Canadian Utilities acquires pioneer pipeline for $255 million

Calgary-based Canadian Utilities subsidiary ATCO Gas and Pipelines Ltd. (ATCO) has entered into an agreement to acquire the Pioneer Pipeline from Tidewater Midstream & Infrastructure Ltd. and its partner TransAlta Corporation for a purchase price of $255 million.

The 131-km natural gas pipeline runs from the Drayton Valley area to the Wabamun area west of Edmonton.

The transaction is subject to regulatory approvals by the Alberta Utilities Commission and the Alberta Energy Regulator, which are expected by the second quarter of 2021.

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 — facilitating the conversion of these coal plants to clean-burning natural gas.

“This transaction continues to illustrate ATCO’s commitment to understand and support our customers’ evolving needs and develop solutions that support the transition to a lower-emitting energy system,” said Siegfried Kiefer, president and CEO, Canadian Utilities.