Canadian Utilities Acquires Pioneer Pipeline for $255 Million
CALGARY, AB, Oct. 1, 2020 /CNW/ - ATCO Ltd. (TSX: ACO.X) (ACO.Y) / Canadian Utilities Limited (TSX: CU) (TSX: CU.X)
Canadian Utilities subsidiary ATCO Gas and Pipelines Ltd. ("ATCO") has entered into a Purchase and Sale Agreement to acquire the Pioneer Pipeline from Tidewater Midstream & Infrastructure Ltd. ("Tidewater") and its partner TransAlta Corporation ("TransAlta") for a purchase price of CDN $255 million. The 131-km natural gas pipeline runs from the Drayton Valley area to the Wabamun area west of Edmonton, Alberta.
This agreement replaces the previously announced purchase and sale agreement to sell the Pioneer Pipeline to NOVA Gas Transmission Ltd. ("NGTL") and is under substantially similar terms.
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, 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 & Chief Executive Officer, Canadian Utilities.
With approximately 4,600 employees and assets of $20 billion, Canadian Utilities Limited is an ATCO company. Canadian Utilities is a diversified global energy infrastructure corporation delivering essential services and innovative business solutions in Utilities (electricity and natural gas transmission and distribution, and international electricity operations); Energy Infrastructure (electricity generation, energy storage, and industrial water solutions); and Retail Energy (electricity and natural gas retail sales). More information can be found at www.canadianutilities.com.
Investor & Analyst Inquiries:
Myles Dougan
Director, Investor Relations & External Disclosure
T: 403-292-7879 C: 403-828-2908
Media Inquiries:
Kurt Kadatz
Senior Manager, Corporate Communications
T: 587-228-4571
Forward-Looking Information:
Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", and similar expressions.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information.
The Company's actual results could differ materially from those anticipated in this forward-looking information as a result of regulatory decisions, competitive factors in the industries in which the CompaSZQX0-Oany operates, prevailing economic conditions (including as may be affected by the COVID-19 pandemic), and other factors, many of which are beyond the control of the Company.
The Company believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.
Any forward-looking information contained in this news release represents the Company's expectations as of the date hereof, and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.
SOURCE Canadian Utilities Limited
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