "intend", "may", "objective",
"ongoing", "outlook", "potential", "project", "plan", "should",
"target", "would", "will" or similar words suggesting future
outcomes, events or performance. The forward-looking statements
contained in this press release speak only as of the date thereof
and are expressly qualified by this cautionary statement.
Specifically, this press release contains forward-looking
statements relating to but not limited to: the sale of the Pioneer
Pipeline to ATCO, subject to customary conditions including
regulatory approval (the "Proposed Transaction") and the proceeds
to be received by Tidewater from the Proposed Transaction; the
integration of the Pioneer Pipeline into NGTL's and ATCO's
Alberta natural gas transmission
systems; the anticipated receipt of all regulatory approvals for
the Proposed Transaction; and anticipated outcomes of discussions
with NGTL for additional long-term firm receipt as transportation
agreements and additional services at the Brazeau River
Complex. These forward-looking statements are based on
certain key assumptions regarding, among other things: Tidewater's
ability to execute on its business plan; the timely receipt of all
governmental and regulatory approvals; the availability of capital
to fund future capital requirements relating to existing assets and
projects; that third parties will provide any necessary support;
that any third party projects relating to the Corporation's
divestitures will be sanctioned and completed as expected; that
there are no unforeseen events preventing the performance of
contracts; that there are no unforeseen material changes related to
the divestitures and that such divestitures will close as expected;
that counterparties will comply with contracts in a timely manner;
new commercial arrangements or current operations; our operating
activities; and current industry conditions, laws and regulations
continuing in effect (or, where changes are proposed, such changes
being adopted as anticipated). Readers are cautioned that such
assumptions, although considered reasonable by Tidewater at the
time of preparation, may prove to be incorrect.
Actual results achieved will vary from the information provided
herein as a result of numerous known and unknown risks and
uncertainties and other factors. These known and
unknown risks and uncertainties, include, but are not limited
to: the regulatory environment and decisions; the
possibility that governmental policies or laws may change or
governmental approvals may be delayed or withheld; the ability of
Tidewater or its joint venture partners or customers to raise
sufficient capital (or to raise sufficient capital on favourable
terms) to fund future expansions and growth projects and satisfy
future commitments; failure to negotiate and conclude any required
commercial agreements; risks and impacts related to widespread
epidemic or pandemic outbreaks, including COVID-19; non-performance
of agreements in accordance with their terms; the impact of
competitive entities and pricing; reliance on key industry
partners, alliances and agreements; the continuation or completion
of third-party projects; actions by governmental or regulatory
authorities including changes in tax laws and treatment,
construction delays; labour and material shortages; and certain
other risks detailed from time to time in Tidewater's public
disclosure documents including, among other things, those detailed
under the heading "Risk Factors" in Tidewater's management's
discussion and analysis and annual information form for the year
ended December 31, 2019.
The above summary of assumptions and risks related to
forward-looking statements in this press release has been provided
in order to provide shareholders and potential investors with a
more complete perspective on Tidewater's current and future
operations and such information may not be appropriate for other
purposes. There is no representation by Tidewater that actual
results achieved will be the same in whole or in part as those
referenced in the forward-looking statements and Tidewater does not
undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required
by applicable securities law.
Additional information relating to Tidewater is available on
SEDAR at www.sedar.com and at www.tidewatermidstream.com.
SOURCE Tidewater Midstream and Infrastructure Ltd.